intermeddlers - proprietary claims Flashcards

1
Q

what are proprietary claims?

A

Claims for money (not claiming the actual property back)

 Trustee might have possession of property, but it
still ‘belongs’ to the beneficiary

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2
Q

what are the options available in prop claim?

A

 Trustee bankrupt? Priority to beneficiary
 Trustee gives away property? Follow
 Trustee sells property? Trace, i.e. claim
proceeds of sale
 Value goes up? Can be claimed
So very useful if trustee goes bankrupt

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3
Q

what is a defence to prop claim?

A

bona fide purchaser for value without
notice of the breach are not liable in prop claim

  • In case of cass this wasn’t the case so would have been liable
    • But what If the liable person gives it to wife or kids - in prop claims you can follow the trail to get it back - if they give it to the wife for example she would receive it as a gift so wouldn’t be bona fide purchaser and would still be liable to claim the money from
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4
Q

what happened in the case of Eagle trust plc v SBC securities ltd?

A
  • Facts don’t support the knowledge
    • If person knows few facts but not enough to infer extent of the wrong doing
    • Can say they have constructive notice/ knowledge of the document, but doesn’t mean he had the appropriate knowledge at the time
    • Cases where they know little bit less so not liable for known receipt but might be liable for proprietary claim
      This way attractive as have to prove notice which is a lot easier to prove than knowledge
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5
Q

what happened in Re montagu’s settlement trusts (1987)?

A
  • 10th duke of Manchester, old school family wealth trust case of the dukes of Manchester
    • 10th gets lots of property from family trust
    • Not entitled to them absolutely and they should’ve been put back into a trust with his son as beneficiary
    • So possible claims in knowing receipt and property claim as he should’ve known about this family trust having benefitted from it
    • Son 11th duke sued fathers estate for lost property, 10th dead
    • If 10th had notice of trust its prop claim, if he had knowledge pf trust its known receipt claim
    • He knew little, left it to solicitor - solicitor has notice of the trusts but had forgotten about them
    • 10th duke replied on solicitor so didn’t know about these trusts - but solicitors notice imputes to client so 10th duke had notice of the trust
    • But no claim as he had already sold off all the valuable property
    • Bu not claiming for the property but its monetary value
    • But 10th duke didn’t have knowledge of trusts - looking at what he did know rather than what he should have known
    • Good case for illustrating what knowledge is, helps with unconciousability concept
      Turns out 10th duke estate not liable as when he was alive he didn’t know about trust and that he wasn’t allowed to sell property
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6
Q

what are the differences between prop claims and personal claims in knowing receipt?

A
Proprietary Claim
	 need Notice
	 Innocent dissipation 
         or passing on – no 
         liability
Personal Claim in Knowing Receipt
	 Knowledge
	 Higher standard of 
         awareness
	 Liability after the 
        property dissipated or 
        passed on
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