Large Group 9

Question 1

What is an injunction?

Answer 1

An injunction is a court order that is personal to the defendant. It can either require the defendant to do something (mandatory injunction) or refrain from doing something (prohibitory injunction). If the defendant fails to comply, they are in contempt of court, which can result in a fine or imprisonment.

Question 2

Under which statute is the court’s power to grant injunctions conferred?

Answer 2

The court’s power to grant injunctions is conferred by Section 37 of the Senior Courts Act 1981, which allows the High Court to grant injunctions in all cases where it appears to be just and convenient to do so.

Question 3

What are the different types of injunctions?

Answer 3

There are two main types:

• Prohibitory injunction: Orders a party to refrain from doing something.
• Mandatory injunction: Orders a party to do something.

Question 4

What is the difference between interim and perpetual injunctions?

Answer 4

Interim injunction: A temporary measure that lasts until a full trial can be held.

Perpetual injunction: The final order made after a full trial of the case.

Question 4

What is an injunction without notice?

Answer 4

An injunction without notice (also called an ex parte injunction) is granted in an emergency without notifying the defendant. It is typically used to prevent imminent harm, such as in cases involving domestic violence.

Question 5

What is a quia timet injunction?

Answer 5

A quia timet injunction is granted where the claimant fears that their rights will be infringed in the future. The claimant must meet a high burden of proof to show that the infringement is likely to occur.

Question 5

When would damages be considered an inadequate remedy, justifying an injunction?

Answer 5

Damages are considered inadequate when:

The harm is ongoing, making damages difficult to quantify.

The defendant may not have the financial means to pay damages.

Question 6

What is the court’s discretion regarding injunctions?

Answer 6

The court has discretion in awarding injunctions, particularly in cases involving mandatory injunctions, which are less likely to be granted due to their potentially severe impact on the defendant (e.g., demolishing houses built in breach of a restrictive covenant).

Question 7

What are equitable bars to granting an injunction?

Answer 7

Futility: The court will not grant an injunction if it would be pointless (e.g., where information has already been published).

Delay or acquiescence: If the claimant delayed unreasonably or acquiesced in the infringement, they may be barred from obtaining an injunction.

Question 8

What is the clean hands principle in relation to injunctions?

Answer 8

The clean hands principle requires the claimant to act fairly and in good faith. If the claimant has engaged in unfair conduct, they may be denied an injunction.

Question 9

What are damages in lieu of an injunction?

Answer 9

Under Section 50 of the Senior Courts Act 1981, the court can award damages in lieu of an injunction where granting the injunction would be oppressive or where damages would adequately compensate the claimant.

Question 10

What are the four conditions for awarding damages instead of an injunction, as set out in Shelfer v City of London Electric Lighting Co?

Answer 10

The four conditions are:

• The injury to the claimant’s rights is small.
• The injury is quantifiable in monetary terms.
• The injury can be compensated by a small monetary payment.
• It would be oppressive to grant an injunction.

Question 11

What was the significance of Coventry v Lawrence regarding the court’s discretion on damages in lieu of an injunction?

Answer 11

Coventry v Lawrence confirmed that the guidance from Shelfer should not fetter the court’s discretion. While the Shelfer test can be useful, the court must ultimately decide based on the facts of the case.

Question 12

What are the possible remedies against “strangers” to the trust?

Answer 12

Remedies against strangers include:

1. Dishonest assistance: When a stranger dishonestly assists in a breach of trust.
2. Knowing receipt: When a stranger receives trust property knowing it was transferred in breach of trust.
3. Intermeddling: When a stranger acts as if they were a trustee and misapplies trust property.

Question 13

What is dishonest assistance, and what are its elements?

Answer 13

Dishonest assistance is a personal claim against a third party who assists in a breach of trust or fiduciary duty.
The elements are:

1. A breach of trust or fiduciary duty.

2.The stranger assists the breach.

3. The stranger acts dishonestly.

Question 14

What was the key ruling in Royal Brunei Airlines v Tan regarding dishonest assistance?

Answer 14

In Royal Brunei Airlines v Tan, the court held that dishonesty is judged objectively, meaning the stranger is liable if they did not act as an honest person would in the circumstances, regardless of their subjective intent.

Question 15

What is knowing receipt, and what are its elements?

Answer 15

Knowing receipt is a claim against a stranger who receives trust property transferred in breach of trust. The elements are:

1. The trustee transfers property in breach of trust.
2. The stranger receives the property for their own benefit.
3. The stranger has knowledge of the breach, making it unconscionable to retain the property.

Question 16

What is intermeddling, and when does it arise?

Answer 16

Intermeddling arises when a person who is not a trustee performs actions characteristic of a trustee and misapplies trust property. This person is treated as a trustee and can be held liable for any losses.

Question 17

What is the role of a proprietary claim in cases involving strangers to the trust?

Answer 17

A proprietary claim can be brought against a stranger who holds trust property or its traceable substitute. If the stranger still holds the property, beneficiaries may recover it through equitable tracing rules.

Question 18

What is a bona fide purchaser, and how does it affect a proprietary claim?

Answer 18

A bona fide purchaser for value without notice is someone who purchases trust property in good faith without knowing it was trust property.

A proprietary claim cannot be brought against such a purchaser, but beneficiaries can sue the trustee and claim the sale proceeds.

Question 19

What is the relevance of the case Attorney General v Observer Ltd in the context of injunctions?

Answer 19

The case of Attorney General v Observer Ltd illustrates that equity will not act in vain. The court refused to grant an injunction to stop publication of information in British newspapers because the information had already been published in the United States. This demonstrates that the court will not grant an injunction if the act would be futile.

Question 20

What is the clean hands doctrine, and how does it apply to injunctions?

Answer 20

The clean hands doctrine requires that a claimant seeking equitable relief, such as an injunction, must have acted fairly and without deceit in relation to the claim. If the claimant has acted improperly, the court may deny their request for an injunction.

Question 21

When can damages be awarded instead of an injunction under Section 50 of the Senior Courts Act 1981?

Answer 21

Under Section 50 of the Senior Courts Act 1981, damages may be awarded instead of an injunction if the court considers it just and appropriate. This usually happens in cases where awarding an injunction would be oppressive or where the claimant’s injury is small, quantifiable, and can be adequately compensated with money.

Question 22

What is intermeddling, and how is it treated in the context of breaches of trust?

Answer 22

Intermeddling occurs when someone who is not a trustee performs actions characteristic of a trustee and misapplies trust property. The person is treated as a trustee de son tort (constructive trustee) and can be sued for losses caused by their actions.

Question 23

What constitutes a personal claim for knowing receipt?

Answer 23

A personal claim for knowing receipt arises when a stranger receives trust property in breach of trust or fiduciary duty and knows or later acquires knowledge of the breach. The recipient is liable to return the property or pay compensation once they are aware that they are holding trust property wrongfully.