Liability of strangers to the trust

Question 1

What are the two ways of secondary liability

Answer 1

1) dishonest assistance

2) knowing receipt

Question 2

What is accessory liability (dishonest assistance)

Answer 2

This is a claim for the loss caused as well as any profits against a third party

To establish:
Must show they assisted with the breach. They must also have acted dishonesty- objective test.

Question 3

What is recipient liability? (knowing receipt)

Answer 3

This allows the claimant to receive the money the third party beneficially received

This can be used where the third party has knowledge making it unfair to keep the funds.