Property Law - Knowing Receipt and Dishonest Assistance Flashcards
What two cases suggest UE can run concurrently with KR claim?
Dubai Aluminium v Salaam; Re Esteem Settlement
Why would a UE claim be preferable for C if allowed concurrently with KR?
No need to prove fault
What case applied unconscionability and thus affirmed BCCI v Akindele?
Charter v City Index
Belmont Finance v Williams Furniture (No.2)
All on Baden scale counts, and dishonest not necessary
What are the two core duties of KR?
Core restorative duty immediately, or liable to account if dealt with property inconsistently
Farah v Say-Dee is from what jurisdiction and court?
High Court of Australia
In what case did Lord Hoffmann clarify Twinsectra?
Barlow Clowes v Eurotrust
What are the three types of constructive trustees?
Trustees de son tort, knowing recipients and dishonest assistants
What case stated D may have to account for both new property exchanged for misdirected property and any profits generated therefrom under KR
Grimaldi v Chalemeon Mining
Who explores the two remedial duties of KR?
Mitchell and Watterson
C had concurrent claims in UE and KR
Relfo Ltd v Varsani
Twinsectra v Yardley judgment
HoL, Lord Hutton accepted objective limb from Brunei but for subjective stated D needs to realise he is not acting as honest person
McCullough v Marsden general
Subrogation
What two cases suggested SC need to approve for UE to run concurrently with KR?
BCCI v Akindele; Farah v Say-Dee
Re Montagu’s Settlement general
Duke of Manchester, life interest but T gave him all and sold
Dubai Aluminium v Salaam
UK suggested UE can run concurrently with KR in obiter
Grimaldi v Chalemeon Mining
D may have to account for both new property exchanged for misdirected property and any profits generated therefrom
Who found Barnes v Addy and Baden, Delvaux led to ‘tortuous convulsions’ for DA?
Lord Nicholls in Royal Brunei v Tan
Ultraframe v Fielding on mental element of DA
D needs to have known T was not ‘entitled to do what he is doing’ for mental element of DA
What case states that as long as D took reasonable steps to preserve property, but lost/stolen/damaged before returned, no restorative duty for KR?
Evans v European Bank Ltd
Novoship (UK) v Nikitin suggests what
Suggests DAs liability can sometimes be primary as well
No change of position defence if D still in possession of asset purchased by benefit, to the extent that she is enriched by possession
Lipkin Gorman v Karpnale
What are the last two stages of knowledge in Baden, Delvaux v Societe Generale known as?
Constructive knowledge
B only has to show assistance made breach easier for DA causation
Grupo Torras v Al-Sabah (No.5)
Niru Battery Manufacturing v Milestone Trading GENERAL
‘Short of outright dishonesty’, ‘mere negligence’
What case showed KR is liable as if he were a real T?
Arthur v AG of the Turks and Caicos Islands
What case showed move to subjective test after Royal Brunei?
Twinsectra v Yardley
Barnes v Addy on state of mind of DA
Requires dishonesty
What kind of liability is under DA?
Fault-based liability
What case gives three things for KR liability?
El-Ajou v Dollar Land Holdings
Who finds the label ‘constructive trustee’ to be an empty relief formula?
Birks
Tuthill v Equine
If T has no duty to account to C for dealings, no liability can arise as about exceeding authority, not avoiding conflicts
Why did court not allow DA to be jointly liable for Ts profits in Ultraframe?
Would be punitive
What CT has two core duties - to restore immediately, or liable to account if property dealt with inconsistency and therefore cannot be restored?
KR
Property lost/stolen/damaged
Evans v European Bank Ltd
Catching money laundering activities by holding breach not fully implemented until funds hidden from B
Heinl v Jysk Bank
Name at least two cases on breach of fiduciary duty by T for KR test
Tuthill v Equine; Re Exchange Banking Xo; Bracken Partners v Gutteridge
What did the issues with Barnes and Baden lead to?
Objective test in Royal Brunei v Tan
What case stated dishonesty is not necessary for KR?
Belmont Finance v Williams Furniture (No.2)
Abou-Rahman v Abacha judgment
CoA applied objective test, playing along with Barlow Clowes
D’s assistance can play what kind of role for DA?
Either subsidiary or primary part of breach
What was insufficient in BCCI v Akindele for knowledge?
High interest rate
When is there no difficulty in remedy of DA?
Substitutitive performance and reparation
What was the test set down in BCCI v Akindele?
Does D’s knowledge make it unconscionable to retain the benefit
What case gives that if KR knows T will misapply property again if returned, no discharge of core restorative duty?
Blyth v Fladgate
What are the first three stages of knowledge in Baden, Delvaux v Societe Generale known as?
Actual knowledge
Relfo Ltd v Varsani general
Singapore bank money credit, debited from UK bank
How does the liability of KR differ from DA?
KR is liable IN HIS OWN RIGHT, as opposed to secondary liability for DA
What two academics argue UE MAY run concurrently with KR claim?
Birks and Lord Nicholls
What case shows that if T has no duty to account to C for dealings, no liability for KR can arise as about exceeding authority, not avoiding conflicts
Tuthill v Equine
Company directors owe duty to account to C for dealings under KR breach of fiduciary duty
Re Exchange Banking Co
What two tests did Lord Nicholls reject in Royal Brunei v Tan?
Criterion of knowledge and unconscionability
What case shows that liability for KR to account cannot be collapsed into law of wrongs/UE?
Green v Weatherill
Target Holdings v Redferns on remedy for KR
If liable for substitutive performance, clock does not stop - liable for value of property at judgment
BCCI v Akindele general
Nigerian, lends £10 million, £6.7 million profit
Why were DAs profits not liable to be accounted for in Novoship?
Not relevantly caused by wrongdoing - profit due to unexpected change in market
Why does causation in DA show break from usual philosophy of autonomy?
D can be liable for loss from primary wrong even without direct causal link
Ministry of Health v Simpson general
Strict liability of improperly distributed funds of deceased’s estate
Name at least one case on change of position defence
Lipkin Gorman v Karpnale; Niru Battery Manufacturing v Milestone Trading
DA cannot claim honesty by sheltering behind disreputable transaction
Agip (Africa) v Jackson
What are the five stages of knowledge in Baden, Delvaux v Societe Generale?
Actual, Nelsonian, naughty, reasonable man would have known and reasonable man would have been put on inquiry
Evans v European Bank Ltd judgment
if property is lost/stolen/damaged through no fault of D before it can be returned, and took reasonable steps to preserve, duty is discharged
What does CT mean for dishonest assistants?
Treating D through legal fiction as though they were T, fixing with same liability as T and derivative
Duke of Manchester, life interest but T gave him all and sold
Re Montagu’s Settlement
Strict liability of improperly distributed funds of deceased’s estate
Ministry of Health v Simpson
Name the case suggesting DA can be principally liable for own profits
Novoship (UK) v Nikitin
Lipkin Gorman v Karpnale judgment
No change of position defence if D still in possession of asset purchased by benefit, to the extent that she is enriched by possession
What CT do courts treat through legal fiction as though they were T, fixing with same liability as T and derivative
DA
What type of liability is in DA?
Civil secondary liability
When is a B likely to claim for DA or KR?
T is bankrupt and proprietary tracing claim has failed bc no property left
What case shows Bs cannot seek proprietary remedy (as opposed to personal) against D to reconvey legal title if he no longer HAS legal title?
Ultraframe v Fielding
Nigerian, lends £10 million, £6.7 million profit
BCCI v Akindele
Royal Brunei v Tan general
Tickets for airline companies sold by agents, holding money in trust for company, personal account
H&M on Barnes and Baden, Delvaux v Societe Generale
Sorry state of cases - general consensus required dishonesty but no overruling of pre-Baden cases not requiring dishonesty
What case showed a move from Baden in DA?
Royal Brunei v Tan
Daughter father trust sister
Green v Weatherill
Charter v City Index
CoA applied unconscionability and affirmed BCCI v Akindele
What judge turned to unconscionability to test knowledge of 3rd of breach for KR and in what case?
Laws LJ in BCCI v Akindele
Lipkin Gorman v Karpnale general
Asset purchased and enrichment therefrom
Twinsectra v Yardley general
Loan solicitor, purchase, no charge over home
What case gave three things to incur KR liability?
El-Ajou v Dollar Land Holdings
Morlea Professional Services v Richard Walter judgment
Bs can disavow Ts actions to accept Ds giving of property in lieu of original property, meaning D remains liable
Barnes v Addy
Not liable if D received property ministerially