Remedies against 3rd parties

Question 1

What is intermeddling?

Answer 1

When a 3rd party not expressly appointed as trustee acts as a trustee, he will be personally liable for any losses caused by his actions

Question 2

3 elements of knowing receipt

Answer 2

1. 3rd party received property in breach of trust,
2. 3rd party received that property for his own benefit, and
3. while in receipt of the property, he had knowledge making it unconscionable to retain/deal with the property as if it was his own

Question 3

What defence does an innocent volunteer have to a proprietary claim?

Answer 3

If he used the trust money to improve property he already owns, the trust’s interest cannot be traced into that improvement

Question 4

3 elements of dishonest assistance

Answer 4

1. there was a breach of trust,
2. the 3rd party assisted in the breach,
3. the 3rd party acted dishonestly

Question 5

Test for dishonesty

Answer 5

Whether an ordinary honest person with the same attributes would’ve acted differently, having the same knowledge