Remedies Against Third Parties Flashcards
What are the three different third party claims?
Intermeddling
Knowing receipt
Dishonest assistance
What is Intermeddling?
Third party, who is not a trustee, acts as if they were
What is knowing receipt?
This is an equitable personal recipient liability
Third party is at fault.
If the third party received property in breach of trust
The third party received the property for their own benefit
The third party had such knowledge that it makes it unconscionable for them to retain or deal with the property as if it were their own
What is knowing receipt?
This is an equitable personal recipient liability
Third party is at fault.
If the third party received property in breach of trust
The third party received the property for their own benefit
The third party had such knowledge that it makes it unconscionable for them to retain or deal with the property as if it were their own
What are examples of knowing receipt?
They know the property belongs to a trust
They wilfully shut their eyes to the obvious
They deliberately do not ask any questions, because they have their suspicions
Who can you NOT bring an equitable proprietary claim against?
A bona fine purchase, who paid for the property and had no idea it belonged to a trust.
Can you claim equitable propertiary claim to an innocent volunteer?
Yes. If the third party had NO KNOWELDGE fo teh reach of trust, but provided no consideration for the transfer of property, then a proprietary claim can still be brought.
The tracing rules are kinder though.
What are the wrongdoing tracing rules?
These are the tracing rules that are used if the third party is guilty of recipient liability.
Beneficiaries can ascertain teh original trustee prperty
If clean substitution can get this
If mixed, can asset claim against this.
Re Hallet and Re Oatway used
What are the innocent tracing rules?
They are kinder.
Can still claim the property, can still claim through clean substitution. Can assert claim on mixed property.
However, if mixed with innocent partys own money, Claytons Case and Barlow Clowes is used to see what can be traced.
If teh innocent volunteer used the money to improve property, you cannot trace.
What is dishonest assistance
If a third party assisted the trustee in the commission of the breach.
Third party must have acted dishonestly.
Must be a positive act of some kind. Being passive is unlikely to be sufficient.
