Tracing Flashcards
Banque Belge v Hambrouck
Thief paid stolen money into girlfriend’s account. It was capable of being traced despite being in general account.
Lipkin Gorman v Karpnale
Partner of firm gambled with company money. Tracing was possible.
Jones & Sons v Jones
Partner used company money to make investments, wife received profits, held that the profits could be traced as well as the original money.
Chase Manhattan Bank v Irael British Bank
D was aware of the double mistaken payment and so retained an equitable interest in it.
Foskett v McKeown
Beneficiaries contribution must be somewhere in mixture, therefore the beneficiaries were entitled to identify any proportionate part of the mixture as their property.
Roscoe v Winder
Lowest intermediate balance, right to trace into a mixed fund does not affect that part of the fund that comprises later payments, that is, payments into the mixed fund after the misappropriation by the trustee.
Bishopgate Investment v Homan
Backward tracing - generally not allowed unless it can be shown that the loan was taken with the intention of paying it back with trust money.
Space Investments v Canadian Bank
Loss of right to trace where payments were made into an overdrawn account, if money can’t be traced to any specific assets there is no right to trace. However in this case the Privy Council held that claimant could secure charge over the whole assets of the defendant.
Serious Fraud Office v Lexi Holdings
Overruled Space Investments v Canadian Bank.
Re Diplock
Loss of right to trace where property is destroyed.
Scottish Equitable v Derby
For change of position defence, causal link between receipt and change of position must be proved.
Phillip Collins v Davis
Change of position available only where the defendant acted in reliance upon the validity of the receipt of the claimant’s property.
Extra Bank and Trust v Bank of Jamaica
Change of position is not available to a wrongdoer defendant.
Commerzbank AG v Price-Jones
Change of position defence is not limited to defendant’s disposal of money or property of the claimant (defendant gave up job in reliance upon receipt)
Taylor v Plumer
Stockbroker used money intended for bonds to buy investments and bullion. Investments were still ascertainable products of the original money, form changing made no difference.
