Equity Ws7 Proprietary Claims Against Fiduciaries

Front 1

The “No Mixing” case
i. Bennie can claim ownership of the new asset or:
ii. Bennie can take a charge (equitable lien) over the asset for the amount of the loss

Back 1

Re Hallet's Estate (1880)

Front 2

Mixed Asset Purchase cases (asset part paid by trust fund)
Bennie can elect either to:
a. Take a proportionate share of the new asset relating to share of price
b. Enforce a lien or charge over the asset for the amount taken

Back 2

Foskett v McKeown (2001)

Front 3

“Lowest intermediate balance rule” - Bs cannot claim anything beyond lowest balance account fell to after trust funds mixed with it

Back 3

Roscoe v Winder (1915)

Front 4

FIFO rule: For two trusts tracing assets that are mixed and part dissipated, the first paid in Is the first paid out

Back 4

Clayton's Case (1816)

Front 5

Exception to the FIFO rule if:
i. Where it would be impractical to ascertain the order of payments
ii. Where it would result in injustice
iii. Where it would be contrary to the parties' intentions

Back 5

Barlow Clowes v Vaughan (1992)

Front 6

Common law tracing – right ceases when it can't be ascertained, e.g. when property is turned into money and mixed with other funds

Back 6

Taylor v Plumer (1815)

Front 7

Common law tracing breaks down where you can't follow a physical asset – a cheque is OK, but electronic transfer breaks it

Back 7

Agip v Jackson (1990)

Front 8

Senior employees may also owe fiduciary duties, especially if they control company funds

Back 8

Agip v Jackson (1990)

Front 9

A mistaken payment gives rise to a fiduciary relationship

Back 9

Chase Manhattan Bank (1979)

Front 10

Qualification to Chase Manhattan: Mistaken payment only creates a trustee if T's conscience is affected – recipient has to be aware of it.

Back 10

Westdeutsche Landesbank (1996)

Front 11

Obiter – a theft gives rise to a constructive trust in favour of the victim

Back 11

Westdeutsche Landesbank (1996)