Equity Ws9 Insolvency

Front 1

Quote: increasingly plaintiffs have recourse to equity for an effective remedy when the person is in default, typically a company, is insolvent

Back 1

Royal Brunei Airlines v Tan (1995)

Front 2

Company held money on trust for customers; certainty of intention inferred from advice and separate money; did not have to state expressly

Back 2

Re Kayford (1975)

Front 3

Cannot establish trust over some property not separated from the general stock; subject matter is uncertain

Back 3

Re London Wine

Front 4

Specific ingots not assigned to customers, all ingots traded in and out; no certainty of subject so trust failed; can declare trust over proportion but this didn't happen

Back 4

Re Goldcorp Exchange (1995)

Front 5

Settlor declared a trust over a proportion of shares successfully; OK where class of things are identical; distinguished Re London Wine because it is intangible vs tangible assets

Back 5

Hunter v Moss (1994)

Front 6

Two bank accounts; “customers” one OK but “urgent suppliers” failed for uncertainty of object

Back 6

OT Computers v First National (2004)

Front 7

A director may be personally liable if he is found to have failed to take all steps he ought have taken to protect creditors once he knows that liquidation is inevitable

Back 7

Insolvency Act 1986, s214

Front 8

Savings scheme for Christmas declared trust over account before insolvency; prepared to rectify error in trust deed; customer money already paid was creditor not Bennie money; money paid after was impossible to identify
Declaring a trust over existing customer cash in account means, because they were creditors first, it's an unlawful preference

Back 8

Re Farepak Food and Gifts (2006)

Front 9

Where money is loaned for an exclusive purpose:
a. Money is held on trust for this purpose (primary trust)
b. If applied for this, trust is finished and it is simply a debt
c. If purpose impossible, “secondary” resulting trust arises to return money

Back 9

Barclays Bank v Quistclose Investments (1970)

Front 10

Case where money paid into a general account still became the subject of a Quistclose trust

Loan from ex-employee to buy equipment partly refunded by equipment supplier

Back 10

Re EVTR (1987)

Front 11

Lender deemed the object of the Quistclose trust

Back 11

Twinsectra v Yardley (2002)

Front 12

The defendant was never free to deal as it pleased with the money

Back 12

Carreras Rothmans v Freeman Matthews (1984)

Front 13

Solicitors undertaking that D would use all reasonable efforts to purchase a specific property created a Quistclose trust with the money

Back 13

Templeton Insurance

Front 14

Romalpa:
a. A sold foil to B for industrial use, on 75 days credit
b. Retention of title clause said that resale was OK if B accounts for the proceeds of the sale
c. Some was sold on but B went insolvent
d. To trace in equity there must be a fiduciary relationship
e. Held that B is an agent for A, so tracing allowed

Back 14

Romalpa (1976)




re Hallet's Estate

Front 15

a. Resin sold to another company was mixed with things to make chipboard.
b. No Romalpa clause giving rights over finished item or proceeds of sale.
c. Resin used and no longer existed
d. No tracing and no fiduciary relationship

Back 15

Borden v Scottish Timber (1981)