Flashcards in Property Law - Equity, Trusts and Powers Deck (87):
Who argued equity became a 'systemic body of principles as refined, rigorous and ultimately unyielding as anything produced by the common law'?
What did Hackney say about equity?
Became a 'systemic body of principles as... unyielding as anything produced by the common law'
Section 49 Senior Courts Act 1981
Rules of equity prevail
What section of what Act states the rules of equity shall prevail?
Section 49 Senior Courts Act 1981
Does equity act in personam or in rem?
What case gives five requirements for a document to create a trust?
Williams v Central Bank of Nigeria
What are the five requirements for a doc to create a trust?
Shows with reasonable certainty the intention to create the trust, separation of property, identity of the trust property, the beneficiaries and the purpose of the trust
Williams v Central Bank of Nigeria gives five requirements for what?
For a document to create a trust
What case gives the 'given postulant' test?
McPhail v Doulton
What is another name for the 'given postulant' test?
Is or is not test
OT Computers v First National ratio
'Urgent suppliers' invalid description of beneficiaries
What case gave that 'urgent suppliers' was an invalid description of beneficiaries?
OT Computers v First National
McPhail v Doulton validated what description of beneficiaries?
Relatives and dependents
R v District Auditor, ex p West Yorkshire ratio
'The inhabitants of the county of West Yorkshire' was too large for a DT
What case gave that 'the inhabitants of the county of West Yorkshire' was too large for a DT?
R v District Auditor, ex p West Yorkshire
Re Manisty's Settlement ratio
'Such... persons as the trustees think fit' was a valid description of beneficiaries
What case gave that 'such... persons as the trustees think fit' was a valid description of beneficiaries?
Re Manisty's Settlement
Who gave the reasoning for the given postulant test in Morice v Bishop of Durham?
What did Lord Eldon say of the given postulant test in Morice v Bishop of Durham?
It is important to know who the beneficiaries are because they are the only one who can enforce the T
What case stated that the use of imperative words is required for intention of a trust, but no need to use the word 'trust'?
Wright v Atkyns
Wright v Atkyns on intention
Need to use imperative words but no need to use the word' trust'
Lamb v Eames on intention
If a trust fails for lack of intention, T receives a gift of the property instead
Which case stated the effect of a trust failing for intention?
Lamb v Eames
What case stated that if a trust fails for lack of intention, T receives a gift of the property instead?
Lamb v Eames
Palmer v Simmonds on subject matter of a trust
'The bulk of my residuary estate' was sufficiently certain
What case stated that 'the bulk of my residuary estate' was sufficiently certain for subject matter of a trust
Palmer v Simmonds
Hunter v Moss on subject matter of a trust
5% of shares in my company was sufficiently certain
What case found that 5% of shares in my company was sufficiently certain for subject matter of a trust?
Hunter v Moss
Name two types of trusts for persons
Fixed and discretionary
Name two types of trusts for purposes
Private and charitable
Name two types of trusts by law
Resulting and constructive
Name two types of powers
Fiduciary and mere/bare powers
Re Gulbenkian on fiduciary powers
Trustee needs to carefully consider the choice of object before they exercise their discretion
What type of power does not require careful consideration?
In the case of what power is there no ability to appoint outside the class of objects?
Klug v Klug on duties of power-holders
No exercise of discretion so Court did it in daughter's favour
Klug v Klug
Re Manisty's settlement on duties of power-holders
Court can intervene if Trustees don't consider a request from a potential beneficiary, or they act capriciously
In what case did the court decide they will intervene if the trustees do not consider a request from a potential beneficiary, or they act capriciously?
Re Manisty's Settlement
Mettoy Pension Trustees v Evans on duties of power holders
Trustees are under a duty to select beneficiaries from a class and decide distribution of trust property
Which case stated that trustees are under a duty to select Bs from a class and decide distribution of trust property
Mettoy Pension Trustees v Evans
Schmidt v Rosewood Trust on duties of power-holders
Right to seek disclosure of trust documents does not depends on the right or claim of a B to a proprietary interest in the trust property
Which case stated that the right to seek disclosure of trust documents does not depend on B having a proprietary interest in the trust property?
Schmidt v Rosewood Trust
Which Convention is clearly influenced by English trusts?
Who and in what case regarded equity and common law as running 'side by side' but do not 'mingle their waters'?
Lord Diplock in United Scientific Holdings v Bunley BC
United Scientific Holdings v Bunley BC per Lord Diplock
Equity and common law run 'side by side' but do not 'mingle their waters'
Who declared Diplock's statement in United Scientific Holdings as 'mischievous and deceptive'?
Who believed the Judicature Acts 'did not effect a major substantive merger of law and equity'?
What did Maxton say of the Judicature Acts?
They 'did not effect a major substantive merger of law and equity'
Who 'strongly preferred' the fusion school of thought for E and CL?
Why did Burrows strongly prefer the fusion school of thought?
'Importance of coherence in the law'
What four categories did Burrows divide English private law into?
E and CL cannot be distinguished; E and CL exist coherently; E and CL exist coherently but nothing is gained so fusion; and they do not coexist, so need to change law to combine both
What did Hayton and Mitchell say of the second category of English private law per Burrows?
Even committed fusionists like Burrows still find it useful to refer to jurisdictional origins, e.g. in the case of trusts, to distinguish between E and CL
Who stated that it is 'universally acknowledged that... there is no true or conclusive definition of a trust'?
what did Hayton state about the definition of a trust?
There is no true or conclusive definition
How did Hayton believe we could define trusts?
Look at 'certain core characteristics to distinguish them from other legal concepts'
Who believed we could define trusts by looking at 'certain core characteristics'?
Why did Hayton state it to be important that S usually 'drops out of the picture' in an express trust?
Distinguishes between contracts and trusts
How does the fact that S usually 'drops out of the picture' distinguish a trust from a contract?
S usually WANTS to dispose of their rights, and their motive may be to place the asset beyond the reach of actual/potential creditors
What three advantages do Hayton and Mitchell give of a DT?
Allows flexibility for future decisions, creditors will not generally have access to the trust fund and limited tax liability to beneficiaries
How have P encroached on the limited tax liability of beneficiaries under a DT?
Levied certain charged on inheritance through lifetime trusts since 2006
What four examples show S's influence over the trust, after initial set-up, may be exaggerated?
Saunders v Vautier, B can 'adopt the investment' if T sells without permission, rules against perpetuities and general rules prohibiting S (e.g. private purpose trust)
Who gives two problems with the analysis that creating a trust involves S transferring legal title to T and equitable to B?
Hayton and Mitchell
What two problems do Hayton and Mitchell give with the analysis that creating a trust involves S transferring legal title to T and equitable to B?
HoL have rejected that S's initial property has both a legal and equitable title (Westdeutsche v Islington) and creation of aa trust need not involve fragmentation of the property (Smith v Anderson)
Westdeutsche v Islington ratio
HoL rejected that S's initial property has both a legal and equitable title
In what case did the HoL reject that S's initial property has both a legal and equitable title?
Westdeutsche v Islington
In what other areas is the decision in Westdeutsche v Islington problematic?
RTs - cannot say S 'retains' a pre-existing equitable interest in the property
Burgess v Wheate ratio
If T no longer owes a duty to anyone, T can use the property for her own benefit
in which case did the court decide that if T no longer owes a duty to anyone, T can use the property for her own benefit?
Burgess v Wheate
What are the three duties of a trustee?
Comply with terms of the trust, fiduciary duty to act exclusively in the interests of B and take reasonable care in exercising powers
If T does not comply with terms of the trust, what can B do?
Bring a claim for 'substitutive performance'
Given that the standard fiduciary duty imposed on trustees is quite strict, what can trust documents do?
Implement more relaxed standards
Although trust documents can implement more relaxed fiduciary duty standards, what case gives a limit on these standards?
Armitage v Nurse
What did Millett LJ in Armitage v Nurse say?
There is an 'irreducible core of obligations... fundamental to the concept of a trust' - if B has no 'rights enforceable against T, there is no trust'
Who said that there is an 'irreducible core of obligations... fundamental to the concept of a trust'?
Millet LJ in Armitage v Nurse
Why is the irreducible core of obligations crucial to the existence of trusts, according to Ermitage v Nurse?
If B has no 'rights enforceable against T, there is no trust'
The reasonable care to be taken in exercising trustee powers is no different to what other test?
The basic rules applying to a standard negligence claim in contract/tort
Bristol and West BS v Mothew ratio
Reasonable care in exercising trustee powers is no different to the basic rules applying to a standard negligence claim in contract/tort
What case highlighted that the reasonable care in exercising trustee powers is no different to the basic rules applying to a standard negligence claim in contract/tort?
Bristol and West BS v Mothew
What does The Restatement Principle state about trusteeship?
'A trust will not fail for want of a trustee'
What states that a 'trust will not fail for want of a trustee'?
The Restatement Principle
Schmidt v Rosewood on the power to supervise
Power is 'fundamental'
Red Baden's Deed Trusts (No.2) on power to supervise
May apply even in a DT
What case stated that the power to supervise is 'fundamental' to the trust concept?
Schmidt v Rosewood
What case suggested the power to supervise may even apply in a DT?
Re Baden's Deed Trusts (No.2)
What is a disadvantage of the fact that the trust is depersonalised?
Law does not distinguish between Ts personal and trustee debts