Trust Cheat sheet - Sheet1 Flashcards
(141 cards)
1
Q
Case Name
A
Principle
2
Q
Crabb v Arun
A
PE allowed if supported by later conduct that is unequivocal - Words of conduct
3
Q
Bibby v Sterling
A
Acquiescence PE - Must it have been obvious when action was made that they thought they had a
proprietary claim
4
Q
Thorner v Major
A
Should be considered on the relationship of the two parties - retrospective context
5
Q
Common Expectation
A
consistent dealing, reasonable expectation
6
Q
Imperfect Gift
A
Intimate relationship, legitimate expectation. Unconscionable not to perfect
7
Q
Acquiescence
A
Acting to detriment in mistaken belief of interest
8
Q
Re Hay’s
A
trustee not bound to exercise mere power
9
Q
Paul v Constance
A
no need for explicit words or even knowledge - common intention
10
Q
Sprange v Barnard
A
Money left divided between beneficiaries is seen as gift not trust binding on the donee
11
Q
Mussorie Bank v Raynor
A
Intention and Subject should be examined together as a serious settlor would be precise
12
Q
Boyce v Boyce
A
Conditions that now can’t be met by one beneficiary can extinguish gift to other beneficiaries
13
Q
Lehman Bros
A
Need for property to attach to
14
Q
Re Golay’s Will Trusts
A
Sufficient certainty - reasonable income was found to be certain enough - “effective determinant”
15
Q
Re Tuck Settlements
A
Trust can become certain if someone is appointed to decide on the beneficiary
if the appointed person is ready and willing to resolve the doubt or difficulty
16
Q
Re London Wines
A
Segregation in order to be certain of assets - Wine bottles not certain. Which Wine bottle??
17
Q
Re Goldcorp Exchange
A
Even where assets are identical, they must be segregated
18
Q
Hunter v Moss
A
Are shares truly fungible - Same Class of Shares, Same company
19
Q
Palmer v Simmonds
A
Bulk of Residuary - uncertain
20
Q
Re Osoba
A
Purpose when gift is given to beneficiaryis treated as merely a statement of the testator’s motive in
making the gift
21
Q
Re Astor
A
Purpose Trust - Not supported if not charitable
22
Q
Re Endacott
A
Non Charitable Purpose trust - Limited - Useful Memorial
23
Q
Re Denley
A
Purpose Trust - Indirect benefit of indidual(s) - Question of facts - justifiability
24
Q
Re Hooper
A
Maintenance of Graves - Allowed - must not interfere with perpetuity
25
General principle on pets
Pets usually not allowed - Enforceability
26
Pettingall v Pettingall
Maintenance of Horse was allowed - legatee could enforce
27
Re Dean
Re Dean - Allowed for horse - Because residuary afterwards would be dealt with on discretion
- therefore beneficiary - enforced by Re Thompson Fox Hunting case
28
Re Coulthurst
Relief of Poverty - persons who have to go short - widowed women and orphans s3(1) CA
29
Re Compton
Relief of Poverty
30
Re Shaw
Increase in knowledge not object unless alongside education or teaching
31
Re Gulbenkian's
matter of construction whether the power is a mere power or a trust power and the use of inappropriate
language is not decisive'.
Common sense approach to intention
Any given individual - is or is not part of the class test
32
Morice v Bishop of Durham
Beneficiary Principle
33
Re Benjamin
Benjamin Order - remedy for uncertainty of object
Other remedies include:
Missing beneficiary insurance: Evans v Westcombe [1999] 2 A11 ER 777.
Seek indemnity from other bfs
Pay bf’s share into court
34
Re Baden
any employees or relatives - sufficiently certain
is there conceptual uncertainty - reinforced is or is not test but could not be applied the exact same way as Gulbenkian
35
Contrast certainty of object cases
Re Sayer - Empowered to make payments - X
Re Saxone - Discretion be applicable - Yes
Disposition for employees
36
R v District Auditor
All or some inhabitants - void, unworkability - Meaning clear but far too wide
37
McPhail v Doulton
Is or is not - distinguished between conceptual uncertainty
38
Taylor v Taylor
Must be Evidenced in writing, not necessarily be made in writing
39
Parker
Not applicable to constructive or resulting
40
Rochefoucauld
Can be used as evidence of fraud
41
Grey v IRC
Oral disposition void for want of writing
42
Hudson v Hathaway
Email acceptable
43
Akers v Samba
Bonafide Purchaser
44
Re Rose
If donor has done all in their power, equity will complete the transfer - Constructive trust
45
Re Lysaght
Trust will not fail for want of a trustee
46
Milroy v Lord
Must Complete legal requirements to transfer, equity will not perfect an imperfect gift
47
Pennington
Equity will complete if unconscionable not to do so
48
Paul v Constance
Self declaration of trust
49
Musset v Bingle
Life + 21 years
50
Statutory - Perpetuities and Accumulation Act 2009
125 Years
51
Re Hooper
As long as the law permits - allowed
52
Pirbright v Salwey
As long as the law allows - allowed
53
Re Beloved Wilkes Charity
No duty to give reasons for exercises of discretion
54
Scott v National Trust
Duty to act in good faith
Inform themselves - take advice but not delegate discretion to anyone else, not even an expert
55
Re Hays
Duty to consider exercising power, but no duty
56
Luke v South Kensington
Unanimous
57
Grand View Private Trust Co Ltd v Wong
Not be used for improper purpose
58
O'Rourke
Duty to show beneficiaries trust documents
59
Re Beloved Wilkes Charity
No duty to give reasons for exercises of discretion
60
Re Londonderry
Can redact or withhold if the documents might show their reasons
61
Bartlett v barclays
Higher Duty of care imposed on experts than the ordinary statutory duty, Trustee Act 2000
62
Sch 2(7) TA 2000
Settlors can limit duty of care or relieve
63
If trustee has a trust power they have a duty
Duty to exercise discretion
64
Barclays v Quistclose
Primary and secondary - First for borrower Second for the lender - Discouraged widely
65
Cooper + Carreras
Both give support to a purpose trust view
66
Carreras - Gerard McCormack
Criticised as it ignores provision of preference under s239(4)(b) Insolvency Act Acts done within 6 months of insolvency are invalidated if they have the effect of giving preference to creditors
- However, Payments made under pressure were not held invalid as pressure removes intention to prefer
67
Twinsectra
Millet Resulting Trust for the benefit of the lender - No intention to create a trust where typically you are searching for an intention,
previously suggested it could be an express trust.
Seemingly applies that the priority crediting in the case of administration is the
subject of the trust
Borrower has power or duty to apply the money according to the lenders instructions. Lender is settlor and beneficiary in the situation?
68
Nathalie Koh Jia En Critique on Millets view
Lowers the threshold for finding intention to retain beneficial interest and fails to accurately locate the beneficial interest
69
Millet's comparison to the resulting trust
Millet likens the resulting trust to a 'retention of title' (Romalpa) clause, money is still owned by the lender but the beneficiary has use of it only so far as its
necessary for the purpose. Not a positive intention to retain interest but a negative intention to not give up the interest
70
Lady Arden on quistclose
Fusionist - Dont fall neatly into any
71
What rivals Trust relationship
Loan Contraact rivals trust relationship
72
Solicitors for quistclose
Solicitors involved - You would hope the word trust is included - Intention is more clear
73
Prickly Bay
No segregation, High Interest Rate - Arden suggests other legal relationship
74
s214 Insolvency Act
discretion to declare that a director is liable to make a contribution to the company's assets where the company has gone into insolvent liquidation
75
Arguments for Mandatory registration of trust
Willingness of lender to make loans
Chilling effect for businesses that rely on lending
76
ARguments Against
Too Many transactions get caught
77
Penn v Lord Baltimore
Court can order specific performance
78
American Cyanamid v Ethicon
Court can grant injunction - violated patent
79
Lawrence v Fen Tigers
Damages in lieu awardable
80
Recission
Mistake - Pitt
Voluntary Dispositions
Misrepresentations - Damages in lieu of recission
81
Davies v Ford
Substitutive and Reparative compensation allowed - Substitutive is controversial
82
AIB + Brudenell
support for reparative comp. Substitutive support depends on interpretation
83
Bartlett
Consequential gain can offset consequential loss
84
Defences to personal claims
Exclusion clauses
Consent/Waiver
s61 Trustee Act 1925 - honestly, reasonably and ought fairly to be excused
Wholly or partly
85
Armitage v Nurse
Court has discretion on limitation clauses
86
Re Paulings
Requires free consent from beneficiaries
87
Extinguishing Personal Property Interest
Terms of trust
BFP - Papadimitriou
88
Extinguishing Land Interest
Overreaching s2 LPA
Registrable Disposition s29 LRA 2002
89
Tracing is possible in
Sufficient connection to property
Simple Substitutions
Sales
Insurance Policies
90
SGA s17 and 18
Title of property often passes before payment
91
Sales - Serious Fraud Office v Hotel Portfolio II
Can trace into property bought using breached trust money
92
Foskett v McKeown
Can trace into life insurance and then the payout where payments are made with trust money in breach of trust
93
Brazil v Durant
Generally no backwards tracing unless 'close transactional link'
94
Relfo v Varsani
Or if they were transferred on the basis that trust funds would replace assets
95
Re Hallet
Expenditure can be treated as trustees and money remaining can be traced into
96
Re Oatway
Expenditure can be treated as trust money and can trace into the asset bought
97
Cherrypicking
Choosing whether to apply Oatway or Hallet
98
Roscoe v Winder
the claimants cannot claim for more than the lowest balance in the account at any point of time
99
Clayton's case
First in First out when two beneficiaries are involved
100
Byers v SNB
requirement of continuing proprietary interest - Remedy is as if the D was a trustee
101
Akindele
Sufficient degree of culpability - unconscionable
102
Agip
For their own use or benefit
103
Williams v Bank of Nigeria
Remedies unclear except for obiter - seems to restore assets
104
Royal Brunei v Tan
Breaches legal duty - culpability is unnecessary
105
Requirement for Dishonest assistance
Defendant dishonestly assists
106
Brinnks v Abu Saleh
Not nominal assistance
107
Group Seven v Notable Services
Make it easier than it would have been
108
Novoship
Remedy = disgorge them of profits
109
Ottaway v Norman
Intention to create an obligation
Communication of intention
Acceptance of that obligation
110
Blackwell
Outside the wills act
111
Re Snowden
Outside the will
112
Constructive Trust
Action + Reliance
OR
113
Express Trust
Intention not expressed in will format (s9 Wills Act) + Fraud = Trust
114
Blackwell
Goes against
115
McCormick
Fraudulent to go against the will, Fraudulent if the trustee of the secret trust goes against the wishes of the settlor
116
Vandervell
Presumed - Circumstances where transferror did not intend to make a gift
Automatic - Dispositive provisions in trust fail
117
LPA s60(3)
Conveyance shall not be merely implied
118
Stack v Dowden
Family home determined on Constructive Trust
119
Equality Act s199
Presumption of advancement is abolished - husband making gift to wife if transfers property
120
Tinsley v Milligan
Not relying on illegality but merely the presumption
121
Mirza
Does denying the claim furtehr the purpose of fraud
Public Policy interest
Proportionality
122
Westdeutsche
transferor intended the transferee to become absolute owner. The bank could only recover its money with simple interest as it only has a personal claim.
123
Re Rose
Once a trustee has done everything they are required to do
124
Pallant v Morgan
co-operative acquisitions. Constructive trust arises and held for both parties
125
Fraud - Bailey v Angove
Fraudster holds property on CT for the victim - provides following and tracing remedies - proprietary
126
Westdeustche
Stolen money is traceable in equity
127
Polly Peck
Remedial - award for legal action held on CT
128
Judicature Acts
Administrative Fusion
129
way forward
Substantive Fusion
130
Maxim on intention
Equity looks to the substance (intention) rather than the form
131
maxim on law
Equity Follows the law
132
maxim on priority
Where equities are equal the first in time prevails
133
Maxim on illegality
He who comes into equity must come with clean hands
134
Maxim on constitution
Equity looks on as done that which ought to be done
135
Penn v Lord Baltimore (1750) 1 Ves.Sen. 444
Equity acts in personam
136
Maxim on voluntary
Equity will not assist a volunteer
137
Subrin
Equity "fills in the gaps" of common law
138
In equity,
Promises binding without the need for consideration
139
Atiyah
Needless to have two complex doctrines where both operate to bind agreements and promises
140
Millet
seek the same result... but do not... draw the lines in the same place
141
Judicature Acts
Common law was to say the law had its roots in the common law courts/ Equity has its roots in the courts of chancery
Merge the courts
