Quistclose trusts: A high threshold of facts

Recent case law has confirmed that Quistclose trusts do not override commercial practice. Professor Sukhninder Panesar explains The mere fact that the monies were advanced for a specific purpose was not in itself sufficient for the finding of a Quistclose trust; there had to be more in the sense that the monies were only to …
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Wang v Darby [2022] WTLR 327

Wills & Trusts Law Reports | Spring 2022 #186

The parties entered into contracts whereby they exchanged specified quantities of cryptocurrencies, namely Tezos and Bitcoin, on terms of reciprocal restoration of the same amounts of each currency upon or after an agreed period of two years. The claimant applied to continue a worldwide freezing order and proprietary injunction. The defendant applied to strike out/enter summary judgment on the proprietary claims.

Held – applications granted in part

  1. 1) Principles:
    1. a) Fungible and non-identifiable digital assets constitute property ...

Breach of trust: Time for a new law?

James Brown and Mark Pawlowski consider whether a new tort of inducing a breach of trust would be a welcome development in English law The recognition of a new tort of inducing a breach of trust would have the advantage of allowing the claimant to pursue a third party where their wrongdoing consists solely of …
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Group Seven v Notable Services [2019] EWCA Civ 614

Wills & Trusts Law Reports | Autumn 2019 #176

These appeals arose from the a ‘brazen fraud’ by which Allseas Group SA was defrauded of €100 million. After the fraud took place, there was an attempt to launder the proceeds through the client account of a London firm of solicitors, Notable Services LLP, whose partners included Mr Landman. Police intervention secured the return of €88 million – the present proceedings concerned attempts to recover the remainder of this sum from Notable, Mr Landman, Mr Louanjli (a bank employee who provided information to Notable) and LLB Verwaltung, the bank who employed him (”the Bank”).

In add...

Trusts: Test of dishonesty revisited

Sukhninder Panesar looks at recent case law on liability for knowing assistance ‘In order for a stranger to be held liable for assisting in a breach of trust, a number of requirements must be met.’ What constitutes dishonesty in the English legal system has continued to challenge both civil and criminal courts. Over the last …
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First City v Zumax [2019] EWCA Civ 294

Wills & Trusts Law Reports | Summer 2019 #175

The claimant held accounts in Nigeria with IMB International Bank, whose rights and obligations had been inherited by the defendant through a series of mergers. IMB itself held ‘correspondent’ accounts with a London bank. The claimant often received funds to an Isle of Man nominee which held a bank account in London.

In a series of 10 transfers between 2000 and 2002, the claimant’s nominee gave instructions to its bank to transfer sums to one of IMB’s accounts variously identifying the ‘beneficiary’ as IMB but in eight cases ‘for further credit to’ the claimant. Sums totalling $3,...

Bellis v Challinor [2015] EWCA Civ 59

Wills & Trusts Law Reports | January/February 2016 #156

The case concerned a property investment scheme relating to land at and around an airport known as Fairoaks (the Fairoaks scheme). The Fairoaks scheme was the last in a substantial series of schemes (the Albemarle schemes) which, prior to the Fairoaks scheme, were unregulated collective investment schemes promoted by Egan Lawson (later ECS after its takeover by Erinaceous Group PLC (Erinaceous)) involving investment through a single purpose vehicle (SPV). The underlying subject matter of each scheme consisted of either commercial or development property or a mixture of both. The schemes ...

The Law Society v Elsdon & ors [2015] EWHC 1326 (Ch)

Wills & Trusts Law Reports | November 2015 #154

The first defendant practised as a solicitor under his own name until 2013. In that year he began to practise through the third defendant company, which was authorised as a ‘licensed body’ for the purposes of the Legal Services Act 2007. The directors of the third defendant were the first and second defendants.

On 8 December 2014 the Solicitors Regulation Authority decided to intervene in the practice of the first and third defendants and sent notices to the defendants advising them of this.

The decision of the adjudication panel recorded that it decide...

Libertarian Investments Ltd v Hall FACV Nos 14 & 16 of 2012

Wills & Trusts Law Reports | March 2015 #147

W and the defendant embarked on a project with the aim of acquiring a substantial interest in an English company, TSE, which started with the acquisition of 125,000 TSE shares in 2002 (the first tranche). In 2003 they attempted to make additional acquisitions of TSE shares, such attempts involving three of W’s companies, including the plaintiff. The overall scheme was that funds would be provided by one company, Assanzon, for the acquisition of shares for another company, Momentum, which were held for its beneficial owners which were principally the plaintiff company, Libertarian. The fu...

The Charity Commission for England and Wales v Framjee & ors [2014] EWHC 2507 (Ch)

Wills & Trusts Law Reports | November 2014 #144

The Dove Trust (the trust) was established by a declaration of trust dated 16 June 1983 for such charitable purposes as the trustees should in their discretion from time to time think fit. It was subsequently registered as a charity.

In 2004 a website for charitable giving called www.charitygiving.co.uk (the website) was established for the purpose of facilitating members of the public to make donations to the trust for the benefit of other charities or good causes of their choice. Donations which were charitable could then be augmented by gift aid, which the trust would claim sub...