Quistclose Trusts: Beware of importing principles of equity into commercial law

Jehan-Philippe Wood analyses Bieber v Teathers, which sheds new light on how a Quistclose trust is defined in the context of partnerships It is one thing to accept that a trust can exist alongside a contractual arrangement. It is quite another to try to reconcile competing arrangements.A Quistclose trust (the name derives from Barclays Bank …
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Bieber & ors v Teathers Ltd [2012] EWCA Civ 1466

Wills & Trusts Law Reports | January/February 2013 #126

The defendant (Teathers) promoted a series of unregulated collective investment schemes intended to take advantage of tax reliefs available on investments in TV productions. UK tax payers were entitled to write down 100% of any expenditure on a film or TV production certified as a British Qualifying Film. The schemes had not proved successful. Many of the productions were commercial failures and a number of them had not been certified as British Qualifying Films and were illegible for the tax relief that was the rationale behind the schemes. The claimants argued that money invested in th...

Independent Trustee Services Ltd v GP Noble Trustees Ltd & ors [2012] EWCA Civ 195

Wills & Trusts Law Reports | September 2012 #122

Anthony Morris (Mr Morris) orchestrated a series of frauds between August 2007 and April 2008 by which £52m was misappropriated from various occupational pension schemes by their trustees, GP Noble Trustees Ltd and BDC Trustees Ltd. The appellant was Independent Trustee Services Ltd (ITS), which had been appointed as trustee of the 1653 pension schemes by the Pensions Regulator in July 2008. Mr Morris was found liable in dishonest assistance for £52m and in knowing receipt for £4.89m by Peter Smith J in July 2010 ([2010] EWHC 1653 (Ch)) (the chancery action).

Mr Morris had married...

Spread Trustee Company Ltd v Hutcheson & ors [2011] UKPC 13

Wills & Trusts Law Reports | March 2012 #117

Privy Council (Lady Hale, Lord Mance, Lord Kerr, Lord Clarke and Sir Robin Auld)

The respondents made claims for breach of trust against the appellant in respect of breaches that occurred in Guernsey at a time when Guernsey customary law governed the duties of Guernsey trustees and also after the introduction of the Trusts (Guernsey) Law 1989 (the 1989 Law), but before that law was amended by the Trusts (Amendment) (Guernsey) Law 1990 (the 1990 Law). The trust instrument included an exoneration clause in respect of negligence by the trustee and ...

Breach Of Trust: Dishonest or unconscionable?

The Starglade case casts light on the meaning of dishonesty in the context of accessory liability, as Mark Pawlowski discusses ‘In Twinsectra Ltd v Yardley [2002], the majority of the House of Lords concluded that dishonesty also required a dishonest state of mind. This approach, however, was rejected by the Privy Council in Barlow Clowes …
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Fiduciary Duties: The art of misdirection

Rachel Mainwaring-Taylor finds Aerostar a timely reminder of how directors must be aware of their duties when dealing with multiple companies ‘From a commercial point of view, that there is nothing preventing an individual from holding the office of director in more than one company. In such circumstances they will be obliged to act in …
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