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 …
Continue reading "Quistclose trusts: A high threshold of facts"
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Wills & Trusts Law Reports | Summer 2019 #175The 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,...
Lynsey Oakdene and Camilla Dalzell discuss the definition of a Quistclose trust and the circumstances in which a court will find that one exists, following Tuthill ‘A Quistclose trust arises in circumstances where a transferor transfers money to another with the intention that the money is to be used for a specific and exclusive purpose.’ …
Continue reading "Quistclose Trusts: Clear segregation"
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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 …
Continue reading "Quistclose Trusts: Beware of importing principles of equity into commercial law"
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