Attorney-General for Hong Kong v Reid
1993 · [1994] 1 AC 324
Posted By lanbuk.com
- Facts
- Reid, a Crown prosecutor in Hong Kong, took bribes to obstruct prosecutions. He bought land in New Zealand with the money, and the land rose in value.
- Issue
- Did Reid hold the land on for the Crown, or did he only owe the Crown a personal debt?
- Held
- The Privy Council held that he held the bribes, and the land bought with them, on for the Crown from the moment he received them.
- Principle
- A who receives a bribe holds it on constructive trust for his principal, because equity regards as done what ought to be done.
- Why it matters
- The principal can trace into property bought with the bribe and take any increase in value. The UK Supreme Court confirmed this in FHR European Ventures v Cedar Capital Partners.
Words and Latin in this note
- Constructive trust
- A trust imposed by law, whatever the parties intended, because it would be unconscionable for the legal owner to keep the property for himself. Open the note.
- Fiduciary
- A person, such as a trustee, director or agent, who must act loyally for another. He must not profit from his position or put himself in a conflict of interest. Open the note.
- Trust
- An arrangement in which a trustee holds property at law but must use it for beneficiaries, or for a charitable purpose. The beneficiaries have the equitable interest. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.