Barnes v Addy
1874 · (1874) LR 9 Ch App 244
Posted By lanbuk.com
- Facts
- A trustee appointed a sole new trustee, who misapplied the fund. The sued the solicitors who had acted in the appointment.
- Issue
- Were the solicitors liable as constructive trustees?
- Held
- No. Lord Selborne LC said strangers are liable only if they receive property or knowingly assist in a dishonest design.
- Principle
- Strangers to a trust are liable for knowing receipt or for assisting a dishonest breach.
- Why it matters
- It is the traditional starting point for third-party liability.
Words and Latin in this note
- Beneficiary
- A person entitled to the benefit of trust property in equity, who can make the trustees carry out the trust. 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.