Target Holdings v Redferns
1995 · [1996] AC 421
Posted By lanbuk.com
- Facts
- Solicitors paid out a lender's mortgage money before receiving the charges, in breach of . The charges were later obtained, but the property was worth much less than lent.
- Issue
- Must the solicitors restore the whole sum, or only the loss caused by the breach?
- Held
- The House of Lords held that the trustee must restore only the loss caused by the breach, judged with hindsight.
- Principle
- Equitable compensation for breach of trust is limited to loss caused by the breach.
- Why it matters
- It is the leading case on compensation for breach of trust.
Words and Latin in this 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.