Westdeutsche Landesbank Girozentrale v Islington LBC
1996 · [1996] AC 669
Posted By lanbuk.com
- Facts
- A bank paid money to a council under an interest rate swap that was later found to be beyond the council's powers. The bank sought compound interest, which depended on there being a .
- Issue
- Did the council hold the money on for the bank?
- Held
- No. The House of Lords held there was no trust, because the council's conscience was not affected when it received the money. The bank's claim was personal, and only simple interest was due.
- Principle
- A trust requires identifiable property and an affected conscience. Resulting trusts arise in two set situations.
- Why it matters
- Lord Browne-Wilkinson's account of resulting trusts is the starting point for the subject.
Words and Latin in this note
- Resulting trust
- A trust under which the beneficial interest goes back to the person who provided the property, because he is presumed not to have meant a gift, or because an express trust did not use up the whole 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.