Trust Law Breach

Front 1

Styles v Guy

Back 1

inaction or standing by while other t's breach is a breach

Front 2

Target

Back 2

if one breach causes a profit, losses cannot be offset by it, see also dimes v scott. Losses must be caused by the breach

Front 3

Re Dawson

Back 3

T must account for profits made or losses caused to the trust by a breach

Front 4

Knott v Cottee

Back 4

if t's invest in unauthorised investments they will be liable for any losses when the investment is realised

Front 5

Fry v Fry

Back 5

where unauthorised investments are retained the t's will be liable for any loss in value between when assets ought to have been realised and when they actually were

Front 6

Re Chapman

Back 6

any loss incurred on the sale of authorised investments can only be recovered from the t's if they are guilty of wilful default

Front 7

Massingberds

Back 7

if t's improperly realise authorised investments they will be liable for the cost of replacing them

Front 8

Saunders v Vautier

Back 8

beneficiaries may adopt any unauthorised investments

Front 9

Byrchall

Back 9

where trustees fail to invest at all after being directed to a particular investment, they will be liable for the extra cost of investing at a later time

Front 10

Nestle

Back 10

if specific loss that be proven, that will be the measure of t's liability

Front 11

Jaffray

Back 11

where a continuing breach prevents an asset from being realised, loss to the trust should be based on the highest value of the asset during the period where but for the breach it could have been realised

Front 12

Re Flower

Back 12

duty of trustees is to prevent one of themselves having the exclusive control over the money and certainly not by any act of theirs to enable one of themselves to have exclusive control over it

Front 13

Bahin v Hughes

Back 13

liability for breach of trust is joint and several, both active and passive trustees were equally liable and passive ones were not entitled to be indemnified by active ones

Front 14

Civil liability (contributions) act 1978

Back 14

trustees are entitled to be indemnified by a trustee who alone is guilty of fraud

Front 15

Chillingworth

Back 15

where 1 of the t's in breach is also a beneficiary of the trust and intended to profit by the breach, he must indemnify the other t's to the extent of the beneficial interest

Front 16

Re Dacre

Back 16

Where a trustee/beneficiary is in breach of trust, he can receive no further benefit under the trust until the loss is made good

Front 17

Trustee act 1925 s61

Back 17

statutory power of the courts to relieve t's from liability

Front 18

Perrins

Back 18

complete absence of dishonesty was a prerequisite for s61

Front 19

Holder

Back 19

its not necessary for the b to know he is consenting to a breach

Front 20

Fletcher v Collis

Back 20

a breach consented to a by a sui juris b will remove the right for that b to recover losses related to that breach

Front 21

Boardman v Phipps pt 2

Back 21

t's have a duty to get informed consent from a b

Front 22

Paulings ST

Back 22

consent will not be valid if its a product of undue influence