highlight briefly on the area of breach of trust; in that the trustee will be liable to make good for those losses as a result of misappropriation. In addition, introduce the area of tracing. Suggested Model Answer for Constructive Trust and Tracing
Contents: - Toby will still be liable even though he is dead. The possible claim will be against his estate and claim can be made against his personal representative – in most cases usually his wife or any next of kin. Toby was in breach of fiduciary duties – in essence the area of unauthorized profit. Trustees have a duty to ensure that he should not indulge in making any kind of profit even though it is for the good of the estate. • Suggested Model Answer for Constructive Trust and Tracing
Quare: - Was Barney personally liable? The main focus of discussion over here would be whether he was liable for dishonest assisting. He knew the existence of the trust between Toby and the large family estate; and clearly, without doubt that he was dishonest; applying the case of [Barnes v. Addy]. This was further affirmed in [Twinsectra v. Yardley] – read the case. In addition, he was assisting in the breach of trust. c/w [Brinks v. Abu Salleh].
The next area of discussion would be on his knowledge. In order to satisfy the area of dishonest assistance, there MUST be actual
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- Fall '16
- Law, Trust law, Toby