100%(3)3 out of 3 people found this document helpful
This preview shows page 3 - 5 out of 7 pages.
Webb: i.but there are plenty of resources in the world owned by no one and the lawaccommodates that possibility, so it’s far from clear why someone must have abeneficial interest in the property ii.B isn’t the only one who could enforce
a.Once you discount the possibility of enforcement by settlor, could use theoption of appointing an independent enforcer (Hayton + offshorejurisdictions) who would supervise T + take him to court, if needed But, as independent enforcer w/no interest, how to be sure he willenforce (Parkinson) + could collude w/T to divide up the propertycould add a mandate?b.Follow the example of purpose trusts where there is ascertainable class ofpeople interested in enforcement (e.g. Re Denley) But shouldn’t give the right of enforcement to just any interestedparty – e.g. Contracts (Rights of TPs) Act 1999 where TPs canenforce only when parties to contract agree b)Property under trust must be held for some B, such that he acquires a proprietary right in thattrust fund(Saunders v Vautier) – gives him locus standirequired to petition in courtDuties can’t exist w/out rights – they must be owed to a person who has a right to performancea trust needs someone to whom the benefit of T’s duties is directed, a B, otherwise the trust isillusory Webb: i.duties don’t always have to be owed to someone; e.g. criminal duty not to kill;charitable purpose trusts – don’t have Bs nor are duties owed to AG or CharityCommission who, whilst able to enforce it, aren’t owed an actual duty. ii.perhaps the best way to explain this would be by taking a view that expresstrusts are analogous to gifts so must have someone on the receiving end of it –this explains why enforcement is for B, not the settlor, why trust will fail w/outa trustee etc. But it doesn’t explain why the law recognises a series ofexceptions!!View I: Interest thesis - the trust gives proprietary interest in trust property to B, so that T’scorrelative duty is to effectuate that interestLaw of property is concerned w/allocation & protection of entitlements in things, so that proprietaryinterest = entitlement to exclusively determine how some things may be used or enjoyed Main features of proprietary interest: b)Capable of being asserted against TPsc)Give priority in the event of insolvency of whoever holds the thing Initially B could only claim against trustee for breach of duty but equity extended protectionaccorded to Bs: a)can claim against TPs who received trust property knowingly or w/reason to know that propertyderived from breach of trust b)can claim against a blameless TP who gave nothing in return for trust property received c)where trustee was declared bankrupt, B’s interest bound trustee in bankruptcy so as to give Bpriority Lord BW in Westdeutsche& Lord Millett inTwinsectra- whenever T holds legal title as trustee, Bmust have a symmetrical proprietary equitable interest obviously wrong (Re Denleyetc)B’s interest attaches to property, therefore it must be proprietaryWeak on its own b/c could argue it’s the title of ‘owner’ that’s being held on trust and not thething itself (Swadling – S&V