Equity Case Summaries
Equity & Trust Summary 2007 Contents Equity Equitable Estates and Interests 2 Priorities in equity 5 Assignments 10 Estoppel 22 Undue influence 25 Unconscionable dealings 26 Fiduciary obligations 28 Trusts Intro trusts 33 Trustees 35 Trustee duties/powers 38 Rights of beneficiaries 40 Charitable Trusts 43 Express trusts 50 Resulting trusts 54 Constructive trusts 57 Equitable Estates and Interests The proprietary nature of equitable interests * Originally Equity acted in personam * Equitable rights now may have proprietary character * Equitable proprietary interest somewhere in between a personal and proprietary right * The strongest interest is beneficiary under a trust where the trustee holds the trust property for the beneficiary absolutely The indicia of proprietary interests in equity Defined in National Provincial Bank Ltd v Ainsworth [1975] AC "Proprietary interests" are rights or interests of property or a right affecting property. They must be; * Definable * Identifiable by the parties * Capable in its nature of assumption by third parties * Have a degree of permanence and stability Defined MGL suggest the following criteria . the power to recover the specific property, or income derived from the property 2. the power to transfer the benefit of an interest
The trustees’ duty to provide information to beneficiaries.
THE TRUSTEES' DUTY TO PROVIDE INFORMATION TO BENEFICIARIES Introduction I am honoured to be invited to give this year's lecture. The lecture is prestigious and for this reason for the lecturer a challenging proposition. Not long after Lord Walker's lecture last year I had occasion to consider the rule in Hastings-Bass in the case of Abacus Trust Co (Isle of Man) v. Barr [2003] 2 WLR 1363 ("Abacus"), and if my decision was in any way courageous departing (as I did) from a line of authority and making my own furrow on the question whether a decision successfully challenged on Hastings-Bass grounds was void or voidable, I acknowledge the encouragement to my resolution afforded by Lord Walker's lecture. My decision was not appealed to the Court of Appeal. Instead there was an appeal to the legal profession as a whole by way of legal periodical. I have in mind in particular the article in 17 Trust Law International (2003) 114-128: The Law Relating to Trustees' Mistakes - Where Are We Now? by Mr Brian Green QC, a member of the same stable, Wilberforce Chambers, as leading Counsel for the unsuccessful party in Abacus. Such an appeal has decided advantages over an appeal to the Court of Appeal: (1) there is no requirement of giving notice of the appeal to anyone and the judge has no right to be heard; (2) there is no limitation of the issues raised to those raised before the
Trusts Essay on Fiduciary Duties
Consider the special significance of fiduciary conflicts rules to law firms, taking account of recent cases in this area. Introduction The most fitting way to begin the discussion of fiduciary conflict rules and their special significance to law firms, is by quoting St Matthew, chapter 6, verse 24: "No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other."1 The principles of fiduciary law are based on this exact statement. Whether such a broad principle is in fact a practical reality in the vocational realm of law firms is debatable, and will be examined throughout the essay. Fiduciary conflict rules come into play where a fiduciary relationship exists. Such a relationship, as best described in Bristol and West Building Society v Mothew2, presupposes a duty owed by someone who has undertaken to act for or on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence3. The nature of the solicitor-client relationship certainly meets the criteria of a fiduciary relationship, but identification of such a relationship is only the beginning, next comes the question of what duties does a solicitor owe? The primary duty for any fiduciary is that they may not have any conflict between their personal interest and that of their principal.4 This is
Scientology and Charitable Status
. Introduction In today's society, charitable status is of significant importance. The controversial Church of Scientology, founded by the science-fiction writer L. Ron Hubbard, has long craved charitable status in the United Kingdom but was turned down by the Charity Commission in 1999. The Times article titled 'Scientologists set to cash in on tax break'1 has raised some interesting legal and policy issues related to the charitable status of religious organisations since the enactment of the 2006 Charities Act. On the surface, the article raises practical issues of fiscal privileges but the article also provides an opportunity to discuss some broader policy considerations related with religious charities and how the Charities Act has made some subtle but significant changes to how they are treated. In this essay I intend to examine the legal impact of the changes the Charities Act 2006 has had on religious charitable status and on the Church of Scientology's bid for charitable status. In addition, I will consider some of the broader policy issues rising from the changes from the 2006 Act and the debate surrounding religious charities more generally. But before discussing the legal and policy implication of charitable status of religious organisation, first it is appropriate to address the benefits of charitable status. 2. Advantages of Charitable Status Much of charities
Equity Exam Notes
Equity notes Legal Position Look first as to what legal position the parties being advised are in and if there are competing legal interests will they extinguish equitable interests. * Is there any existing proprietary rights? I.e. mortgage, lease, fee simple * Is there any existing contractual relationship between the parties? They will if the legal title to certain property is obtained without notice by a bona fide purchaser. Law of Property Act s117 states that knowledge can be either constructive, actual or imputed if through an agent. If the legal interest was first in time then the equitable interest will only win if the legal title holder was careless or took part in a fraud to create the equitable title. Trusts Express Trust Statute In SA to validly create a trust over Torrens Title land s29 (1) (B) states that the transfer needs to be in writing. Certainty of Intention When a deed of trust is executed there will usually be no need to look further at the intention of the party allegedly creating the trust. However, when there is a situation such as the one in Joliffe the question of intention does matter. Commissioner of Stamp Duties v Joliffe (1953) - man opens bank account and states that it is on trust for someone else. However, the court held that his real intention was to use the money in the account as his own and no trust has therefore been
The central issue is the "complete constitution of voluntary trusts".
Table of Contents: Iconia: 1 Has Rowena Acquired Legal Title? 1 Has Rowena Acquired Equitable Title? 1 Instrument of Transfer: 2 Certificate of Title: 3 Less Likely Conclusion: 4 Most Likely Conclusion: 4 Postage Stamp: 5 Interest Free Loan: 7 Shares in Company C: 8 Diamond: 10 Painting: 11 Credit Balance: 12 Antique Vase: 14 The central issue is the "complete constitution of voluntary trusts"1. We begin with the declaration by Turner LJ in Milroy v Lord2 that "there is no equity to perfect an imperfect gift"3. This statement has been confirmed in Olsson v Dyson4. Iconia: Has Rowena Acquired Legal Title? Rowena has not acquired legal title to Iconia since she is not the registered owner of the property pursuant to sections 60(1) and 181 of the Land Title Act5(LTA). Therefore it must be determined if she has acquired equitable title to enable her to call for legal title. Has Rowena Acquired Equitable Title? High Court authority in Corin v Patton6 dictates that equity will recognize a gift of Torrens Title land if the intending donor (Jeremy) has done everything which is necessary for them to have done to effectuate a transfer, in equity, of their interest in the land7. Mason CJ8, McHugh J9 and Deane J10 held that ownership of the memorandum of transfer (Instrument of transfer(IT) in Queensland by virtue of s60 (1) LTA) needs to be given to the intended
“The Insolvency Act 1986 gives the court the power to set aside trusts which are created in an attempt to elude personal bankruptcy or corporate insolvency. Similarly, the courts have refused to recognise ‘sham’ trusts where the trust is
"The Insolvency Act 1986 gives the court the power to set aside trusts which are created in an attempt to elude personal bankruptcy or corporate insolvency. Similarly, the courts have refused to recognise 'sham' trusts where the trust is used so as to give the mere appearance of separating property from the insolvent person's assets when in reality that person continues to use such property as though it remains entirely their own. Set against this background 'Quistclose' trusts are just another means of shielding money against a borrower's insolvency in loan transactions, yet such trusts are specifically recognised by the courts". In the light of this statement and the current state of insolvency law critically evaluate the justification for such trusts and assess the juridical basis upon which they rest. Sam Coppock - 2009 The term Quistclose trust is a name given to a situation whereby a creditor and debtor arrange that the money transferred will be used only for a specific purpose and should that purpose fail that the money will be returned to the creditor. If the court accepts the situation the legal position is that there was initially an express trust in favour of the beneficiary of the purpose and when that purpose becomes impossible an implied trust in favour of the creditor is created. The fact that the debtor is only ever a trustee and never a holder of a
Can equity perfect an imperfect gift?
When is a gift completed?1 This very simple question has caused a great deal of debate between academics after decisions of recent case law in this area. The dictionary definition of a gift is '...the complete transfer of property to another.' 2 Here both legal and equitable title pass and the donee becomes the absolute owner of the property. To perfect a gift, it is necessary that the relevant form of transfer relating to the type of property involved is employed. If not, there is an imperfect gift, and equity will not perfect an imperfect gift.3 This can be differentiated from a trust, which is dependent upon identifiable property being transferred from its legal owner to one or more trustees to hold and manage property for benefit of ascertainable beneficiaries.4 For a trust to be constituted, the legal title to trust property must be transferred to trustees for a valid trust to be constituted. The modern case law in particular with regards to shares in a private limited company mainly consists of scenarios where intended gifts or shares are thwarted due to the donor's non-compliance with some requirement of transfer either at law or equity.5 This essay will critically analyse how methods of constituting a trust or gift have evolved through case law, to a stage now where there seems to be a relaxation of the orthodox principles applying to imperfect gifts.6 Indeed some
Equity Coursework
Equity Coursework Introduction The two articles by Jonathon Garton and Margaret Halliwell both address the decision in Re Rose1 on the issue of perfecting imperfect gifts. Prior to Re Rose2, Milroy v Lord3 was the main case on this issue, where Turner L.J. stated, "...the court will not hold the intended transfer to operate as a declaration of trust, for then every imperfect instrument would be effectual by being converted into a perfect trust."4 These two articles, however, have different view points on this issue and present arguments as to whether the decision in this case is correct or not; there has also been some suggestion that it has opened the floodgates for future cases to argue that the courts should perfect the passing of imperfect gifts. There are many legal experts who agree with one article over the other; however, there are many other experts that agree with certain issues raised in both the articles. I will look at both articles, critically analysing both of them, and suggest which article takes preference. Starting Point - Milroy v Lord Milroy v Lord is the starting point for which to understand the main aspects of both these articles. In this case, the settlor delivered up the executed transfer form and share certificates but the defendant's name was never entered on the bank's register of members and so legal title had not been transferred to the
Are trustees too powerful?
Equity and Trusts Assessment 2 Krishna pandya Module Title: LW513 Seminar leader: R.Greenland Group number: 19 Are trustees too powerful? "A trust has been described as the most important invention made by equity, as their lies as distinction between both the legal interests or estate as well as the equitable interest in property as under the trust the legal title will be vested in the trustees and the equitable title in the beneficiaries under the trust."1 It therefore can be seen that there is no clear or satisfactory definition of what a trust actually is or what it amounts to, as trusts in general are seen to cover a wide Varity of situations such as; in the realm of "wealth management the concept of a Trust is seen as a way of holding personal wealth (security assets) confidentially. Therefore Trusts have been created for many reasons; often in offshore jurisdictions, in an effort to reduce tax liabilities, to alter the devolution of assets on death, to avoid the inconvenience and publicity of probate and to shelter assets from actual or potential creditors. A trust is the most common form of wealth structure to grow one's wealth, enjoy it, protect it and pass it on to future generations with minimum dissipation through taxes, family disputes and governmental interference, as well as the protection of ones property. It therefore can be described as a "fire-wall"