Self-test questions: Remedies against Strangers

. Who is a 'stranger to the trust'?

. What remedies are available against a stranger to the trust?

. Which of the following are instances of circumstances in which a stranger to the trust will be liable?

. What is a 'trustee de son tort'?

. Should an individual become a trustee de son tort, what liability will be imposed upon them?

. What is dishonest assistance in breach of trust?

. What remedies are available in a claim for dishonest assistance?

. In the case of Royal Brunei v Tan, what actions did the defendant undertake to assist in the breach of trust?

. What is the current test for dishonesty for a claim of dishonest assistance?

. What type of conduct can dishonest assistance be equated with?

. What is 'knowing'/'unconscionable' receipt?

. According to Agip v Jackson, what forms of receipt are necessary for an unconscionable receipt claim?

. What knowledge must the defendant have for a successful unconscionable receipt claim?

. How many classes of knowledge were identified in Re Baden Delvaux v Société General?

. Which of the following have not been equated with unconscionability for the purposes of unconscionable receipt?

. Tamara was recently approached by Terrence about a 'get-rich-quick' scheme. He proposed that if she forged her signature and claimed to be his fellow trustee, she would receive £70,000 of the money they were able to get out of the trust accounts. Will Tamara be a 'stranger to the trust' should she go through with the scheme?

. Catherine is Terrence's accountant, and Terrence is a trustee of substantial assets. He has become aware that Catherine is in financial difficulties, and so proposes that should she 'amend' the trust accounts so as to hide a £90,000 profit that the sale of some of the trust's shares have made, then he will give her £8,000. Catherine assisted Terrence by 'amending' the accounts, but did not receive her promised £8,000. What claims will the beneficiaries of the trust have against Catherine?

. Amal's husband, Jorge, is the trustee of a trust for 13 beneficiaries. He recently became ill and unable to carry out his duties. Amal therefore decided to act in Jorge's stead, and started distributing assets to the beneficiaries. One of the beneficiaries has objected to these distributions. What position will Amal be treated as having adopted?

. It transpires that Amal, who is a trustee de son tort, made distributions of £567,000 in breach of trust, including £126,000 to herself. What remedies will the beneficiaries have against Amal?

. Julius is the account of a major multinational corporation. At the urging of his boss, he authorises the transfer of £45,000 to a company he has never heard of, and which the receiving officer of the company is his boss. Before authorising the transfer he asked his boss 'is this legit?', to which his boss responded 'depends on who you ask'. Julius just nodded. Will Julius have dishonestly participated in a breach of trust?

. Pine Tree Furniture Ltd owe £98,000 to its creditors, and has £72,000 in assets. Fearing that the creditors are going to petition to liquidate the company, Adrian transfers £57,000 to his private bank account to keep them 'out of the sodding bank's hands - those greedy…". Will Adrian be liable for dishonest assistance?

. Haroon received money from his father 15 years ago, and was suspicious about where the money came from, but did not ask any questions. It has recently come to light that Haroon's father misappropriated the moneys from his employer. Will Haroon still be liable for knowing receipt?

. Olivia recently received £12,000 from her father. He has historically never had much money, and is always in debt to someone. Upon receiving the money Olivia asked 'where'd you get this? Was it from something dodgy again?' Her father shrugged and said, 'what's a man gonna do?' Will Olivia be liable for unconscionable receipt?

. Horatio is a director of a company. He is very not very influential, and is always out voted in board meetings. The company is in financial difficulties, and instead of attending the board meeting to resolve what will happen to the company, he goes curling. The next day, £234,000 is deposited in his account by the company with the description 'Down with banks and money lenders!'. He does not question what has happened and the moneys sits in his account. The company is placed into liquidation the following Monday, and the company's only remaining asset is a desk chair. Will Horatio be liable for unconscionable receipt?

. Cyra is 17. She recently started working for her mother's company. Her mother transferred £14,000 into her account, and was asked to then transfer £13,000 to another company. Cyra did this without asking questions as she did not want to displease her mother and she did not really understand what was happening. Her mother's company entered insolvency last week. Is it likely that Cyra will be liable for unconscionable receipt?

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