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Third Party Liability - Coggle Diagram
Third Party Liability
What if there is a 3rd party?
If prop/tr sub = transferred to 3P
C has a traceable proprietary claim
BUT if 3P no longer has prop/traceable sub
C only has personal claim for the value
knowing receipt
OR if 3P = assistant in the breach
C has personal claim for loss inflicted via the breach or their gain
dishonest assistance
to be liable:
must have been an initial breach of trust/fid duty by primary trustee/fid
Dishonest Assistance
participated in the breach/enterprise as an accessory
Royal Brunei Airlines v Tan
CTs cannot be imposed w/out property
Elements:
I) Breach by trustee/fid
El Ajou v Dollar Land Holdings Ltd
ii) 3P assistance
iii) 'dishonesty' of 3P
fault based
depends on knowledge
must show that D knew the property they received = misappropriated trust property
Eagle Trust v SBC Securities
can be overlap
recipient may have also
assisted in breach
Barlow Clowes International v Eurotrust
proprietary
claims = pursue the property itself
tracing
the property itself
or a traceable substitute
may be preferable but not always possible
Knowing Receipt
received the property at some point
Elements:
I) Breach by trustee/fid
could also be mistake
no need to show that it was with dishonest mind just that it happened
ii) 3P beneficially receives assets traceable as representing trustee/fid property
must be received for themselves not for someone else (another 3P)
must have legal title
iii) 3P knows assets traceable to breach
can't be equity's darling
personal
claims = pursue person and make them pay you
Rule in Barnes v Addy
