References: (1880) 13 ChD 696
Coram: Sir George Jessel MR
Ratio: Where a trustee of a policy used money received from others to make payment of premiums on an insurance policy, they would be entitled to a lien on the policy. Where an asset was acquired exclusively with trust money, the beneficiary could either assert equitable ownership of the asset or enforce a lien or charge over it to recover the trust money. In the case of a mixed substitution the beneficiary is confined to a lien.
Jurisdiction: England and Wales
This case is cited by:
- Cited – Aluminium Industrie Vaassen B V v Romalpa Aluminium Ltd ChD (lip, [1976] 1 WLR 676)
The plaintiffs sold aluminium to the defendant and by a clause in the contract retained their title in the materials sold until payment was received. The purchaser went into insolvent receivership, and the seller sought recovery of the equipment and . . - Cited – Aluminium Industrie Vaassen B V v Romalpa Aluminium Ltd CA (lip, [1976] 1 WLR 676)
The seller sold aluminium to the defendant, but included a clause under which they retained title in the materials sold, even if mixed in with manufactured goods, until they had been paid for the metal. The defendants appealed a finding that the . . - Cited – Foskett v McKeown and Others CA (Times 27-Jun-97, Bailii, [1997] EWCA Civ 1747, [1998] Ch 265)
Various people had paid money with the promise of acquiring an interest in land in Portugal. The scheme was fraudulent. The funds had been used to purchase a life/investment policy. The policy was held in trust for the fraudster’s mother but he had . . - Explained away – In re Tilley’s Will Trusts ChD ([1967] Ch 1179)
The court considered the rights of a beneficiary to participate in any profit which resulted where a trustee mixed trust money with his own money and then used it to purchase other property. . . - Disapproved – Foskett v McKeown and Others HL (Times 24-May-00, Gazette 08-Jun-00, House of Lords, Bailii, [2000] UKHL 29, [2000] 3 All ER 97, [2000] Lloyd’s Rep IR 627, [2001] 1 AC 102, [2000] WTLR 667, (1999-2000) 2 ITELR 711, [2000] 2 WLR 1299)
Two groups of innocent parties disputed the rights to a death benefit of about 1m pounds paid by insurers pursuant to a whole life policy. A trustee had misappropriated trust funds and used them in part to pay premiums on life insurance policies for . . - Cited – Kleinwort Benson Ltd v Lincoln City Council etc HL (Gazette 18-Nov-98, Gazette 10-Feb-99, Times 30-Oct-98, House of Lords, Bailii, [1998] UKHL 38, [1999] 2 AC 349, [1998] 4 All ER 513, [1998] 3 WLR 1095, [1998] Lloyds Rep Bank 387)
Kleinwort Benson had made payments to a local authority under swap agreements which were thought to be legally enforceable when made. Subsequently, a decision of the House of Lords, (Hazell v. Hammersmith and Fulham) established that such swap . .
(This list may be incomplete)
Last Update: 15 October 2019
Ref: 181238
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