Mark Pawlowski takes a critical look at the rule in Clayton’s case and asks whether it still has application in the context of a tracing claim A rigid application of Clayton’s case, although providing a rule of convenience, can produce results of a highly arbitrary nature. Where a trustee (or other fiduciary) wrongfully purchases an …
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Wills & Trusts Law Reports | Spring 2020 #178In 2012, the claimant trustee (K) invested £129m into a joint venture (Spartan), which was alleged have been procured by the deceit of Mr Watson. The action between K and Spartan was settled, with certain agreements between Spartan and K set aside. As a result, K was entitled to treat Spartan as constructive trustee of £129m, which also gave rise to a right to interest under the equitable jurisdiction of the Court, or s35A Senior Courts Act 1981. K continued its claim against Mr Watson, who was found liable to pay equitable compensation to K of all sums which were due f...
