#equity #law #strangers
Distinct from the trustee de son tort are strangers made personally liable to account to the beneficiary for a breach of trust because of some fault on their part.
Such a stranger may become liable to account in one of two ways:
- They may knowingly receive or deal with the trust property in breach of trust; this is traditionally referred to as ‘knowing receipt’, though, as will be seen, nowadays, it may, perhaps, more accurately be regarded as dishonest or unconscionable dealing with received trust property in not returning the property to its rightful owner when aware that it should be returned; or
- They may dishonestly assist or procure a breach of trust; this is traditionally referred to as ‘knowing assistance’; however, following the Privy Council decision in Royal Brunei Airlines v Philip Tan Kok Ming [1995] 2 AC 378 [1995] UKPC 22, it is perhaps more accurately referred to as ‘dishonest assistance’ though Lord Nicholls in that case referred to ‘accessory liability’.
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