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#equity #law #strangers
In Re Montagu’s Settlement [1987] 1 Ch 264, the tenth Duke was a beneficiary of a trust and, in the late 1940’s, disposed of certain settled chattels. He died in 1977 and the eleventh Duke, now entitled to the chattels, sued the executors of the tenth Duke on the basis that the tenth Duke was a constructive trustee of those chattels. The tenth Duke believed that he had the right to dispose of the chattels. According to Megarry V-C, ‘There was no suggestion that anyone concerned in the matter was dishonest. There was a muddle, but however careless it was, it was an honest muddle’.
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