ROUTLEDGE REVISION Lawcards 2012–2013 Equity and Trusts Equity and Trusts 2012–2013 223653.indb3653.indb i 110/20/110/20/11 5:285:28 PMPM Eighth edition published 2012 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2012 Routledge All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice : Product or corporate names may be trademarks or registered trademarks, and are used only for identifi cation and explanation without intent to infringe. First edition published by Cavendish Publishing Limited 1997 Seventh edition published by Routledge 2010 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978–0–415–68336–4 (pbk) ISBN: 978–0–203–29999–9 (ebk) Typeset in Rotis by Refi neCatch Limited, Bungay, Suffolk 23653.indb ii 10/20/11 5:28 PM Contents Table of Cases v Table of Statutes xxvii How to use this book xxxi 1 Equity and the nature and types of trust 1 2 Capacity and the three certainties 17 3 Statutory formalities 33 4 Constitution of a trust 51 5 Resulting trusts 69 6 Constructive trusts 87 7 Trusts of the family home 103 8 Charitable trusts 115 9 Non-charitable purpose trusts, trusts of imperfect obligation and unincorporated associations 141 10 Trustees and administration of the trusts 155 11 Breach of trust and remedies 189 12 Equitable remedies of injunction and specifi c performance 209 13 Putting it into practice . 219 iii 23653_01_FM-ch08.indd iii 10/22/11 5:18 PM 223653.indb3653.indb iviv 110/20/110/20/11 5:285:28 PMPM Table of Cases Abbott v Abbott [2007] UKPC 53 110 Abergavenny v Ram [1982] 178 Abou-Rahmah v Abacha [2006] EWCA Civ 1492 97 Abrahams v Trustee in Bankruptcy of Abrahams [1999] 72 Abrahams v Trustees of the Property of Abrahams [1999] 74 Adams and Kensington Vestry, Re [1884] Ch D 394 20 Agip (Africa) v Jackson [1992] 94, 95, 99 AG Cayman Island v Even Wahr-Hansen [2001] 132, 137 AG v Day [1900] 123 AG v Jacobs-Smith [1895] 60 AG for Hong Kong v Reid [1993] 3 WLR 1143 93 AG v Margaret and Regius Professors in Cambridge [1682] 120 AG v National Provincial Bank [1924] 133 AG v Observer Ltd [1990] AC 109 212 AG v Ross [1986] 121 Air Jamaica v Charlton [1999] 82 Aldhous, Re [1955] 173 Allen, Re [1953] Ch 810 30 Allied Dunbar v Fowler [1994] 37, 42 American Cyanamid Co v Ethicon Ltd [1975] AC 396 214 Ames’ Settlement, Re [1946] Ch 217 81 Andrew’s Trust, Re [1905] 81 Anker-Petersen v Anker-Petersen [1991] WTLR 581 183 Anthony v Donges [1998] 22 Anton Piller KG v Manufacturing Processes Ltd [1976] 215 2 WLR 162 Armitage v Nurse [1998] 3 WLR 1046 197 ARMS Ltd, Re [1997] 136 v 223653.indb3653.indb v 110/20/110/20/11 5:285:28 PMPM TABLE OF CASES Arogundade v Arogundade [2005] EWHC 1766 107 Ashburn Anstalt v Arnold [1989] 89 Astor’s Settlement Trust, Re [1952] Ch 534 7, 25, 142 Baden Delvaux v Société Générale [1983] 1 WLR 509 96 Baden (No 2), Re 27, 30 Bahin v Hughes [1886] 31 Ch D 390 192 Baillie, Re [1886] 50 Bain, Re [1930] 123 Baldry v Feintuck [1972] 121 Banfi eld, Re [1968] 123, 139 Bannister v Bannister [1948] 35, 43 Barclays Bank v Quistclose Investments [1970] AC 56 82 Barker, Re [1898] 197 Barker’s WT, Re [1948] 123 Barlow v Grant [1684] 1 Vern 255 179 Barlow Clowes and Russell-Cooke Trust Company v 207 Prentis [2003] Barlow Clowes v Vaughan [1992] 4 All ER 22 207 Barlow Clowes International Ltd (in Liquidation) v 97 Eurotrust International Ltd [2006] Barlow’s Will Trusts, Re [1979] 1 WLR 278 26, 30 Barnes, Re [1930] 122 Barnes v Addy [1874] LR 9 Ch App 244 95, 96 Bartlett v Barclays Bank Trust Co [1980] Ch 515 165, 194 Bateman’s WT, Re [1970] 47 BCCI v Akindele [2000] 4 All ER 221 100 Beale’s Settlement Trust, Re [1932] 2 Ch 15 183 Beaumont, Re [1902] 63 Beckford v Beckford [1774] 74 Belcher, Ex p [1754] 179 Bell’s Indenture, Re [1980] 193 Belmont Finance v Williams Furniture (No 2) [1980] 194 Beloved Wilkes Charity, Re [1851] 163 Benjamin, Re [1902] 173 Bennet v Bennet [1879] 74 Bennet, Re [1920] 133 vi 223653.indb3653.indb vivi 110/20/110/20/11 5:285:28 PMPM TABLE OF CASES Best, Re [1904] 133 Besterman’s WT, Re [1980] 120 Binions v Evans [1972] Ch 359 88 Birch v Treasury Solicitor [1951] 64 Birmingham v Renfrew [1937] 23 Birmingham Mosque Trust v Alavi [1992] 124 Biscoe v Jackson [1887] 35 Ch D 640 119, 135 Bishopsgate Investment Management v Homan [1994] 205 Biss, Re [1903] 92 Blackwell v Blackwell [1929] AC 318 46, 48 Blackwell, Re [1925] AC 318 48 Blair v Duncan [1902] 133 Boardman v Phipps [1967] 2 AC 46 92, 166, 167 Bogg v Raper [1998] 198 Boles, Re [1902] 169 Bonham v Fishwick [2008] EWCA Civ 373 198 Booth v Booth [1838] 196 Boscawen v Bajwa [1995] 202, 206 Bourne v Keane [1919] AC 815 143 Bowden, Re [1936] 52 Box v Barclays Bank [1998] Lloyd’s Rep Bank 185 201, 206 Boyce v Boyce [1849] 16 Sim 476 24 Boyes, Re [1884] 26 Ch D 531 45 Bradbury v Hoolin [1998] NPC 87 75 Bray v Ford [1896] 91, 166, 168 Brinks Ltd v Abu-Saleh [1995] 96 Bristol & West Building Society v Mothew [1996] Ch 1 91 Bristol & West Building Society v Pritchard [1994] 35 British Museum Trustees v White [1826] 2 Sim & 121 St 594 Brogden, Re [1888] 190 Brook, Re [1939] 59 Brown v Burdett [1882] 142 Brown v Gould [1972] 26 Brown v Porau [1995] 50 Brown v Smith [1878] 190 Buck, Re [1896] 128 vii 223653.indb3653.indb viivii 110/20/110/20/11 5:285:28 PMPM TABLE OF CASES Bucks Constabulary Widows’ and Orphans’ Fund Friendly 82, 152, 153 Society, Re (No 2) [1979] 1 WLR 936 Bull v Bull [1955] 72 Bullmer Ltd v Bollinger [1977] 212 Burns v Burns [1984] 2 WLR 582 108, 110 Burrough v Philcox [1840] 13, 29 Burton’s Charity, Re [1938] 134 Bushnell, Re [1975] 121 Butlin’s ST, Re [1976] 164 Buttle v Saunders [1950] 2 All ER 193 168, 171 Byrchall v Bradford [1822] 193 Caffoor v Income Tax Commissioner Colombo [1961] 129 AC 584 Cain v Moon [1896] 63 Cannon v Hartley [1949] Ch 213 60 Carl Zeiss Stiftung v Smith (No 2) [1969] 88 Carreras Rothman v Freeman Mathews Treasure [1985] 82 Caus, Re [1934] 123 Chaplin, Re [1933] 139 Chapman, Re [1896] 2 Ch 763 171 Chapman v Chapman [1954] AC 429 182 Charles v Fraser [2010] EWHC 2154 101 Chase Manhattan Bank v Israel-British Bank [1979] 202 3 All ER 1025 Chettiar v Chettiar [1962] 76 Chichester Diocesan Fund v Simpson [1944] 137 Childers v Childers [1857] 35 Chillingworth v Chambers [1896] 191, 196 Chinn v Collins [1981] 41 Choithram v Pagarani [2001] 1 WLR 1 55, 220, 221, 223 Commissioners for Special Purpose of Income Tax v 117 Pemsel [1891] CL, Re [1969] 184, 185 Clark v Clark [1884] 169 Clark v Manjot [1998] 73 Clayton’s Case [1816] All ER Rep 1 207 viii 223653.indb3653.indb viiiviii 110/20/110/20/11 5:285:28 PMPM TABLE OF CASES Cleaver, Re [1981] 23, 49, 100 Clergy Society, Re [1856] 123 Clitheroe, Re [1959] 185 Clough v Kiley [1996] 108 Clout v Frewer [1924] 161 Cochrane, Re [1955] 81 Cockerell’s ST, Re [1956] 183 Cohen, Re [1973] 128 Cole, Re [1964] 54 Coles v Trecothick [1804] 169 Colin Cooper, Re [1939] 45 Collier v Calvert [1994] 58 Collins, Re [1886] 176, 182 Columbia Picture Industries Inc v Robinson [1987] Ch 38 216 Comiskey v Bowring-Hanbury [1905] AC 84 20 Commerzbank Aktiengesellschaft v IMB Morgan [2004] 207 Compton, Re [1945] 1 All ER 198 129 Connolly, Re [1910] 20 Conservative and Unionist Central Offi ce v Burrell [1982] 145 1 WLR 522 Cook, Re [1965] 61, 224 Cooke v Head [1972] 88, 108 Co-operative Insurance Society Ltd v Argyll Stores 216 (Holdings) Ltd [1998] AC1 Coomber, Re [1911] 91 Coulthurst, Re [1951] 119 Cowan v Scargill [1985] 3 WLR 501 172 Cowcher v Cowcher [1972] 73, 107 Coxen, Re [1948] Ch 747 29, 133 Crabb v Crabb [1834] 74 Cradock v Piper [1850] 1 Mac & G 664 164 Crane v Davis [1981] 72 Crown Dilmun Ltd v Sutton and another [2004] 92 Cunnack v Edwards [1896] 2 Ch 679 82 Curley v Parkes [2004] EWCA Civ. 1515 107 Curtis v Rippon [1820] 23 ix 223653.indb3653.indb ixix 110/20/110/20/11 5:285:28 PMPM TABLE OF CASES D (a child) v O [2004] 184 Dale, Re [1993] 49 Dale, Re (deceased) [1994] Ch 31 101 Dance v Goldingham [1873] 190 D’Angibau, Re [1880] 60 Danish Bacon Co, Re [1971] 37, 42 Daraydan Holdings v Solland Interiors [2004] 93 Darling, Re [1896] 123 Davis v Hardwick [1999] 81 Davis v Richards and Wallington Industries [1990] 82, 153 De Clifford, Re [1900] 197 Dean, Re [1889] 41 Ch D 552 7, 143 Dean’s WT, Re [1950] 139 Delany, Re [1902] 127 Delius, Re [1957] 121 Delves v Gray [1902] 169 Denley’s Trust Deed, Re [1969] 1 Ch 373 143 De Visme, Re [1863] 74 Dewar v Dewar [1975] 72 Dhingra v Dhingra [1999] 21 DHN Food Distributors v Tower Hamlets LBC [1976] 41 1 WLR 852 Diggles, Re [1888] 20 Dillwyn v Llewellyn [1862] 4 De Gf & J 517 65 Dimes v Scott [1828] 194 Dingle v Turner [1972] 127, 128, 129, 131 Diplock, Re [1941] Ch 465 8, 94, 133, 172, 202, 208 Diwell v Farnes [1959] 74 Dodkin v Brunt [1868] 157 Dominion Student’s Hall Trust, Re [1947] 134 Dougan v MacPherson [1902] 169 Douglas v Hello Ltd [2001] EWCA Civ 595 215 Downshire’s Settled Estates, Re [1953] 184 Drake v Whipp [1996] 1 FLR 826 109 Driffi ll, Re [1949] 126 x 223653.indb3653.indb x 110/20/110/20/11 5:285:28 PMPM TABLE OF CASES Druce’s ST, Re [1962] 185 Duke of Norfolk’s ST, Re [1981]