''Barlow Clowes International Ltd v Eurotrust International Ltd''
UKPC 37is an English trusts law">005
UKPC 37is an English trusts law case, concerning breach of trust and liability for dishonest assistance.
Facts
Barlow Clowes International Ltd was in liquidation, after its fraudulent securities scheme was exposed. It took £140m of investors’ money, and paid it into an Isle of Man company where Mr Henwood was a director. The liquidator of Barlow Clowes argued that Mr Henwood had dishonestly assisted the dissipation of the investors’ money.
The
deemster
A Deemster ( gv, briw) is a judge in the Isle of Man. The High Court of Justice of the Isle of Man is presided over by a deemster or, in the case of the appeal division of that court, a deemster and the Judge of Appeal. The deemsters also promu ...
(judge on the Isle of Man) held that Mr Henwood was dishonest. The Court of Appeal held that Mr Henwood was not dishonest, and there was no evidence by which the deemster could have found this. Her disbelief at Mr Henwood’s oral testimony and her inferences were not enough.
Advice
Lord Hoffmann
Leonard Hubert "Lennie" Hoffmann, Baron Hoffmann (born 8 May 1934) is a retired senior South African–British judge. He served as a Lord of Appeal in Ordinary from 1995 to 2009.
Well known for his lively decisions and willingness to break w ...
held Mr Henwood was liable, and the deemster had correctly applied the principles of liability for dishonest assistance. She had stated that Mr Henwood suspected the funds were misappropriated money, and (disapproving ''
Brinks Ltd v Abu-Saleh (No 3)''
996
Year 996 ( CMXCVI) was a leap year starting on Wednesday (link will display the full calendar) of the Julian calendar.
Events
By place
Japan
* February - Chotoku Incident: Fujiwara no Korechika and Takaie shoot an arrow at Retired Em ...
CLC 133) a person could know and suspect money was being misappropriated and thus be liable without knowing the money was held on trust or even knowing what a trust meant. The findings of fact could be made legitimately. With later transactions he had been informed that the director of Barlow Clowes was misappropriating clients’ money, and no inquiries were made. He held there was an element of ambiguity in
Lord Hutton’s decision in ''
Twinsectra Ltd v Yardley
is a leading case in English trusts law. It provides authoritative rulings in the areas of ''Quistclose'' trusts and dishonest assistance.
Facts
Twinsectra Ltd sued an entrepreneur, Mr Yardley, and two solicitors, Mr Sims and Mr Paul Leach (of ...
''. When it was said that ‘what he knows would offend normally accepted standards of honest conduct’ means that what he knows was in objective fact dishonest.
Lord Nicholls, Lord Steyn gave concurring judgments.
Lord Walker and Lord Carswell concurred.
See also
*
English trusts law
English trust law concerns the protection of assets, usually when they are held by one party for another's benefit. Trusts were a creation of the English law of property and obligations, and share a subsequent history with countries across the ...
Notes
References
{{reflist
English trusts case law
Judicial Committee of the Privy Council cases on appeal from the Isle of Man
2005 in the Isle of Man
2005 in British law
2005 in case law