''Belmont Finance Corp Ltd v Williams Furniture Ltd (No 2)''

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1 All ER 393 is an

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 ...

case, concerning breach of trust and

dishonest assistance Dishonest assistance, or knowing assistance, is a type of third party liability under English trust law. It is usually seen as one of two liabilities established in ''Barnes v Addy,'' the other one being knowing receipt. To be liable for dishonest a ...

Facts

Belmont Finance Corp was wholly owned by

City Industrial Finance A city is a human settlement of notable size.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Penguin.Kuper, A. and Kuper, J., eds (1996) ''The Social Science Encyclopedia''. 2nd edition. London: Routledge. It can be def ...

, Mr James the chairman of both. Belmont’s directors paid £500,000 under a scheme to help Maximum Co, owned and controlled by Mr Grosscurth, to buy shares in Belmont from City. This was a breach of

fiduciary duty A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exampl ...

and breach of the prohibition on financial assistance. City received £489,000 ultimately. Belmont later claimed City was liable to account as a constructive trustee.See the headnote of the

All England Law Report All or ALL may refer to: Language * All, an indefinite pronoun in English * All, one of the English determiners * Allar language (ISO 639-3 code) * Allative case (abbreviated ALL) Music * All (band), an American punk rock band * ''All'' (All ...

, at

1 All ER 393

Judgment

The Court of Appeal held that City Industrial Finance was liable to account. Buckley LJ noted ''

Barnes v Addy ''Barnes v Addy'' (1874) LR 9 Ch Appbr>244ref name="citations" /> was a decision of the Court of Appeal in Chancery. It established that, in English trusts law, third parties could be liable for a breach of trust in two circumstances, referred ...

'' to mean that a stranger who receives some of the trust or assists with knowledge of facts in a dishonest design will be liable. Goff LJ concurred. Waller LJ concurred.

Notes

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References

* English trusts case law Court of Appeal (England and Wales) cases 1980 in British law 1980 in case law

Facts

Judgment

See also

Notes

References