''Re Diplock'' or ''Ministry of Health v Simpson''

951 Year 951 ( CMLI) was a common year starting on Wednesday (link will display the full calendar) of the Julian calendar. Events By place Europe * King Berengar II of Italy seizes Liguria, with help from the feudal lord Oberto I. He re ...

AC 251 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 ...

and

unjust enrichment In laws of equity, unjust enrichment occurs when one person is enriched at the expense of another in circumstances that the law sees as unjust. Where an individual is unjustly enriched, the law imposes an obligation upon the recipient to make res ...

case, concerning tracing and an action for money had and received.

Facts

Various charities, including the Royal Sailors Orphans Girls’ School and Home and Dr Barnardo’s Homes had wrongly been paid money by personal representatives under Mr Caleb Diplock’s will, which left £263,000. The representatives mistakenly believed a clause in the will was valid. Some money went to be used to improve and repair other property. But the trust was held to be invalid in a decision of the House of Lords, called '' Chichester Diocesian Fund and Board of Finance Incorporated v Simpson''. The next of kin, including Cornelius Simpson, claimed that the money should be repaid by the recipients.

Judgment

Court of Appeal

The Court of Appeal rejected the claimant’s claim for a charge over newly built buildings. It allowed a claim for equitable tracing in the mixed funds held by the charities. For mixed funds not held in current accounts, as for Royal Sailor’s, the claimants held a proportionate share. For funds held in current accounts, as for Dr Barnado’s, the first in first out rule was applicable. Lord Greene MR said the following. Wrottesley LJ and Evershed LJ concurred.

House of Lords

The House of Lords upheld Court of Appeal that the next of kin, including Simpson, had a personal equitable remedy against the charities to recover the money, once the claims against the personal representatives were exhausted.

Lord Simonds Gavin Turnbull Simonds, 1st Viscount Simonds, (28 November 1881 – 28 June 1971) was a British judge, politician and Lord High Chancellor of Great Britain. Background and education Simonds was born in Reading, Berkshire, the son of Louis DeLuz ...

discussed why a mistake of law was different from a mistake of fact, because '' ignorantia juris neminem excusat''. He then continued on the question of receiving property.

AC 251, 276.

Lord Normand Wilfrid Guild Normand, Baron Normand, (1884 – 5 October 1962), was a Scottish Unionist Party politician and judge. He was a Scottish law officer at various stages between 1929 and 1935, and a member of parliament (MP) from 1931 to 1935. He ...

Lord Oaksey Geoffrey Lawrence, 3rd Baron Trevethin, 1st Baron Oaksey, (2 December 1880 – 28 August 1971) was the main British judge during the Nuremberg trials after Second World War, and President of the Judicial group. Biography The Lawrence family c ...

, Lord Morton and Lord MacDermott concurred.

Notes

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References