''Re Oatway''
9032 Ch 356 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 tracing.
Facts
Mr Oatway was a trustee of Charles Skipper’s will. He took £3000 of trust money and mixed it with £4000 of his own. He used £2137 from the fund to buy shares in the
Oceana Company
Oceana Company was a Dutch indie rock band comprising Matthijs Herder (vocals/guitar/mellotron), Michiel Ferweda (guitar), Han Schilder (bass guitar) & Robert Koole (drums). Their music is notable for its melancholic and psychedelic overtones, and ...
, and dissipated the rest. Then he died. The beneficiaries of the Skipper trust wished to trace their money into the £2475 that were the proceeds of the shares.
Judgment
Joyce J held the beneficiaries could claim the proceeds of the shares. A trustee cannot say the purchased assets were not bought with trust money.
This was just as true as that a trustee cannot rely on Clayton’s case to say that it was the beneficiary’s money taken out first and spent.
[ 903Ch 356, 360]
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 ...
*''
Turner v Jacob''
006
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EWHC 1317 (Ch),
008WTLR 307, Patten J held the Re Hallett presumption of a trustee spending his own money first applies where there are sufficient funds left over in a bank account to satisfy a claim by a beneficiary.
*''
Shalson v Russo''
EWHC 1637 [144">003
EWHC 1637 [144suggested the beneficiary can cherry pick whichever is more favourable, as for physical mixtures.
*''Foskett v McKeown'', para 132, Lord Millett also.
Notes
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References
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English trusts case law
High Court of Justice cases
1903 in British law
1903 in case law