''Reading v Attorney-General''
UKHL 1is an English trusts law">951
UKHL 1is an English trusts law case, concerning constructive trusts.
Facts
Mr Reading was stationed in Egypt as an army sergeant. Smugglers paid him to ride in their lorries, while they were doing their smuggling of illegal spirits (whisky and
brandy
Brandy is a liquor produced by distilling wine. Brandy generally contains 35–60% alcohol by volume (70–120 US proof) and is typically consumed as an after-dinner digestif. Some brandies are aged in wooden casks. Others are coloured with ...
), while visibly wearing his army uniform, hence making a search less likely. Mr Reading got between £1000 and £4000 each time, but was caught. The Crown seized the money he was paid, £19,325 4s 8d in total, and put him in prison. Mr Reading claimed that the money should be returned under an action for
money had and received. The Crown argued it was entitled to retain the sums, which must have been received in "trust" for the Crown.
Judgment
The House of Lords held that the Crown could retain the money for many reasons, including that Mr Reading was in a fiduciary position. He was required to give up all unauthorised profits to his principal, the Crown.
Lord Porter said the following.
See also
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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 ...
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English land law
English land law is the law of real property in England and Wales. Because of its heavy historical and social significance, land is usually seen as the most important part of English property law. Ownership of land has its roots in the feudal ...
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English property law
Notes
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References
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English trusts case law
House of Lords cases
1951 in British law
1951 in case law