Lloyd LJ said: ‘a transferee of the legal title to property under a disposition made in breach of trust, or a successor in title to such a person, does not have the beneficial title to the property, which remains held on the original trusts, unless either the transferee, or a successor in title, was a bona fide purchaser for value without notice. The trustee acting in breach of trust can transfer the legal title, but cannot vest the beneficial interest in the property in a bona fide purchaser for value without notice, since he does not own that title and is not acting in a way which enables him, under the trust, to overreach the beneficiaries’ equitable interest. Despite that inability, the availability of the bona fide purchaser defence means that a transaction in favour of a bona fide purchaser for value without notice is as effective as it would be if he could vest the beneficial title in the purchaser. Thereafter the purchaser can deal with the asset free from any prior claim of the beneficiaries.’
Judges:
Lloyd, Patten, Tomlinson LJJ
Citations:
[2012] EWCA Civ 195, [2012] WLR(D) 55, [2013] Ch 91, [2012] 3 WLR 597, [2012] 3 FCR 1, [2012] WTLR 1171, [2012] 3 All ER 210
Links:
Jurisdiction:
England and Wales
Citing:
See Also – Independent Trustee Services Ltd v GP Noble Trustees Ltd and Others ChD 26-Jan-2009
Application to vary a freezing order made on a without notice application.
Held: Lewison J set out the proper approach at para. 6 by setting out the four questions which should be addressed: ‘(1) does the claimant have an arguable proprietary . .
Appeal from – Independent Trustee Services Ltd v GP Noble Trustees Ltd and Others ChD 14-Dec-2010
An application was made under Part 3.1(7) to vary an earlier final order made by the judge after a trial, on the application of the wife of one of the defendants whose potential interest in funds subject to the judge’s order had been overlooked by . .
Cited by:
Cited – Akers and Others v Samba Financial Group SC 1-Feb-2017
Saad Investments was a Cayman Islands company in liquidation. The liquidator brought an action here, but the defendant sought a stay saying that another forum was clearly more appropriate. Shares in Saudi banks were said to be held in trust for the . .
Cited – Akers and Others v Samba Financial Group SC 1-Feb-2017
Saad Investments was a Cayman Islands company in liquidation. The liquidator brought an action here, but the defendant sought a stay saying that another forum was clearly more appropriate. Shares in Saudi banks were said to be held in trust for the . .
Lists of cited by and citing cases may be incomplete.
Trusts
Updated: 18 July 2022; Ref: scu.451678