In this case, trustees under a will, who were solicitors, had by mistake transferred stock to a person not entitled. Baron Alderson said, this being under circumstances of mistake, it appeared clear to him that the Plaintiffs were entitled to equitable relief ; for, on looking into the authorities he found that fraud or mistake were each of them grounds for relief in equity. Then came the question, whether the Statute of Limitations was a bar? The Statute of Limitations did not apply to Courts of Equity so as to bind them, Undoubtedly, they had exercised discretion, and very rightly, upon the rules laid down. For instance, in cases of fraud, Courts of Equity did not apply the rule in the same manner as Courts of law, which were so bound by the words of the statute, that if the cause of action bad occurred more than six years before, however equitabIe it might be, they could not permit the statute to run. Courts of Equity held, that in cases of fraud, the statute of Limitations ran from the discovery of the fraud, It appearet to jim that cases of mistake fell under the same rule, and that it would be inequitable to apply the Statute of Limitations, except in cases where a party had lain by after the mistake had been discovered, more than six years ; in this case the mistake had been discovered within six years, the statute did not, therefore, bar the Plaintiff’s claim.
Judges:
Baron Alderson
Citations:
[1836] EngR 447, (1836) Donn Eq 11, (1836) 47 ER 193 (B)
Links:
Jurisdiction:
England and Wales
Citing:
See Also – Smith v Brooksbank 25-Jun-1834
A bequeathed a reversionary interest, expectant on his wife’s death, in a sum of stock to B. B. bequeathed it to C., and C. bequeathed it to D, who, on the death of A’s wife, filed a bill against the trustees to have the stock transferred to him, . .
Cited by:
See Also – Brooksbank And Another v Smith 24-Feb-1836
The testatrix died in 1818 leaving a fund in trust, subject to a life interest, for her children in equal shares, with substitutional gifts if any child predeceased her leaving issue. Her daughter Elizabeth did predecease her by two months, but on . .
Cited – Test Claimants In The Franked Investment Income Group Litigation v Inland Revenue SC 23-May-2012
The European Court had found the UK to have unlawfully treated differently payment of franked dividends between subsidiaries of UK companies according to whether all the UK subsidiaries were themselves UK based, thus prejudicing European . .
Lists of cited by and citing cases may be incomplete.
Equity, Limitation
Updated: 29 September 2022; Ref: scu.314779
