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Brooksbank v Smith; 24 Feb 1836

References: , [1836] EngR 447, (1836) Donn Eq 11, (1836) 47 ER 193 (B)
Links: Commonlii
Coram: Baron Alderson
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.
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