In re Condon, Ex parte James: 1874

The Trustee in bankruptcy has relevant duties as the Trustee as an officer of the Court. Such a Trustee would not engage in conduct which could be seen to involve an unfair use of that position, and ‘where it would be unfair’ for a trustee in bankruptcy ‘to take full advantage of his legal rights as such, the court will order him not to do so’. The court will permit a mistake of law rule to be invoked to prevent repayment of sums paid under an error of law to or by a trustee in bankruptcy as an officer of the court.


(1874) LR 9 Ch App 609, [1874-80] All ER 388


England and Wales

Cited by:

CitedKleinwort Benson Ltd v Lincoln City Council etc HL 29-Jul-1998
Right of Recovery of Money Paid under Mistake
Kleinwort Benson had made payments to a local authority under swap agreements which were thought to be legally enforceable when made. Subsequently, a decision of the House of Lords, (Hazell v. Hammersmith and Fulham) established that such swap . .
CitedIn re Nortel Companies and Others SC 24-Jul-2013
The court was asked as to the interrelationship of the statutory schemes relating to the protection of employees’ pensions and to corporate insolvency.
Held: Liabilities which arose from financial support directions or contribution notices . .
CitedIn re Multi Guarantee Ltd CA 1987
Nourse LJ said of the Condon Case: ‘The principle of cases such as those is that the court will direct a trustee in bankruptcy not to insist on his full legal rights if it would be unacceptable for him to do so. The principle is subject to . .
Lists of cited by and citing cases may be incomplete.

Equity, Insolvency

Updated: 14 May 2022; Ref: scu.236545