Re Chapman ex parte Edwards: CA 4 Aug 1884

The solicitor for the petitioning creditor was liable to account to the trustee for money which he had received from the debtor after he (necessarily) had notice of the act of bankruptcy on which the petition was founded and which he had paid to his client before the debtor was adjudicated bankrupt.
Held: The solicitor ‘knew perfectly well that, if an adjudication of bankruptcy was made on the petition, the title of the trustee in the bankruptcy would relate back to the act of bankruptcy, and that all the property which would otherwise have belonged to the bankrupt would be the property of the trustee as from the date of the act of bankruptcy.’ An agent is liable to make restitution to the third party because he knew that his principal was no more entitled to the money than he was himself.


Baggallay LJ


[1884] UKLawRpKQB 166, (1884) 13 QBD 747




England and Wales

Cited by:

CitedRe Dennis (A Bankrupt) CA 22-May-1995
A joint tenancy was severed (under the former law) on the event of an act of bankruptcy, and not only by the later actual adjudication of bankruptcy. The vesting of the debtor’s property in the trustee which occurred on adjudication was automatic; . .
CitedPortman Building Society v Hamlyn Taylor Neck (a Firm) CA 22-Apr-1998
The mortgage advance had been against an express requirement that the client use the property as his private residence. After the client defaulted, the appellant lender discovered that the solicitors acting for themselves and the lay client had . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Agency

Updated: 05 August 2022; Ref: scu.186754