TRUST LAW PLEASE USE IRAC STRUCTURE TO ANSWER AND USE 3-4 LEGAL CASES TO HELP ANSWER YOUR POINT. USE CASES TO BACK UP YOUR ANSWERS PLEASE TAKE YOUR TIME OR JUST DONT PICK THIS QUESTION!

Essential Reading:

G. Watt,Trusts & Equity, chp 15 OR G. Virgo, The Principles of Equity & Trusts,chp 20

AND

BCCIvAkindele[2001] Ch 437 Royal Brunei Airlinesv Tan[1995] 3 WLR 64 Baden, Delvaux and Lecuit v Societe Generale SA[1983] BCLC 325;

Armstrong DLW GmbH v Winnington Networks Ltd[2012] EWHC 10 (Ch);Ivey v Genting Casinos (UK) Ltd t/a Crockfords[2017] UKSC 67

Gardner, 'Moment of truth for knowing receipt?' (2009) 125LQR20

Personal Remedies against Strangers: Knowing Receipt and Dishonest Assistance

1. Lutador is the sole owner of a trust company, managing various assets for clients. He is a very bad businessman and almost all of his clients terminate his services. In January 2020 he is still trustee for one last trust with one beneficiary, Malificent.

The assets of the trust are 100,000 in cash and a rare and famous ceramic plate designed by Pablo Picasso, entitledVisage De Femme, recently valued by Christie's at 32,000.

Lutador decides that he needs to invest money to improve his professional image to attract more business. Unfortunately, Lutador's own bank account was 2,000 overdrawn. On 01stFebruary 2020 he decides to remove 10,000 from Malificent's trust fund, in breach of trust, and pay it into his own current account ('the Account'), resulting in a new balance of 8,000.

Lutador asks his secretary to arrange all the paperwork transferring the funds from the trust to his personal bank account.

On 3rdFebruary 2020, Lutador takes the ceramic plate to his friend, Tempus Fugit, who is an experienced art-dealer. He offers to sell it to Tempus for 20,000 in cash. Tempus knows he can re-sell it to a collector for 40,000 so buys it immediately without asking any further questions.

Lutador gives the 20,000 cash to his life-partner, Jaundiced View, who spends it it all on cosmetic surgery.

On 12thFebruary 2020, Lutador was adjudicated bankrupt, with no assets and debts in excess of 250,000.

Advise Malificent as to any claims she may be able to make.