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accessory liability in breach of trust
If a stranger knowingly and dishonestly assists a trustee in a breach of trust he will be liable as an accessory (Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 (PC)). He will not usually have received any trust assets; however, in consequence of his dishonest assistance in the breach he will be personally liable to account to the trust for any losses arising from his actions. Such a person is sometimes referred to as a constructive trustee, but this terminology is problematic and best avoided. The test for “dishonesty” is an objective one (Barlow Clowes International v Eurotrust International [2005] UKPC 37, [2006] 1 WLR 1476). |