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Equitable proprietary claim against a trustee - Mixed bank account: allocating withdrawals

4 important questions on Equitable proprietary claim against a trustee - Mixed bank account: allocating withdrawals

In Re Hallet when Hallet dissipated the money from the account, who was deemed to have owned the money left in the account?

The trustee is presumed to have spent his own money first. Therefore, the remaining balance in the account belonged to the trust and the client.

Explain the facts in Re Oatway and why the beneficiaries were entitled to the Oceana shares purchased using the first withdrawal?

The trustee withdrew money from a mixed bank account and purchased Oceana shares. The trustee later withdrew the balance of the bank account and dissipated it. It was held that the beneficiaries were entitled to the shares purchased with the first withdrawal as the shares were an identifiable and traceable asset.

In a situation where the trustee has purchased an asset but there is sufficient money left in the bank account to cover the trust fund, what can the claimant do?

The claimant might be able to 'cherry pick' choose which payments were his and which were the defendant's so the beneficiary can choose payments in the bank account that have not been dissipated and have increased in value.

If a trustee spends some of the trust money but then later credits the account, can that be regarded as replacing the trust money? If the trustee credits more money than what was dissipated, can the beneficiary claim this? What is the main authority?

If the trustee pays his own money into the account, this does not automatically replace the trust fund unless the trustee showed an intention to restore the trust fund. The 'lowest intermediate balance' in Roscoe v Winder states that the beneficiaries are limited to the lowest balance to which the account sank after the trust money was paid in.

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WS7. Actions against trustees and fiduciaries

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Topics that are related to Equitable proprietary claim against a trustee - Mixed bank account: allocating withdrawals

Equitable proprietary claim against a trustee

Equitable proprietary claim against a trustee - Mixed bank account: allocating withdrawals

4 important questions on Equitable proprietary claim against a trustee - Mixed bank account: allocating withdrawals

In Re Hallet when Hallet dissipated the money from the account, who was deemed to have owned the money left in the account?

Explain the facts in Re Oatway and why the beneficiaries were entitled to the Oceana shares purchased using the first withdrawal?

In a situation where the trustee has purchased an asset but there is sufficient money left in the bank account to cover the trust fund, what can the claimant do?

If a trustee spends some of the trust money but then later credits the account, can that be regarded as replacing the trust money? If the trustee credits more money than what was dissipated, can the beneficiary claim this? What is the main authority?

Topics that are related to Equitable proprietary claim against a trustee - Mixed bank account: allocating withdrawals

Equitable proprietary claim against a trustee

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