Remedies for Breach of Trust

14 Pages Posted: 2 Jul 2015

See all articles by Paul S. Davies

Paul S. Davies

Congressional Research Service

Date Written: July 2015


The decision of the Supreme Court in AIB Group (UK) Plc v Mark Redler & Co confirms the approach taken by Lord Browne‐Wilkinson in Target Holdings Ltd v Redferns: where a trustee misapplies trust assets, a beneficiary is limited to a claim for equitable compensation for losses caused by the trustee's breach of duty. This seems to be a departure from traditional equitable doctrine, which held that the beneficiary could falsify the trustee's unauthorised disbursement and bring a claim for an ‘equitable debt’. This note considers the impact of the decision of the Supreme Court, and how the law regarding ‘equitable compensation’ might continue to develop.

Keywords: Breach of trust, Trustee's Liability, Equitable compensation, Causation

Suggested Citation

Davies, Paul S., Remedies for Breach of Trust (July 2015). The Modern Law Review, Vol. 78, Issue 4, pp. 681-694, 2015, Available at SSRN: or

Paul S. Davies (Contact Author)

Congressional Research Service ( email )

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Washington, DC 20540
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