Falsifying the Trust Account and Compensatory Equitable Compensation

Abstract

The scope of decision of the United Kingdom Supreme Court in AIB Group v Mark Redler & Co will only be understood in view of its treatment in subsequent decisions, but it is submitted it is frail authority for the view that a beneficiary will be unable to falsify the trust account where property has been misappled. In this paper it is contended, first, that an alternative analysis of the facts in AIB Group indicates that the case was, plausibly, wrongly decided. Second, the uncertain ratio of the case will be examined to point out fact situations where the case should not be followed.

Keywords: Equity, Trusts and Trustees, Breach of Trust, Liability to Account, Falsifying the Trust Account, Equitable Compensation, AIB Group v Redler