A constructive trust arises over moneys paid by mistake and without consideration from the time the recipient acquires knowledge of the mistake (including wilful and reckless failure to inquire), provided the moneys can still be identified. The knowledge standard is analogous to that under the second limb of Barnes v Addy. A liquidator who directs payment of trust moneys to third parties is treated as the recipient of those payments and is personally liable under the first limb of Barnes v Addy. The mere receipt of money paid by mistake does not, without more, give rise to a trust — Chase Manhattan is not followed in Australia.
The full text is available to signed-in members, including the 36 later cases that cite this judgment.
1 of the 36 citing cases carry a classified treatment. How each court treated it is available to signed-in members.