› Where director of corporate trustee used money borrowed on security over the corporate trustee’s assets to acquire properties
› Where director of corporate trustee caused trust funds to be distributed to himself
Equity
› Trustee de son tort
› Whether doctrine applies
› Where trustee a director of the corporate trustee
› Where trust funds paid to entities controlled by trustee de son tort
› Held doctrine applies where a person deals with trust assets without power to do so
› Held whether trust funds paid to trustee de son tort’s alter ego is immaterial
Equity
› Alternative claim
› Claim that director was knowing recipient of trust property
› Claim that director induced or procured breach of trust by corporate trustee
› Claim that director knowingly participated in a fraudulent design by corporate trustee
› Corporate trustees only capable of acting through individuals
› Held attributing primary liability to corporate entity is mischaracterisation of facts where only conduct giving rise to breach of trust is that of director
Equity
› Alternative claim
› Decision to distribute trust funds not made honestly and in good faith
› Held claim inconsistent with director liability on the facts of the case
Case Details
Citation[2020] NSWSC 1159
CourtNSWSC
JurisdictionNew South Wales
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