Equity and Trusts

1. Equity and Trusts LG 4 Equity’s interventions

2. Implied trusts • Constructive trusts • Fiduciaries • Resulting trusts

3. Unconscionability Activity 1 Scenario 1 Should equity intervene on the ground that Mr Rawlings was unconscionable? Agree/disagree

4. Unconscionability Activity 1 Scenario 2 Should equity intervene on the ground that Mr Rawlings was unconscionable? Agree/disagree

5. Unconscionability: Secret trusts Activity 2

6. Unconscionability: Secret trusts Activity 2 Maxim: Equity will not allow statute to be used as an instrument of fraud

7. (c) Constructive trusts (i) Family homes • Married couples and civil partners – Matrimonial Causes Act 1973 • MCA 1973 does not apply to others

8. Of the 600 cohabitees questioned: • 88% had no written agreement about their share in their home • 60% thought they would get a share through being a ‘common law spouse’ British Social Attitudes Survey 2006

9. Activity 3 • Lucy Is the court likely to impose a constructive trust on Fraser? Yes/no

10. Activity 3 • José Is the court likely to impose a constructive trust on Gemma? Yes/no

11. (d) Will equity intervene in all cases of unconscionability? Activity 4 “the court does not, as yet, …..exercise a general discretion to do what the man in the street, on a general overview of the case, might regard as fair” (Lord Dillon Springette v Defoe 1992)

12. 2. Fiduciary duties

13. 2. Fiduciary duties Best interests of the trust? My interests ££

14. Fiduciary duties • Solicitors owe fiduciary duties to clients • Directors owe fiduciary duties to their companies • Senior employees owe fiduciary duties to their employers

15. 3. Resulting trusts Activity 5

16. What comes next? • Stage 2 starts with LG 5 • Formative assessment in WS 4