Pawlowski, Mark ORCID: 0000-0002-5473-5809 (2022) Trustees: tracing and the rule in Clayton's case. Trusts and Estates Law & Tax Journal (236). pp. 6-11. ISSN 1743-5501 (Print), https://www.lawjournals.co.uk/2012/08/16/trusts-estates-law-and-tax-journal/trustees-tracing-claytons-case/ (Online)

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Abstract

The rule in Clayton’s case (1816) 1 Mer 572, despite being potentially capricious and arbitrary (being based purely on a coincidence of time), continues to have application in the context of competing beneficial claims to a mixed fund in a running account. However, recent cases illustrate the modern judicial trend of limiting the effect of Clayton’s case. The primary mechanism being adopted for this purpose is that of the parties’ presumed or inferred intention, although the overall injustice and complexity surrounding the operation of the rule, particularly in cases involving substantial funds and a large body of investors, are clearly also governing principles. Priority in time, although once seen as a convenient basis for allocation of payments between competing contestants, is now viewed as anomalous and irrational.

Item Type:	Article
Uncontrolled Keywords:	bank accounts, tracing, mixing, trustee, breach of trust, presumed intention of parties, collective investment, justice of the case
Subjects:	K Law > K Law (General)
Faculty / School / Research Centre / Research Group:	Faculty of Liberal Arts & Sciences Faculty of Liberal Arts & Sciences > School of Law & Criminology (LAC)
Last Modified:	30 Aug 2022 06:57
URI:	http://gala.gre.ac.uk/id/eprint/37200

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