Pawlowski, Mark ORCID: https://orcid.org/0000-0002-5473-5809 (2026) A critique of the rule in Clayton's case. Trusts and Trustees, 32 (3). pp. 119-123. ISSN 1363-1780 (Print), 1752-2110 (Online) (doi:10.1093/tandt/ttag003)

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Abstract

Under the so-called rule in Clayton’s case (Devaynes v Noble, Baring v Noble (1816) 1 Mer 572; 35 ER 767), where a trustee mixes the funds of two separate trusts, or an innocent volunteer mixes trust money with his own money, in an active (running) bank account, withdrawals out of the account are presumed to be made in the same order as payments in (ie, first in, first out). The rule has been criticised both judicially and academically and is the subject of a number of exceptions. This article takes a critical look at the rule and asks whether it still has application in the context of a tracing claim.

Item Type:	Article
Uncontrolled Keywords:	bank accounts, trust fund, equitable tracing, rule in Clayton's case, exceptions to the rule, trusts, withdrawals, trust moneys, mixing
Subjects:	K Law > K Law (General) K Law > KD England and Wales
Faculty / School / Research Centre / Research Group:	Faculty of Law, Arts and Social Sciences Faculty of Law, Arts and Social Sciences > School of Law and Criminology
Last Modified:	08 Sep 2026 11:31
URI:	https://gala.gre.ac.uk/id/eprint/54037

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