Year 12s: what will be the first way you research your future options? >>

TRUSTS LAW - Tracing

1) Is money obtained as a result of a breach of trust traceable when it has been used to pay a mortgage of another persons house?

Does the rule that money used to pay off a debt is not traceable apply here also?

2) Can a company who has legal title to money in an account be able to trace in equity as well as common law when the money is taken in a breach of trust?

Thanks

(edited 11 years ago)

Reply 1

gethsemane342

I *think*:

1) Would subrogation not apply? If you take my money to pay off M's charge, why can't I subrogate to the charge?

2) I think in theory, no. But given the amount of confusion about this rule and the dicta in Foskett that the rules are the same, it's arguable to say you should be able to.

If anyone knows this is wrong, please tell me :smile: