“The liability of a knowing recipient of money transferred in breach of trust did not depend solely on such receipt in breach of trust but on his retaining the money or paying it away in circumstances where it was unconscionable to do so; therefore, adopting a wide view of s 1 of the Civil Liability (Contribution) Act 1978, the liability to make good the loss could properly be referred to as liability to compensate the party defrauded, and came within the scope of the Act. There was no rule of law or practice that the knowing recipient should bear 100% of the loss; that would impose an unjustified restriction on the discretion conferred by the wide scope of s 2 of the 1978 Act. The matter would depend on the facts of the particular case, which could only be assessed at trial.”
WLR Daily, 8th January 2008
Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.