Soton Equity and Trusts - alastairhudson.com
Soton Equity and Trusts - alastairhudson.com
Soton Equity and Trusts - alastairhudson.com
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Bishopsgate Investment Management v. Homan [1995] Ch 211, [1995] 1 All ER 347, [1994]<br />
3 WLR 1270 – Space Investments analysis not possible where an overdrawn account.<br />
*Serious Fraud Office v Lexi Holdings plc [2008] EWCA Crim 1443, [2009] 1 All ER 586,<br />
[2009] QB 376<br />
Re Lehman Brothers (Europe)(No2) [2009] EWHC 3228 (Ch), [2010] EWHC 47 (Ch),<br />
[2010] 2 BCLC 301, Briggs J<br />
Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services Ltd [2011] UKSC 38,<br />
[2011] 3 WLR 521 (anti-deprivation principle).<br />
British Eagle International Airlines Ltd v Cie Nationale Air France [1975] 1 WLR 758 (pari<br />
passu principle)<br />
E. DEFENCES<br />
Reading: Hudson, section 19.7<br />
1. Change of Position<br />
Reading: Hudson, para 19.7.1<br />
a) The test for change of position<br />
**Lipkin Gorman v. Karpnale, supra; per Lord Goff:-<br />
‘Where an innocent defendant’s position is so changed that he will suffer an injustice<br />
if called upon to repay or to repay in full, the injustice of requiring him so to repay<br />
outweighs the injustice of denying the plaintiff restitution.’<br />
Haugesund Kommune v DEPFA ACS Bank [2011] 1 All ER 190, [152], Pill LJ:<br />
“The defence [of change of position] is not fixed in stone, <strong>and</strong> has developed <strong>and</strong><br />
can be expected to develop further over time on a case by case basis. Broadly<br />
speaking the defence is available to a person whose position has so changed that<br />
it would be inequitable in all the circumstances to require them to make restitution<br />
or alternatively to make restitution in full … Concepts of relative fault are not<br />
applicable; good faith being a sufficient requirement in this context … The<br />
defence is to be regarded as founded on a principle of justice designed to protect<br />
the defendant from a claim to restitution in respect of a benefit received by him in<br />
circumstances in which it would be inequitable to pursue that claim or to pursue it<br />
in full …”.<br />
b) Bad faith as a barrier to change of position<br />
*Niru Battery Manufacturing Co <strong>and</strong> anor v Milestone Trading Ltd <strong>and</strong> ors [2003] EWCA<br />
Civ 1446<br />
Maersk Air Ltd v Expeditors International (UK) Ltd [2003] 1 Lloyd’s Rep 491<br />
c) Activity which will constitute a change of position<br />
*Philip Collins Ltd v Davis [2000] 3 All ER 808<br />
*Scottish Equitable plc v. Derby [2001] 3 All ER 818<br />
Barros v MacDaniels Ltd [2004] 3 All ER 299, [2004] EWHC 1188<br />
Campden Hill Ltd v Chakrani [2005] EWHC 911<br />
d) When must the change of position have taken place?<br />
South Tyneside MBC v Svenska International plc [1995] 1 All ER 545<br />
Pearce v Lloyds Bank plc [2001] EWCA Civ 1097<br />
*Dextra Bank <strong>and</strong> Trust Co v Bank of Jamaica [2002] 1 All ER (Comm) 193<br />
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