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Chapter

Cover Pearce & Stevens' Trusts and Equitable Obligations

34. Remedies against the trustee for breach of trust  

This chapter examines the nature of liability for breach of trust. Trusts impose obligations on the trustees, and the trustees can be held liable for breach of trust if their failure to meet the obligations imposed upon them causes a loss. The liability of a trustee for a breach of trust is a personal liability, and any remedy is available only against the trustee as an individual, and not against any specific assets. If the trustee in breach has died, their personal liability continues against their estate. There may be separate remedies in relation to any assets retained by the trustee or in the hands of a third party, and different remedies are also available for breach of fiduciary duty.

Chapter

Cover Smith, Hogan, and Ormerod's Criminal Law

8. Corporate and vicarious liability  

David Ormerod and Karl Laird

This chapter focuses on the potential criminal liability of organizations, particularly corporations. Corporations have a separate legal identity and are treated in law as having a legal personality distinct from the people who make up the corporation. Therefore, in theory at least, criminal liability may be imposed on the corporation separately from any liability imposed on the individual members. There are currently six ways in which a corporation or its directors may be prosecuted: personal liability of corporate directors, etc; strict liability offences; statutory offences imposing duties on corporations; vicarious liability; the identification doctrine; and statutory liability of corporate officers. The chapter also discusses the limits of corporate liability, the distinction between vicarious liability and personal duty, the application of vicarious liability, the delegation principle and the ‘attributed act’ principle. The chapter examines the failure to prevent offences found in the Bribery Act 2010 and the Criminal Finances Act 2017.

Chapter

Cover Company Law

6. Corporate capacity and liability  

This chapter focuses on the complex rules regarding who can act on behalf of the company, and how liability can be imposed on the company for the actions of others. A company can enter into a contract by affixing its common seal to the contract, by complying with the rules in ss 44(2)–(8) of the Companies Act 2006 (CA 2006), or by a person acting under the company’s express or implied authority. Section 39 of the CA 2006 provides that a contract cannot be invalidated on the ground that the contract is outside the scope of the company’s capacity. Meanwhile, section 40 of the CA 2006 provides that the power of the directors to bind the company, or authorize others to do so, is free of any limitation under the company’s constitution. The chapter then considers the four methods of liability: personal liability, strict liability, vicarious liability, and liability imposed via attribution.

Chapter

Cover Smith, Hogan, & Ormerod's Text, Cases, & Materials on Criminal Law

25. Liability of corporations  

This chapter discusses the ways in which organizations and their members might be held liable in criminal law. It covers personal liability of individuals within an organization; vicarious liability; corporate liability: by breaching a statutory duty imposed on the organization, by committing strict liability offences, by being liable for the acts of individuals under the identification doctrine, and the specific statutory liability of organizations for homicide under the Corporate Manslaughter and Corporate Homicide Act 2007; and liability of unincorporated associations.

Chapter

Cover Casebook on Tort Law

19. Damages for death and personal injuries  

The law relating to damages for personal injuries is a large and complicated subject. Where a living claimant sues, the award will usually be for a lump sum to compensate for such matters as loss of future income, pain, suffering and loss of amenity. This once and for all payment has the advantage of finality and is preferred by many claimants, but there may be occasions where it is inappropriate. The chapter focuses on what damages are awarded for in tort law and how they are calculated, as well as some of the criticisms and problems that such calculations often raise. It discusses types of action for damages, calculation of loss of earnings and other losses and intangible losses.

Chapter

Cover Equity & Trusts

17. Personal Claims and Remedies  

Paul S Davies and Graham Virgo

All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing able students with a stand-alone resource. This chapter considers the personal liability of trustees for breach of trust and studies proprietary remedies, which involve the claimant’s recovering particular property from the defendant, or obtaining a security interest in the defendant’s property. Proprietary remedies provide the crucial advantage of providing the claimant with priority over other creditors in the event of the defendant’s insolvency. Personal claims, by contrast, do not enjoy such priority over the claims of others. However, where the defendant is solvent and the property in question has fallen in value, a personal remedy for the value of the claimant’s loss or defendant’s gain may be preferable to a proprietary remedy. Personal remedies are also to be preferred when the property in which the claimant had a proprietary interest has been dissipated, because in such circumstances no proprietary remedy will be possible.

Chapter

Cover Trusts & Equity

15. The equitable personal liability of strangers to the trust  

Even if a trust beneficiary successfully traces misappropriated trust property, he will only be entitled to a proprietary remedy against a stranger, who retains possession or control of the trust property. The beneficiary’s proprietary claim will fail if the stranger received the trust property, but has not retained it. However, the beneficiary (or the trustee) may be able to bring a claim against the stranger personally if the receipt was wrongful. This chapter analyses the circumstances in which a stranger may be personally liable in equity for analogous wrongs. After providing an overview of who strangers are, it examines a number of policy considerations and practical measures designed to give strangers some degree of protection. The chapter also looks at trusteeship de son tort, personal liability in equity for receipt, and equitable liability for assistance in a breach of trust.

Chapter

Cover Commercial Law

18. Product liability  

Product liability is concerned with circumstances where a product has been supplied and causes damage by virtue of some characteristic that might be described as a defect. The main source of law in this area lies in relation to contracts for the sale of goods, where normally the relationship between a buyer and a seller will be regulated by their contractual arrangements, including any valid exclusion clauses. Problems arise however, even in relation to actions by buyers against sellers where the seller is, for example, insolvent or untraceable, or perhaps where he is protected from contractual liability by an exclusion clause. Further, the defective goods may not only injure the buyer, and the contract is unlikely to provide a remedy for potential claimants not party to the contract of supply, since it must be comparatively rare for such a person to derive any benefit from the Contracts (Rights of Third Parties) Act 1999. In such circumstances a claimant, whether buyer or not, will be forced to rely on the law of tort or on statute for a remedy. This chapter examines such claims firstly those founded on negligence at common law and then under statute where there is strict liability for defective products.

Chapter

Cover A Practical Approach to Civil Procedure

9. Personal Injury Claims under £25,000  

Out of the estimated 850,000 personal injuries claims each year in the UK, about 650,000 cases arise from road traffic accidnets (RTAs), 80,000 are employer’s liability cases (EL), and 75,000 are public liability cases (PL). About 90 per cent of these are cases where the damages are estimated at below £25,000. This chapter discusses cases covered by the RTA and EL/PL protocols; the provisions of the RTA protocol; the process under the RTA protocol: claim notification, medical evidence and negotiation, and Part 8 claim to determine quantum; child settlement applications; fixed costs under the RTA and EL/PL protocols; and cases where parties can stop following the RTA or EL/PL protocols.

Chapter

Cover Company Law

3. Lifting the veil  

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter discusses ‘lifting the veil’, a phrase that refers to situations where the judiciary or the legislature have decided that the separation of corporate personality from the members must not be maintained. In this case, the veil of incorporation is said to be lifted. ‘Lifting’ is also known as ‘peeping’, ‘penetrating’, ‘piercing’, or ‘parting’. The chapter presents statutory examples of veil lifting, many of which involve corporate group structures and others involve straightforward shareholder limitation of liability issues. It also considers cases of veil lifting by the courts as well as classical veil lifting during the periods of 1897 to 1966, 1966 to 1989, and 1989 to the present. Four cases are highlighted: Adams v Cape Industries (1990), Chandler v Cape Plc (2012), Prest v Petrodel Industries Ltd (2013), and Hurstwood Properties (A) Ltd and others v Rossendale Borough Council and another (2021) as well as important recent case development. The chapter also examines claims of tortious liability, the liability of a parent company for personal injury, and commercial tort. Finally, it looks at the costs and benefits of limited liability.

Chapter

Cover Trusts & Equity

15. The equitable personal liability of strangers to the trust  

Even if a trust beneficiary successfully traces misappropriated trust property, he will only be entitled to a proprietary remedy against a stranger, who retains possession or control of the trust property. The beneficiary’s proprietary claim will fail if the stranger received the trust property, but has not retained it. However, the beneficiary (or the trustee) may be able to bring a claim against the stranger personally if the receipt was wrongful. This chapter analyses the circumstances in which a stranger may be personally liable in equity for analogous wrongs. After providing an overview of who strangers are, it examines a number of policy considerations and practical measures designed to give strangers some degree of protection. The chapter also looks at trusteeship de son tort, personal liability in equity for receipt, and equitable liability for assistance in a breach of trust.

Chapter

Cover Tort Law Directions

9. Vicarious liability  

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams, and exercises help readers to engage fully with each subject and check their understanding as they progress. In general, liability is based on the personal fault of the wrongdoer himself. A person is liable only for his own acts, and a defendant will usually be free of any liability unless he has negligently or intentionally caused the harm or damage to the claimant. However, a person who has no fault or personal blame may also be held liable for the damage caused by the tort of another. This is known as vicarious liability, which is most common in the workplace and imposes liability without the need to prove that the defendant is at fault.

Chapter

Cover Tort Law Directions

8. Employers’ liability and non-delegable duties  

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams, and exercises help readers to engage fully with each subject and check their understanding as they progress. Employment contracts implicitly require an employer to take all reasonable care to ensure the health and safety of his or her employees. An employee who suffers an injury due to the tort of another employee may make the employer vicariously liable. In addition, the employer has a personal non-delegable duty of care to ensure that his employees are safe in the workplace. This chapter looks at the various sources of employers’ liability for workplace accidents and discusses the distinction between vicarious liability and personal liability. It also examines the non-delegable nature of the employer’s duty and considers developments in employer’s liability for occupational stress.

Chapter

Cover The Principles of Equity & Trusts

20. Personal Liability of Third Parties  

This chapter examines the personal liability of third parties when there is a breach of trust or breach of fiduciary duty. It explains that there are two types of personal liability of third parties. One is receipt-based liability when a third party has received property in which the beneficiary or principal has an equitable proprietary interest and the other is accessorial liability when the third party has encouraged or assisted a breach of trust or fiduciary duty. The elements of different causes of action relevant to receipt-based liability and accessorial liability are examined, notably the action for unconscionable receipt and the action of dishonest assistance. The controversial question of whether liability should be strict or fault-based is considered and, if the latter, the nature of the fault requirement.

Chapter

Cover The Principles of Equity & Trusts

20. Personal Liability of Third Parties  

This chapter examines the personal liability of third parties when there is a breach of trust or breach of fiduciary duty. It explains that there are two types of personal liability of third parties. One is receipt-based liability when a third party has received property in which the beneficiary or principal has an equitable proprietary interest and the other is accessorial liability when the third party has encouraged or assisted a breach of a trust or fiduciary duty. The elements of different causes of action relevant to receipt-based liability and accessorial liability are examined, notably the action for unconscionable receipt and the action of dishonest assistance. The controversial question of whether liability should be strict or fault-based is considered and, if the latter, the nature of the fault requirement.

Chapter

Cover Tort Law Directions

7. Negligence: occupiers’ liability  

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams, and exercises help readers to engage fully with each subject and check their understanding as they progress. While tort law is largely based on case law developed by judges through the common law, the liability of occupiers for the injuries suffered by those on their premises is governed by two statutes: the Occupiers’ Liability Act 1957 and the Occupiers’ Liability Act 1984. The chapter explains the scope of an occupier’s liability and how it relates to other aspects of negligence, considers the duty of care owed by occupiers to lawful visitors under the Occupiers’ Liability Act 1957, discusses the duty of care owed by occupiers to trespassers under the Occupiers’ Liability Act 1984 and how it relates to the previous common law duty of care.

Chapter

Cover An Introduction to Tort Law

2. Negligence  

Celebrated for their conceptual clarity, titles in the Clarendon Law Series offer concise, accessible overviews of major fields of law and legal thought. This chapter discusses the tort of negligence. It elaborates on duty of care based on foreseeability, proximity, assumption of responsibility, property damage and personal injury, purely economic harm, psychiatric harm, less serious upset, and liability for omissions. It argues that the common law duty is higher when it requires a person to take active steps to protect others than when it requires only that he refrain from positively causing an injury. But once it is held that a duty exists, its level is always, apparently, the same: it is the duty to take such care as in all the circumstances of the case is reasonable.

Chapter

Cover Street on Torts

16. Product liability  

This chapter examines the provisions of tort law concerning product liability. It explains that a defendant can be held liable for a defective product that causes personal injuries or causes damage to property and that the liability for failure to take care in the manufacture of a product causing personal injury was established in the case of Donoghue v Stevenson. The chapter discusses the limitations of the tort of negligence and suggests that, in the majority of cases, claimants should bring their actions for defective products under the Consumer Protection Act 1987 because it does not require proof of fault.

Chapter

Cover Trusts & Equity

13. Breach of trust: the personal liability of trustees  

The powers enjoyed by trustees are incidents of their legal ownership of the trust property, whereas their duties are incidents of their personal office. The beneficiary of any trust, even if it is a discretionary trust, has locus standi (which means ‘a place to stand’, used to describe a claimant’s right to be heard in a court of law) to bring an action against trustees for breach of trust. Common law concepts such as causation are increasingly being introduced to limit trustees’ liability for breaches of bare trusts in commercial contexts. This chapter examines the nature and potential extent of trustees’ liability for breach of their duties, along with the remedies that are available against trustees when they breach their trust. It also looks at defences that may be available to trustees in breach and, in the absence of defences, whether trustees may be relieved of personal liability.

Chapter

Cover Essential Cases: Equity & Trusts

Re Montagu’s Settlement Trusts [1987] Ch 264, Chancery Division  

Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Re Montagu’s Settlement Trusts [1987] Ch 264, Chancery Division. The document also includes supporting commentary from author Derek Whayman.