D - Dishonest Assistance
19/2/14
WILLIAMS v CENTRAL BANK OF NIGERIA [2014] UKSC 10
The claimant claimed that a solicitor, who had held money on trust for him in a client account, fraudulently paid the money to an account with the defendant bank which was liable as a constructive trustee for dishonest assistance and knowing receipt. The Court of Appeal had been wrong to hold that the claims fell within s 21(1) Limitation Act 1980 as an action by a beneficiary under a trust in respect of any fraud or fraudulent breach of trust to which the trustee was a party or privy. Section 21 covers trustees proper not accessories liable under a remedial constructive trust. The claims for knowing receipt and dishonest assistance were therefore subject to a 6 year limitation period and were time-barred.
3/4/12
CENTRAL BANK OF NIGERIA v WILLIAMS [2012] EWCA Civ 415, [2013] QB 499
The claimant claimed that a solicitor, who had held money on trust for him in a client account, fraudulently paid the money to an account with the defendant bank which was liable as a constructive trustee for dishonest assistance. It was held that both the claim against the solicitor and the claim against the bank fell within s 21(1) Limitation Act 1980 as an action by a beneficiary under a trust in respect of any fraud or fraudulent breach of trust to which the trustee was a party or privy. Section 21 extends to claims against both the trustee and anyone who dishonestly assisted him in the fraud or fraudulent breach of trust. Such claims can therefore be brought outside the 6 year limitation period which would otherwise apply under s 21(3).
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