Belmont Finance Corp Ltd v Williams Furniture Ltd (No 2)
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''Belmont Finance Corp Ltd v Williams Furniture Ltd (No 2)'' 9801 All ER 393 is an English trusts law case, concerning breach of trust and
dishonest assistance Dishonest assistance, or knowing assistance, is a type of third party liability under English trust law. It is usually seen as one of two liabilities established in '' Barnes v Addy,'' the other one being knowing receipt. To be liable for dishonest ...
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Facts

Belmont Finance Corp was wholly owned by City Industrial Finance, Mr James the chairman of both. Belmont’s directors paid £500,000 under a scheme to help Maximum Co, owned and controlled by Mr Grosscurth, to buy shares in Belmont from City. This was a breach of
fiduciary duty A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for examp ...
and breach of the prohibition on financial assistance. City received £489,000 ultimately. Belmont later claimed City was liable to account as a constructive trustee.See the headnote of the All England Law Report, at 9801 All ER 393


Judgment

The Court of Appeal held that City Industrial Finance was liable to account. Buckley LJ noted ''
Barnes v Addy ''Barnes v Addy'' (1874) LR 9 Ch Appbr>244ref name="citations" /> was a decision of the Court of Appeal in Chancery. It established that, in English trusts law, third parties could be liable for a breach of trust in two circumstances, referred ...
'' to mean that a stranger who receives some of the trust or assists with knowledge of facts in a dishonest design will be liable. Goff LJ concurred. Waller LJ concurred.


See also

* English trusts law


Notes

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References

* English trusts case law Court of Appeal (England and Wales) cases 1980 in British law 1980 in case law