Independent Trustee Services Ltd v GP Noble Trustees Ltd & Ors

Independent Trustee Services Ltd v GP Noble Trustees Ltd & Ors

Once the consent order under which Mrs Morris received the £1.481m was set aside for material non-disclosure, she could no longer rely on the bona fide purchaser for value without notice defence. The proprietary interest of the pension schemes, represented by ITS, was no longer defeasible by her prior status, and ITS was entitled to trace the funds into her hands, subject to issues of tracing and personal liability to be determined in further proceedings.

Parties
Appellant/claimant: Independent Trustee Services Limited; Respondents/defendants: GP Noble Trustees Limited & Others; Respondent/defendant: Susan Morris
Jurisdiction
England and Wales
Judgment Date
28 February 2012
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Tracing of Trust Assets, Bona Fide Purchaser Defence, Setting Aside Consent Orders, Ancillary Relief, Fraudulent Misappropriation, Constructive Trusts
Trust Law Family Law Equity Restitution Tracing of Trust Assets Bona Fide Purchaser Defence Setting Aside Consent Orders Ancillary Relief +2 more

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Parties

Independent Trustee Services Limited

Appellant/claimant

GP Noble Trustees Limited & Others

Respondents/defendants

Susan Morris

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether Mrs Morris could resist a proprietary tracing claim by ITS to £1.481m received as part of a set-aside ancillary relief order on the basis of being a bona fide purchaser for value without notice.
  2. 2 Whether rescission of the consent order removes the bona fide purchaser defence.
  3. 3 Whether ITS can enforce its beneficial interest in the funds independently of Mr Morris.

Ratio Decidendi

Once the consent order under which Mrs Morris received the £1.481m was set aside for material non-disclosure, she could no longer rely on the bona fide purchaser for value without notice defence. The proprietary interest of the pension schemes, represented by ITS, was no longer defeasible by her prior status, and ITS was entitled to trace the funds into her hands, subject to issues of tracing and personal liability to be determined in further proceedings.

Court Disposition

Appeal allowed

Orders

  • Declaration that ITS is beneficially entitled to the traceable proceeds of the £1.481m received by Mrs Morris.
  • All consequential matters, including tracing and personal liability, remitted to the Chancery Division for further directions.