Cattley & Anor v Pollard & Ors [2006] EWHC 3130 (Ch) (07 December 2006)

Cattley & Anor v Pollard & Ors [2006] EWHC 3130 (Ch) (07 December 2006)

Claims for dishonest assistance in a fraudulent breach of trust do not fall within s. 21(1)(a) of the Limitation Act 1980 and are subject to the six-year limitation period under s. 21(3). There was no pre-existing trust relationship on the part of the defendant before the impugned transactions. The doctrine of laches does not apply to the tracing claim, which is governed by a statutory limitation period. The claimants' arguments based on historic treatment of accessories as express trustees are not good law in light of modern authority.

Citation
[2006] EWHC 3130 (Ch)
Parties
Claimant: Frank David George Cattley; Claimant: Liam James Paul O'Malley; Defendant: Nigel Guy Pollard; Defendant: Linda Jane Pollard
Jurisdiction
England and Wales
Judgment Date
07 December 2006
Procedural Posture
Chancery Division Civil Claim (trusts/fraud) / Trial of Preliminary Issues on Limitation and Laches
Outcome
Dishonest assistance claims are subject to a six-year limitation period; tracing claim is not time-barred; laches does not apply to the tracing claim.
Legal Topics
Limitation of Actions, Dishonest Assistance, Constructive Trusts, Fraudulent Breach of Trust, Tracing, Laches
Equity and Trusts Civil Procedure Limitation of Actions Dishonest Assistance Constructive Trusts Fraudulent Breach of Trust Tracing Laches

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Parties

Frank David George Cattley

Claimant

Liam James Paul O'Malley

Claimant

Nigel Guy Pollard

Defendant

Linda Jane Pollard

Defendant

Procedural Posture

Chancery Division Civil Claim (trusts/fraud) / Trial of Preliminary Issues on Limitation and Laches

Legal Issues

  1. 1 Does s. 21(1)(a) of the Limitation Act 1980 apply to claims for dishonest assistance in a fraudulent breach of trust?
  2. 2 If not, does s. 21(3) apply and has time begun to run for beneficiaries with future interests?
  3. 3 Does s. 32 of the 1980 Act postpone limitation due to fraud/discovery?

Ratio Decidendi

Claims for dishonest assistance in a fraudulent breach of trust do not fall within s. 21(1)(a) of the Limitation Act 1980 and are subject to the six-year limitation period under s. 21(3). There was no pre-existing trust relationship on the part of the defendant before the impugned transactions. The doctrine of laches does not apply to the tracing claim, which is governed by a statutory limitation period. The claimants' arguments based on historic treatment of accessories as express trustees are not good law in light of modern authority.

Court Disposition

Dishonest assistance claims are subject to a six-year limitation period; tracing claim is not time-barred; laches does not apply to the tracing claim.

Orders

  • Dishonest assistance claims against Mrs Pollard are subject to limitation and may be time-barred.
  • Tracing claim against Mrs Pollard is not time-barred.