Independent Trustee Services Ltd v GP Noble Trustees Ltd & Ors [2012] EWCA Civ 195 (28 February 2012)

Independent Trustee Services Ltd v GP Noble Trustees Ltd & Ors [2012] EWCA Civ 195 (28 February 2012)

Mrs Morris lost the protection of the bona fide purchaser for value without notice defence when the ancillary relief order was set aside for material non-disclosure. ITS, as beneficiary of the misappropriated pension funds, was entitled to trace and recover the £1.481m from Mrs Morris, subject to her right to claim ancillary relief afresh, but could not be defeated by the prior order. The proprietary claim of ITS was not extinguished by the initial transfer to Mrs Morris under the rescinded order.

Citation
[2012] EWCA Civ 195
Parties
Claimant/appellant: Independent Trustee Services Limited; Defendants: GP Noble Trustees Limited & Others; Respondent: Susan Morris
Jurisdiction
England and Wales
Judgment Date
28 February 2012
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)
Outcome
Appeal allowed. ITS entitled to trace and recover the £1.481m from Mrs Morris, subject to her renewed ancillary relief claim.
Legal Topics
Tracing of Trust Assets, Ancillary Relief in Divorce, Bona Fide Purchaser Defence, Setting Aside Consent Orders for Non Disclosure, Interaction of Matrimonial and Insolvency Law
Trusts and Equity Family Law Fraud Insolvency Tracing of Trust Assets Ancillary Relief in Divorce Bona Fide Purchaser Defence Setting Aside Consent Orders for Non Disclosure +1 more

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Parties

Independent Trustee Services Limited

Claimant/appellant

GP Noble Trustees Limited & Others

Defendants

Susan Morris

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)

Legal Issues

  1. 1 Whether Mrs Morris could retain £1.481m received from Mr Morris, which was traceable to pension fund assets misappropriated by Mr Morris, after the ancillary relief order under which she received it was set aside for non-disclosure.
  2. 2 Whether the bona fide purchaser for value without notice defence continued to protect Mrs Morris after rescission of the order.
  3. 3 Whether ITS could enforce a proprietary claim to the £1.481m directly against Mrs Morris.

Ratio Decidendi

Mrs Morris lost the protection of the bona fide purchaser for value without notice defence when the ancillary relief order was set aside for material non-disclosure. ITS, as beneficiary of the misappropriated pension funds, was entitled to trace and recover the £1.481m from Mrs Morris, subject to her right to claim ancillary relief afresh, but could not be defeated by the prior order. The proprietary claim of ITS was not extinguished by the initial transfer to Mrs Morris under the rescinded order.

Court Disposition

Appeal allowed. ITS entitled to trace and recover the £1.481m from Mrs Morris, subject to her renewed ancillary relief claim.

Orders

  • Order of the High Court (Peter Smith J) dismissing ITS's claim to the £1.481m set aside.
  • Declaration that ITS is entitled to trace and recover the £1.481m from Mrs Morris, subject to any fresh ancillary relief order.