Secondary Liability of Third Parties in Equity

A set of vocabulary flashcards covering key concepts related to secondary liability of third parties in equity, including the doctrines of Dishonest Assistance and Knowing Receipt.

Dishonest Assistance

A liability where a third party assists in a breach of trust with knowledge of the dishonesty involved.

Knowing Receipt

A liability where a third party receives trust property in breach of fiduciary duty for their own benefit.

Accessory Liability

A form of liability imposed on third parties who are implicated in a breach of trust without being trustees themselves.

Constructive Trustee

A phrase describing someone who is liable to account for trust property received, though no trust relationship exists.

Unconscionable Receipt

A form of liability for a third party who receives trust property, which is unjust to retain.

Baden Knowledge Scales

A framework identifying categories of knowledge related to dishonesty in accessory liability cases.

Royal Brunei Airlines v Tan

A pivotal case that established the objective test for dishonesty in accessory liability.

Twinsectra Ltd v Yardley

A case that introduced a subjective awareness requirement to the dishonesty standard.

Blind-Eye Knowledge

Conscious decision to avoid confirming a suspicion about a fact, applicable in dishonest assistance.

Equitable Remedy of Account

A way to measure liability for unjust enrichment by restoring the value gained from wrongful receipt.

Requisite Knowledge

Knowledge that the assets received are traceable to a breach of fiduciary duty, making it unconscionable to retain them.

Causal Link

The necessary connection between the assets received and the breach of duty in recipient liability.

Knowledge Requirement

The standard of knowledge necessary to establish liability under the knowing receipt doctrine.

Unjust Enrichment

A legal principle where one party is unjustly enriched at the expense of another, leading to liability.