Equity and Trusts Law

What is Equity and how did it develop?

• in the late 19th centurary there were 2 bodies of law. 1. court dealt with common law and court #2 which is the Courts of Chancery dealt with equity.

• To get justice, you need a writ. you’d have to chase king around for it (who didn’t wanna help) so he appointed a chancer who would be very discrete with his judgements

• The Judicature Acts 1873 (section 25) and 1875 (NI 1978 - s86(1) restructured the court system. The court of Chancery and the Kings bench along with other courts were merged into one Supreme Court Judicature, which we now know divided into the High Court and the Court of Appeal. there was a “fusion” in the law of equity

What is a Trust?

A trust is a legal relationship where: Person A lehally holds property for the benefit of Person B.

‘maxims of equity’?

modern role: shape equitable reasoning. NOT BINDING!! more of a guide rail judges may use in their decisions

eg:

“he who comes to equity must come with clean hands”

“equity will not suffer a wrong without a remedy” (injunctions for ex)

“equality is equity”

Define a trustee and a beneficiary.

Trustee= legal owner and title of powers and management. “for now legal owner but not forever”

1. hold legal title

2. administer property per the trust intrument or equity principle

3. bound by duties (loyalty, no profit/ personal benefit, avoiding conflict)

Beneficiary = Equitable ownership + benefical enjoyement

1. enjoy

2. benefit

re scott 1948 - trustess obligations are to manage property for beneficiraries not for themselves

• trustee has stricter rules in the legal relationship

What do we mean by the ‘fusion’ of law and equity?

Ashburner famously set the orthodox view about the effect of the Judicature Acts thus: “… the two streams of jurisdiction, though they run in the same channel, run side by side and do not mingle their waters

united scientific holding vs burnley 1978 lord diplock said - declared waters have mingled and did fuse (opopsition of ashburner)

Target Holdings Ltd v Redferns [1996]= - brought equity closer to the common law principle of causation and loss. adminsitravily fused and case by case its becoming substancly fused.