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Legal Terms - Accessory Liability in Breach of Trust
Accessory liability in breach of trust refers to the legal responsibility of a person who assists or encourages someone else to commit a breach of trust.
If an individual who is aware of and intentionally aids a trustee in violating their fiduciary duty, they would be held accountable as an accessory, as established in the case of Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 (PC). Typically, he will not have received any funds that were entrusted to him. However, due to his dishonest involvement in the breach, he will be personally responsible for compensating the trust for any damages resulting from his actions. An individual of this nature is occasionally called a "constructive trustee," however this phrase is problematic and should be avoided. The assessment of "dishonesty" is conducted in an impartial and factual manner, as demonstrated in the case of Barlow Clowes International v Eurotrust International [2005] UKPC 37, [2006] 1 WLR 1476.
Accessory liability in breach of trust refers to the legal responsibility of a person who assists or encourages someone else to commit a breach of trust.
If an individual who is aware of and intentionally aids a trustee in violating their fiduciary duty, they would be held accountable as an accessory, as established in the case of Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 (PC). Typically, he will not have received any funds that were entrusted to him. However, due to his dishonest involvement in the breach, he will be personally responsible for compensating the trust for any damages resulting from his actions. An individual of this nature is occasionally called a "constructive trustee," however this phrase is problematic and should be avoided. The assessment of "dishonesty" is conducted in an impartial and factual manner, as demonstrated in the case of Barlow Clowes International v Eurotrust International [2005] UKPC 37, [2006] 1 WLR 1476.
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