Secret Trust in UK Law

Leading Cases
  • De Bruyne v De Bruyne and Others
    • Court of Appeal (Civil Division)
    • 13 May 2010

    It is not necessary in such cases to show that the property was acquired by actual fraud (although the principle would apply equally in such cases). This is sufficient in itself to create the fiduciary obligation and to require the imposition of a constructive trust.

  • FHR European Ventures LLP v Mankarious
    • Supreme Court
    • 16 Jul 2014

    Wider policy considerations also support the respondents' case that bribes and secret commissions received by an agent should be treated as the property of his principal, rather than merely giving rise to a claim for equitable compensation. Secret commissions are also objectionable as they inevitably tend to undermine trust in the commercial world.

  • Novoship (UK) Ltd and Others v Vladimir Mikhaylyuk and Others
    • Queen's Bench Division (Commercial Court)
    • 14 Dic 2012

    The essential character of a bribe is, thus, that it is a secret payment or inducement that gives rise to a realistic prospect of a conflict between the agent's personal interest and that of his principal. The bribe may have been offered by the payer or sought by the agent. There is no need to establish dishonesty or corrupt motives. The motive for the payment or inducement (be it a gift, payment for services or otherwise) is irrelevant.

    The payments (or other benefits) do not have to be made directly to the fiduciary. Bribes may be paid to third parties close to the agent, such as family members or discretionary trusts, or simply to those whom the agent wishes to benefit. The test is whether the payment (or other benefit) puts the fiduciary in a real (as opposed to a fanciful) position of potential conflict between interest and duty.

  • Malik and Mahmud v Bank of Credit and Commerce International SA
    • Court of Appeal (Civil Division)
    • 09 Mar 1995

    But it is inherent in conduct of the kind which we are required to assume in this case that, if it is to be successful, it is secret and hidden from most of the employees as well as the rest of the world. Once the employee has left his employment the subsequent revelation of the fraud can have no effect on the trust and confidence for, by definition, it has ceased anyway.

  • Prince Arthur Ikpechukwu Eze v Conway and Another
    • Court of Appeal (Civil Division)
    • 06 Feb 2019

    It is clear from the authorities that in order for the law of bribery and secret commissions to be engaged there must be a relationship of trust and confidence between the recipient of the benefit or the promise of a benefit and his principal (used in the loosest of senses) which puts the recipient in a real position of potential conflict between his interest and his duty. Not all agents will be in such a position and the relationship may arise where there is no agency at all.

  • Attorney General's Reference (No. 1 of 1985)
    • Court of Appeal (Criminal Division)
    • 07 Mar 1986

    The second matter is this. There is a clear and important difference between on the one hand a person misappropriating specific property with which he has been entrusted, and on the other hand a person in a fiduciary position who uses that position to make a secret profit for which he will be held accountable. Whether the former is within section 5, we do not have to decide. As to the latter we are firmly of the view that he is not, because he is not a trustee.

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Legislation
  • Counter-Terrorism and Security Act 2015
    • UK Non-devolved
    • 1 de Enero de 2015
    ...... return is in accordance with a permit to return issued by the Secretary of State before the individual began the return, or. . . (b) the return ... . . . An NHS Trust established under section 25 of the National Health Service Act 2006 or ......
  • Investigatory Powers Act 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ...... as an EU mutual assistance instrument by regulations made by the Secretary of State; . “international mutual assistance agreement” means an ... Commissioner makes a composition or arrangement with, or grants a trust deed for, the Commissioner’s creditors, . (b) (b) any of the following ......
  • Presentation of Benefices Act 1713
    • UK Non-devolved
    • 1 de Enero de 1713
    ...... or Person Professing the Popish Religion, and every Mortgagee, Trustee or Person any ways intrusted, directly or indirectly, mediately or ...III. And for the better Discovery of all secrets Trusts, and fraudulent Conveyances made by Papists or Persons making ......
  • Bankrupts Act 1731
    • UK Non-devolved
    • 1 de Enero de 1731
    ......, since the Expiration of the said Statute, bought and taken upon Trust and Credit divers great Quantities of Goods, Wares and Merchandizes, and ... from their usual Places of Abode, with their Effects, into secret Places, in order to oblige their Creditors to accept of such Composition ......
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Books & Journal Articles
  • Discolouring Democracy? Policing, Sensitive Evidence, and Contentious Deaths in the United Kingdom
    • Núm. 40-4, Noviembre 2013
    • Journal of Law and Society
    This article examines recent United Kingdom government proposals for secret inquests, which, it is argued, are part of a general push for secrecy discernible across common law jurisdictions, and wh...
    ...... article examines recent United Kingdom government proposals for secret inquests, which, it is argued, are part of a general push for secrecy ... intelligence-led policing, all of which have implications for police trust, accountability, and reputation management. INTRODUCTION On Monday 23 ......
  • Together in the middle: Back-channel negotiation in the Irish peace process
    • Núm. 48-6, Noviembre 2011
    • Journal of Peace Research
    This article examines the development of cooperative relationships in back-channel communication and their impact on intraparty negotiation. It draws on extensive newly available evidence on back-c...
    ......The article analyses the operation of a secret back channel that linked the Irish Republican Army to the British ... increased predictability and laid a foundation of extremely limited trust by providing information and increasing mutual understanding. Strong ......
  • Reasons for the poor provision of information by the government: public opinion
    • Núm. 26-2, Julio 2016
    • Records Management Journal
    • 185-205
    Purpose: The purpose of this paper is to present, on the one hand, the findings of a survey conducted during 2012 in Iceland and, on the other hand, the results of interviews held in 2015 concernin...
    ...... open public information and other research that had examined trust towardspublic authorities and the inuence of freedom of information ... sixinterviewees in the later study felt that information was kept secret for a variety of reasons. Most feltthat information was kept under wraps ......
  • Equity And The Law Reform Committee
    • Núm. 24-1, Enero 1961
    • The Modern Law Review
    ...... The revival of the use under the name of the trust did nothing to diminish this interference, and the ... of the equity of redemption; the enforcement of secret trusts ; the restraint upon anticipation ; and the ......
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Law Firm Commentaries
  • Contentious Trusts And Estates
    • Mondaq United Kingdom
    ......He is currently acting for a client pursuing a secret trust claim over assets alleged to be hidden in Swiss bank accounts and in the British Virgin Islands. Elizabeth Neale, Partner. Liz joined ......
  • Supreme Court Holds That Bribes Received By An Agent Are Held On Trust For The Principal
    • Mondaq UK
    ......Cedar Capital Partners LLC [2014] UKSC 45 has clarified that a bribe or a secret commission received by an agent is held by the agent on trust for his principal, creating a proprietary remedy against the bribe or secret commission ......
  • Can You Be Dismissed For Secretly Recording Your Boss?: UK Employment Tribunal Weighs In
    • Mondaq UK
    ...... At the EAT, her employer argued that the covert recording amounted to a breach of the duty of trust and confidence that is implied in every contract of employment. The covert recording was designed to obtain an advantage for Ms Stockman and place ......
  • Beyond The Brown Envelope
    • Mondaq UK
    ...... been a principle of English law that if an agent takes a bribe or a secret commission, he is liable to account to his principal for the amount ... or secret commission received by an agent is held on constructive trust for his principal, and as such the principal has a proprietary claim to ......
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