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United Kingdom Leading Case tracing in equityresulting trusts

Barlow Clowes International Ltd v Vaughan

[1992] 4 All ER 22
JurisdictionUnited Kingdom
CourtEngland and Wales Court of Appeal
Year1992
StatusBinding authority

Summary

In a fraudulently depleted investment fund, courts may distribute remaining assets pari passu rather than applying Clayton's Case (FIFO) where that rule would produce injustice.

Key Principle

Where an investment fund is depleted through fraud, the court may distribute remaining funds on a pari passu basis rather than applying the rule in Clayton's Case (first in, first out) where that rule would produce unjust results.

Area of Law

trusts

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