Laws3111 Lecture10 2011
Week 10 – Restitution and Property: Remedies
- Restitution – return of payment or gains
- Generally a personal remedy
- money had and received
- quantum meruit (services)
- quantum valebat (goods)
- restitutionary damages
- account of profits
- Propriety remedies (equitable charges/liens/trusts) also available, but only really preferable in the event of bankruptcy.
- Can be value received for personal if no defence, or value surviving/afterwards for proprietary/change of position
- Note: Property Rights post bankruptcy protected from creditors under bankruptcy Act (s 116(2)(a)) and PPSA (s 8(1)(c))
Proprietary Remedies
- Normally equitable – liens and constructive trusts
- Can be hybrid – rescission/rectification
- Rescission: Contract void, money/assets paid must be returned
- Rectification: can also lead to proprietary consequences, dependant on nature of rectification
Trusts
- arises where property is transferred with no intent for the transferee to benefit
- Failure of an express trust (anti-beneficial transfer – unjust to let recipient retain property in absence of trust)
- “apparent gifts” – when plaintiff did not intend to benefit the defendant, equity will require the gift to be returned
- Wrong-doing with the intention of benefit (eg. Theft, fraud, etc.)
- MAY arise outside of contract/intentional torts – but the law is unclear (Ilich v R) – but Chase Manhattan v Israel-British Bank suggests that they MIGHT.
Liens
- Less intrusive than a trust, but there must be some connection between the debt and the asset – eg. Work done on that particular asset
- Calverly v Green – both contributed to house repayments, held to both own the house in trust, proportional to their respective contributions (2/3rd to 1/3rd) with a lien over the wife’s share for his additional contributions.
Tracing
- Identifying the location of value where the value of one asset (eg. Stolen money) was used to acquire another asset (eg. Purchased a painting). Must be an identifiable asset, and merely tracing does NOT necessarily allow the asset to be claimed.
- Can also follow money GIFTED to a third party, but not exchanged for value (Black & Black v Freedman)
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