“There has been a good deal of recent controversy as to the role to be played by constructive trusts in cases of bare (non-contractual) fraud, and whether vesting orders can properly be made vesting in victims of the fraud the right to recover the defrauded assets. Much of this debate has stemmed from a flurry of cases arising from email fraud in Hong Kong. Indeed, no less than 30 cases have been decided on the matter in Hong Kong in the last two to three years, and there is no reason to think that this part of the world is alone in being increasingly challenged to address the legal consequences of fraud. Since the cases turn upon fundamental principles relating to constructive trusts, as well as statutory provisions as to vesting orders that are substantially the same in England and Wales, and several other common law jurisdictions, the issues raised are of considerable general interest to scholars and practitioners across the common law world …”
€ (Westlaw)
Andrew Lynn, ‘The Westdeutsche “fruits of fraud” constructive trust as an effective remedy in cases of bare fraud’ (2022) 138 Law Quarterly Review (July) 388-406.
First posted 2022-06-03 16:00:30
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