Can a stranger to the trust be held personally liable to the beneficiaries?

British Columbia, Canada


The following excerpt is from Alers-Hankey v. Solomon et al, 2004 BCSC 1368 (CanLII):

In Air Canada v. M & L Travel, 1993 CanLII 33 (SCC), [1993] 3 S.C.R. 787 the court, at page 810 stated as follows: In addition to a trustee de son tort, there were traditionally therefore two ways in which a stranger to the trust could be held personally liable to the beneficiaries as a participant in a breach of trust: as one in receipt and chargeable with trust property and as one who knowingly assisted in a dishonest and fraudulent design on the part of the trustees. The former category of constructive trusteeship has been termed "knowing receipt" or "knowing receipt and dealing", while the latter category has been termed "knowing assistance".

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