What is the liability of a stranger to a trust?
Alberta, Canada
The following excerpt is from Durish v. White Resource Management Ltd., 1998 ABQB 801 (CanLII):
222. Barnes v. Addy, supra, sets out the two basic situations that would give rise to liability of a stranger to a trust. A stranger who acts as the agent of a trustee in a transaction legally within his power, but which leads to a breach of trust, is not to be held responsible as a constructive trustee unless some of the property passes into his hands, or unless he is cognizant of a dishonest design on the part of the trustee.
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