Imposing Quistclose trusts—knowledge, not notice, as the golden rule (Goyal v Florence Care Ltd)


Publication Date:
30 Mar 2020


Description:

James Saunders provides dispute resolution analysis for Lexis PSL addressing the recent decision in Goyal v Florence Care Ltd and others [2020] EWHC 659 (Ch).

Goyal emphasises the importance of knowledge over notice in generating a Quistclose Trust. Quistclose trusts are likely to play a significant role between commercial parties and in and insolvency context in the wake of the current coronavirus crisis. Solicitors and commercial fund managers should be alert to the possible implications arising from the allocation and management of communications received, mindful that attributed knowledge may still suffice in the right circumstances. Goyal also provides an important reminder of the gateway function of an order for an account through which substantive remedies can be accessed.

Published In:
LexisPSL

Contributors:


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