Proprietary Remedies for Breach of Trust: Tracing, Constructive Trusts and Equitable Security
When trustees or fiduciaries misapply trust property, beneficiaries are not limited to personal claims against the wrongdoer. In many cases, equity allows beneficiaries to assert proprietary rights in the property itself or in assets that represent it. These claims, commonly described as proprietary claims following breach of trust, are among the most powerful remedies available in English private law. Proprietary claims enable beneficiaries to assert rights against property that has passed into the hands of others. They therefore play a crucial role where the original trustee has become insolvent or where the value of the misappropriated property has increased. Yet the law governing these claims is technically demanding. It requires careful analysis of the claimant’s proprietary interest, the processes of following and tracing, and the range of remedies that equity may grant. This post examines the structure of proprietary claims in English law and the remedies available when tru...
