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Trust and Trustee – Resulting trust. The appellant solicitors' firm (the firm) accepted monies into its client account from the respondents. The bulk of the sum was paid out in reduction of short-term borrowing of money incurred by a client of the firm, AFL. AFL entered administration. The respondents successfully commenced proceedings, seeking to recover their losses from the firm in the main basis that the firm had paid the money from its client account, or for the benefit of AFL. The Court of Appeal held that the judge at first instance had erred and that the firm's appeal would succeed.
Trust and Trustee – Resulting trust. The appellant solicitors' firm (the firm) accepted monies into its client account from the respondents. The bulk of the sum was paid out in reduction of short-term borrowing of money incurred by a client of the firm, AFL. AFL entered administration. The respondents successfully commenced proceedings, seeking to recover their losses from the firm in the main basis that the firm had paid the money from its client account, or for the benefit of AFL. The Court of Appeal held that the judge at first instance had erred and that the firm's appeal would succeed.
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