Belmont Finance Corp Ltd v Williams Furniture Ltd (No 2)

Belmont Finance Corp was wholly owned by City Industrial Finance, Mr James the chairman of both. Belmont’s directors paid £500,000 under a scheme to help Maximum Co, owned and controlled by Mr Grosscurth, to buy shares in Belmont from City. This was a breach of fiduciary duty and breach of the prohibition on financial assistance. City received £489,000 ultimately. Belmont later claimed City was liable to account as a constructive trustee. ==Judgment==

The Court of Appeal held that City Industrial Finance was liable to account. Buckley LJ noted Barnes v Addy to mean that a stranger who receives some of the trust or assists with knowledge of facts in a dishonest design will be liable. Goff LJ concurred. Waller LJ concurred. ==See also==