Property disposed of in breach of trust

In Chan Ming Hung v Sum Choi Wan Chau ([2012] HKEC 759) C appointed S and her husband as trustees of his property. He was in the United Kingdom and they were family members. In breach of trust, they sold the property and invested at least part of the proceeds in a new property which was registered in their name.The property was then transferred into the names of S and her son (a volunteer who may well have been aware of the circumstances giving rise to C’s claim).  The court made a declaration that the proceeds of sale and the title to the property unlawfully purchased using them were held on trust for C.

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