PLEASE USE TRUST LAW CASES TO ANSWER DO NOT PICK IF YOU CANT DO IT. USE CASE LAW AND IRAC STRUCUTRE. ISSUE RULE APPLICATION AND CONCLUSION. USE CASE LAW NOT JUST EXPLATAION USE ESSENTIAL READING TO HELP

Essential Reading:

G. Watt, Trusts & Equity, chp 14 OR G. Virgo, The Principles of Equity & Trusts,chp 19

AND Foskett v McKeown[1997] 3 All ER 392

J. Stevens, 'Vindicating the proprietary nature of tracing' [2001] Conv94 [a short case comment/analysis of Foskett v McKeown]

Roger advertises himself as an expert investment manager. He receives 10,000 from Laura and 10,000 from Mahmood to invest as trustee on their behalf. He puts the money from Laura into a current account that he uses regularly as a temporary holding account for money received from investors, and then soon afterwards he puts Mahmood's money in the same account.

He then withdraws 10,000 from the account, which he uses up completely on a holiday for himself and his family.

Then he withdraws 5,000, buys a motorbike and gives it to his son, Matti.

Roger also receives 10,000 from another investor, Nalante, which he puts in a different current account along with his own money. The balance on this account is now 15,000.

He withdraws 10,000, all of which he loses gambling in a casino.

Later, Roger deposits 5,000 of his own money in the account, bringing the balance to 10,000.

Roger also receives 1,000 from Oban, which he uses to buy 100 lottery tickets for 10 each. One of the tickets wins 10,000.

Advise Laura, Mahmood, Nalante, and Oban with respect to their proprietary claims against Roger.

SUGGESTED APPROACH:

(a) Work through events chronologically (b) Run a "tab" to keep track of how much money there is and who it belongs to.

Questions to consider:

• Whose money is used for each payment?
• Whose money is left in account?
• What should beneficiary claim at each point?
• What can beneficiary do if claim in equity fails?