Byers v Saudi National Bank - Knowing Receipt Claim
Summary
The UK Supreme Court in Byers v Saudi National Bank (UKSC/2022/0048) has resolved a significant question of trust law regarding knowing receipt claims. The Court confirmed that a claimant seeking to establish liability for knowing receipt of trust property must prove a continuing equitable interest in that property at the time of the defendant's receipt. The appeal by the liquidators of Saad Investments Company Ltd, which contended no such continuing interest was required, was dismissed, affirming the Court of Appeal's decision.
“Whether a claim in knowing receipt requires a claimant to prove a continuing equitable interest in the property transferred to the defendant in breach of trust, in addition to knowledge on the part of the defendant so as to render his receipt unconscionable.”
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What changed
The Supreme Court considered whether the knowing receipt doctrine in English trust law requires a claimant to demonstrate a continuing equitable interest in property transferred to a defendant in breach of trust, beyond proving the defendant's knowledge rendering receipt unconscionable. The Court affirmed the established position that such a continuing interest must be shown.\n\nFinancial institutions and legal practitioners should note that this ruling maintains the existing evidentiary requirements for knowing receipt claims. Entities involved in trust structures or handling potentially misapplied trust assets should be aware that mere knowledge of breach of trust, without an identifiable continuing equitable interest in the claimant, will not sustain such a claim.
Archived snapshot
Apr 24, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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BUSINESS, PROPERTY, WILLS, AND TRUSTS
Byers and others (Appellants) v Saudi National Bank (Respondent)
Judgment given
Contents
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Case summary
Case ID
UKSC/2022/0048
Parties
Appellant(s)
Mark Byers
Hugh Dickinson (as Joint Official Liquidators of Saad Investments Company Ltd)
Saad Investments Company (in liquidation)
Respondent(s)
Saudi National Bank
Issue
Whether a claim in knowing receipt requires a claimant to prove a continuing equitable interest in the property transferred to the defendant in breach of trust, in addition to knowledge on the part of the defendant so as to render his receipt unconscionable.
Facts
The appellants, SICL and its joint liquidators, issued proceedings alleging knowing receipt of trust property against SNB, the respondent, contending that a transfer of shares to Samba, a Saudi Arabian bank whose assets and liabilities were subsequently transferred to SNB, had been made in breach of trust and that Samba had known at the time of the transfer of the appellants' interest in the disputed securities and had incurred liability as a knowing recipient.
The judge found, inter alia, that the liability of a knowing recipient rested on his knowledge that the property he received was trust property and where a recipient was, from the outset, entitled to treat the property as his own, no liability arose. A claim in knowing receipt would, therefore, fail if, on receipt, the beneficiary's equitable interest was extinguished under the law applicable to the transfer and that since, as a matter of Saudi Arabian law, SICL had no continuing equitable interest in the shares after the transfer, the claim in knowing receipt failed.
The appellants' appeal to the Court of Appeal, contending that they were not required to demonstrate a continuing equitable interest in the shares to succeed in their claim, was dismissed. The appellants now appeal to the Supreme Court.
Date of issue
24 February 2022
Judgment appealed
[2022] EWCA Civ 43 HTML
Judgment details
Judgment date
20 December 2023
Neutral citation
[2023] UKSC 51
Judgment links
PDF | 590.03 KB
20 December 2023 PDF Press summary (PDF)
PDF | 165.15 KB
20 December 2023 Judgment on The National Archives (HTML version) HTML
Press summary on The National Archives (HTML Version) HTML
Judgment on BAILII (HTML version) HTML
Judgment summary
20 December 2023
Appeal
Justices
Hearing dates
Full hearing
Start date
12 July 2023
End date
13 July 2023
Watch hearings
12 July 2023 - Morning session
12 July 2023 - Afternoon session
13 July 2023 - Morning session
13 July 2023 - Afternoon session
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Change log
Last updated 16 April 2024
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