Court of Appeal distinguishes Target

In a recent decision the Court of Appeal distinguished Target and AIB on the applicable remedy arising out of a breach of trust in a commercial transaction.

The court held that where the trustees’ professional obligation in a commercial transaction was only to safeguard the trust fund until a condition was met, and they had no positive role in satisfying that condition, the equitable compensation payable where the funds had been paid out without the condition being satisfied was the full amount of the fund. This was so even where satisfaction of the condition would not have prevented the claimant beneficiaries from losing all of their money.