The
House of Lords has also recently released a decision dealing with
the Scottish law of trusts in relation to claims in bankruptcy and
the "unjust enrichment" that this might cause, see Burnett's Trustee
(Respondent) v. Grainger and another (Appellants) http://www.publications.parliament.uk
/pa/ld200304/ldjudgmt/jd040304/burnet-1.htm.
The
facts were as follows: A, the owner, sells her flat to B and C.
B and C pay the price to A and, in return, she delivers the relevant
title documents to them. B and C take possession of the flat, but
do not record their title in the register. A goes bankrupt and,
on the basis that the flat remains part of her estate at the date
of the bankruptcy, the trustee, who knows of the disposition to
B and C, records a notice of title to the flat in the register.
B and C then record their title. The House of Lords held that the
trustee's title is to be preferred and that he can evict B and C
from the flat without repaying the price since time of registry
is the criteria of true ownership.
Should
there be some sort of remedy for B and C?
