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For tracing enthusiasts, and those with an interest in interest, Banton v CIBC Trust Corp, a case in the Ontario Sup Ct of Justice, is now reported at (1999) 182 DLR (4th) 486. At 505 Cullity J holds that if the beneficial owners of misappropriated trust assets can trace them into an interest-bearing account, the interest accumulated in the account should be seen as the fruits of the traceable proceeds of the trust assets, to a rateable proportion of which the beneficiaries can accordingly lay claim. At 506, however, the judge then muddies the waters by suggesting that the justification for making an interest award may instead be found in the general jurisdiction of a court of equity to award interest, and concludes that the claimants in the case should either recover a proportionate part of the interest actually earned by 'their' money or if this is too hard to calculate, simple interest at 5%.

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Dr Charles Mitchell
Lecturer in Law
School of Law
King's College London
Strand
LONDON WC2R 2LS

tel: 020 7848 2290
fax: 020 7848 2465
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