Byers and others (Appellants) v Saudi National Bank (Respondent)

This appeal concerns the equitable claim in knowing receipt, which typically arises when a trustee transfers trust property to the defendant in breach of trust, and the defendant learns about the breach before disposing of the property. The single issue is whether a claimant must retain an equitable proprietary interest in the property at the time it reaches the defendant for a claim in knowing receipt to succeed. The court held that a claim in knowing receipt cannot succeed if the claimant’s proprietary equitable interest in the property has been extinguished or overridden by the time it reaches the defendant. This conclusion is based on the principle that once a claimant’s equitable interest is extinguished or overridden, there is no basis for imposing a personal liability on the defendant to return or account for the property. The court dismissed the appeal, affirming that the claimant’s proprietary interest must exist at the time of receipt for a claim in knowing receipt to be viable.