Can a stranger to a trust be found liable for knowingly participating in a fraudulent breach of trust?

British Columbia, Canada


The following excerpt is from Long v Brar, 2021 BCSC 1799 (CanLII):

… Knowing assistance is a cause of action that can result in a stranger to a trust being found liable for knowingly participating in a fraudulent breach of trust. No issue is taken with the judge’s description of the components of a cause of action for knowing assistance, as drawn from the jurisprudence; in order to succeed, a plaintiff must plead and prove: a) there was a trust; b) the trustee perpetrated a dishonest and fraudulent breach of trust; and c) a third party participated in and had actual knowledge of the dishonest and fraudulent breach of trust. Gold v. Rosenberg, 1997 CanLII 333 (SCC), [1997] 3 S.C.R. 767 at para. 34.

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