ABSTRACT

The general rule is that third parties or persons who have not been appointed trustees (such as agents of trustees, for example, accountants and solicitors) are not constructive trustees if they act in breach of their duties. They may be personally liable in damages for breach of contract or tort and are answerable to their principals, the trustees who appointed them. Provided that the agent acts within the course of his authority and does not receive the trust property for his own benefit and does not have knowledge that he is acting in a manner inconsistent with the terms of the trust, he does not become a constructive trustee. In other words, if the agents of trustees do not become trustees de son tort, that is, do not adopt the characteristics of trustees, such as intermeddling with the trust property, they are not constructive trustees, although they may be personally liable if they act negligently.