Re Young; Allen (trustee in bankruptcy of Young) v Young

Bankruptcy – Trustee in bankruptcy. The Bankruptcy High Court held that an agreement, under which the respondent bankrupt had purportedly agreed to deliver up her share of funds from her deceased husband's life insurance policy in consideration of the respondent trustee in bankruptcy paying her a sum from those funds, was contractually binding. However, the court, in dismissing the trustee's application for relief, held that the rule in Re Condon, ex p James[1874-80] All ER Rep 38 applied, such that the trustee should, in the interests of fairness, not insist on his strict legal rights where, to do so, would result in a windfall to the estate of a wholly unjustified nature.

Category: