Federal Republic of Brazil and another v Durant International Corporation and another

Equity – Tracing. The Court of Appeal of Jersey had upheld a finding that the defendants were constructive trustees of sums that had been paid as bribes and which the claimants had sought to recover through the doctrine of tracing. The defendants contended that they were not liable for the sum that the court had found. The Privy Council held that it could not be said that there could never be backward tracing, or that the court could never trace the value of an asset whose proceeds were paid into an overdrawn account. On the facts of the case, the defendants were liable to account for the full sum found by the court.

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