Robert Megarry and Equity – Four Cases considered.
In Re Montagu?s Settlement Trusts (1987) Lord Megarry established that: ?Liability for knowing receipt requires proof that the defendant had knowledge of the breach of trust and received trust property with that knowledge. The knowledge must exist at the time of receipt.
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It must be recognised that, at the time, more emphasis was put on whether there was any fault and whether failing to make enquiries or notice relevant circumstances may indicate fault, but this notion was improved by Lord Megarry in Re Montagu?s Settlement Trusts (1987).
Lord Megarry stated that the recipient?s conscience must be affected and therefore constructive knowledge would not be enough, there must be some ?want of probity?[7]. …
rather than withheld at the interlocutory stage unless the court feels a ?high degree of assurance? that the plaintiff would be able to establish his right at a trial.
Lord Megarry re-assembled this in two ways: 1. Semantic arguments over whether the injunction as formulated can properly be classified as mandatory or prohibitory are uninviting.
The question of substance is whether the granting of the injunction would carry that higher risk of injustice which is normally associated with the grant of a mandatory injunction.
Cases in which there can be no dispute about the use of the term ?mandatory? to describe the injunction, the same question of substance will determine whether the case is ?normal? and therefore within the guideline of ?exceptional? and therefore requiring special treatment.
There is no great reason to refuse to grant a mandatory injunction in such cases, so long as they at least included the details of the damage to the plaintiff and th
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