Whither Quistclose trusts? A non-linear development of the doctrine

Abstract

The term “Quistclose trust” requires little introduction. Prickly Bay Waterside Ltd v British American Insurance Co Ltd [2022] UKPC 8 appears to be another Quistclose trust case adding to the wealth of authority on this subject—but is it? Apart from distilling the previous authorities, the Judicial Committee of the Privy Council seems to have set down other signposts to guide the courts. This article discusses the development of the Quistclose doctrine brought by this Privy Council decision. In particular, it will explore the purported refinement of the test of Quistclose trust, the relevant intention to be proven under the test, the issues in relation to fiduciary duty in this context, and also the way forward.