A new tort of inducing a breach of trust?

Abstract

This article considers whether a new tort of inducing a breach of trust would be a welcome development in English law. It is envisaged that any such new tort would inevitably have similar characteristics to the existing tort of inducing a breach of contract, namely, that the defendant: (1) acted with the requisite knowledge of the existence of a trust and (2) deliberately intended to interfere with the duties of the trustee. Actual knowledge would not be essential as it would be enough that the defendant turned a blind eye to the facts. The new tort would allow a claimant to pursue a third party where his/her wrongdoing consisted solely of threats or persuasion falling short of actual participation in, or the facilitation of, a breach of trust. Moreover, the tort would impose liability on the third party without proof of dishonesty provided that s/he had knowledge of the trust and the requisite intention to cause a breach. Apart from the remedy of damages, the claimant would have the advantage of seeking an injunction to restrain any threatened or future inducement. Aggravated damages could also be recovered in appropriate circumstances.