Inter Pleader proceedings in the Isle of Man and their relationship with Constructive Trustee Arguments.
The Manx Courts have recently had the opportunity of reviewing, with the benefit of relevant UK precedent, the approach to be adopted to an inter pleader application. With the same proceedings, the Court also considered what relief may be afforded to a financial institution who may hold funds on a form of constructive trust.
Order 10A of the Rules of the Court of the Isle of Man provides “1(1) Where a person is under a liability in respect of a debt or in respect of any money, goods or chattels and he is, or expects to be (our emphasis added), sued for or in respect of that debt or money or those goods or chattels by two or more persons making adverse claims thereto, the person under liability may apply to the Court for relief by way of inter pleader.”
Deemster Cain QC cited and followed the UK decision of Watson v. Park Royal Caterers (1961) 1WLR 727, for the purposes of defining the extent of expectation of “a rival claim”, and the extent of an expectation to be sued, sufficient for these purposes.
The Court adopted the approach of the English Court in Watson v. Park Royal Caterers and also cited, with approval, the summary of the position, under English law, in the English pre-Court Practice 1999, paragraph 17/1/7 as the tests to be applied within an inter pleader application.
Read the full article here: Inter Pleader proceedings in the Isle of Man