Henry v. Hammond [1913]

Key Notes

• Channell J stated that if a person is "bound to keep [money] separate, either in a bank or elsewhere," this indicates a fiduciary duty, meaning the person is acting as a trustee.

• If the person is not required to keep the money separate, they are not a trustee of the money but instead a debtor, with a simple obligation to repay the amount.

• The case highlights the distinction between a trustee, who holds property for someone else, and a debtor, who merely owes a sum of money.

• The decision clarifies that the requirement to keep property separate is crucial in establishing a trust relationship.