[2016] UKSC 47
UKSC 2014/0106
Bailey and another (Respondents) v Angove's PTY Limited (Appellant)
On appeal from the Court of Appeal (Civil Division) (England and Wales)
The appellant terminated its Agency and Distribution agreement with D&D Wines International Limited (D&D). There was a dispute as to whether, after the notice of termination, D&D's liquidators still had authority to collect money owed to the appellant and whether any money it collected would be held on trust for the appellant. The issues in this case were 1) whether the Court of Appeal was correct to hold that the general rule that the authority of an agent can be terminated even if that is a breach of contract as between agent and principal, yielded to what the parties agreed should be their respective rights and obligations under the agency agreement, and 2) whether the Court of Appeal was correct to hold that a constructive trust did not arise when D&D, as agent, received money from third parties for onwards transmission to its principal, Angove's PTY Limited (Angove), in circumstances where D&D was insolvent.
The Supreme Court unanimously allows Angove’s appeal on the first question. D&D’s agency was revoked by Angove’s termination notice, but the moneys were not held on constructive trust for Angove’s.
