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Accessory Liability Essay plan

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A concise, accurate and detailed essay plan describing the standard for liability of third party accessories to breaches of trust. Analysed and criticised using established and heavy-weight academics to support the argument. Achieved a first class in the final exam.

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  • 27 juni 2019
  • 3
  • 2018/2019
  • Essay
  • Onbekend
  • First class

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Door: maryamsiab • 3 jaar geleden

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‘The test for establishing accessory liability of third parties presents a nightmare for first instance
judges.’ Discuss.

1. Introduction

 Confusion has long surrounded the test for establishing liability of third parties in instances of
accessory liability
 The current law identifies dishonesty as the touchstone of liability (HL in Twinsectra v Yardley)
 Whether ‘dishonesty’ is subject to an objective or subjective standard is central to the debate on
this topic
 The Privy Council decision in Royal Brunei Airlines v Tan (1995) seems to provide some clarity, but
any apparent progress was unravelled by the House of Lords’ decision in Twinsectra
 This essay analyses the law before Tan, and the subsequent attempts at clarification presents a
nightmare for first instance judges


2. Before Tan

 Owing to Lord Selborne’s seminal speech in Barnes v Addy, the touchstone of accessory liability
before Tan was originally underpinned by ‘knowledge’
 However, unclear whether ‘actual knowledge’ or ‘constructive knowledge’ of breach was necessary
 At the heart of this ‘to-ing and fro-ing’ was a Baden 5-point scale; a tool for judges to use to
establish the required level of knowledge
 The Baden scale was widely criticised for lacking clarity and for not being comprehensive
o Norman - the boundaries between the categories were imprecise & the judicial demarcation
line between AK and CK could not always be drawn with certainty
o E.g. the language of points 1-3 suggest examination of D’s state of mind (actual knowledge),
whereas 4 & 5 examine the state of mind of a reasonable person (constructive knowledge)
 Consequently, Lord Nicholls’ in Tan drastically reformulated the touchstone of liability to instead
become dishonesty


3. Royal Brunei Airlines v Tan (PC)

 Lord Nicholls’ creation of a standard of fault in Tan, based on dishonesty rather than knowledge,
was widely commended by academics e.g. Harpum and Nolan.
 The Baden scale was to be forgotten (although some judges still find the scale helpful)
 The new test meant that people who dishonestly assisted because they knew of the breach or
deliberately ignored the breach (Nelsonian blindness) were liable & those who didn’t know
anything were not liable as they previously would have been
 Therefore, to ascertain dishonesty, the court should look to what the defendant actually knows
o Raises the threshold for liability & removes CK off the Baden scale
 Lord Nicholls claimed that the test was purely objective, although his formulation retains some
subjective elements in that honesty concerns conduct in the light of what a person actually knew at
the time
 However, honesty is not an optional scale according to individual moral standards
 He confirmed the test is objective based on the reasonable man
o Rejected the Ghosh test, which included both objective and subjective elements.
 Whilst Nicholls should be commended for introducing a seemingly straightforward test of
dishonesty, ending the AK/CK conundrum, it does remove knowledge from the equation all
together
 NB: Tan was a PC decision and therefore not authoritative

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