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A-G of Hong Kong v Reid [1994] 1 AC 324

Country:
United Kingdom
  • Defendant had abused his public office to receive huge amounts of bribes to prevent criminal prosecutions.

  • The AG brought an action for the crown to reclaim the bribe money.

  • PC allowed the claim, holding that Lister had been wrongly decided. 

Lord Templeman

  • As soon as a bribe is paid the fiduciary becomes in equity the debtor of his principal for the amount of the bribe which should be transferred to the principal.

  • Because equity views that as done which ought to be done, the bribe becomes the subject of a constructive trust in favour of the principal as soon as it is received. 

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