Tutorial 10+

1. What is the difference between following and tracing? Explain this with reference to case
law.
2. Bruce Wayne is a trustee of huge amount of trust fund left to a beneficiary named Riddler.
Bruce commits a few breaches of trust while dealing with the trust fund.

(a) He puts in RM 25,000 of the trust money into an account which contains RM 15,000 of
his own money. He then proceeds to buy a bat mobile using the bank’s higher purchase
loan facility for RM 30,000. He also bought a new Armani suit for RM 5000 for his date
with his girlfriend Selena. He paid for their dinner, movie and drinks, worth RM 2000.
(b) He also withdraws RM20,000 from the trust fund to buy a new diamond studded Cat suit
for his girlfriend Selena.
(c) Bruce Wayne also convinced some innocent people to invest in his Renewal Project.
Miss Felicity Smoke who was inspired by Bruce’s passionate speech on giving back to the
poor, deposited RM 50,000 into his account in May. Then, a Mr Barry Allen, another
wealthy prominent society member also deposited RM 100,000 into his account in June.
Bruce withdrew RM90,000 from this account in August to use as down payment for a
new mansion.
(d) Bruce also had a current account (CA) which he used to write cheques when needed for
any of his businesses. He deposited RM 60,000 of his own money and monies he had
collected from another philanthropy scheme he was running into the account. This
scheme was to help educate the poor children of Gotham City. He had a donation of
RM20, 000 from a famous actor named Oliver Queen and RM 60,000 from his sister,
Thea Queen in the month of September. In October, a man named Cisco paid RM 5000
into this account. That very same month, Bruce withdrew RM 30, 000 for his daily
spendings that month (food, petrol etc.). Later in November, Bruce withdrew another
RM 20, 000 to buy a new Rolex watch as a treat for himself.

Analyse the situations above and determine if common law or equitable tracing is the
preferred method. Explain your answer by showing how the preferred tracing method can
help the Riddler and the other parties (Felicity Smoke, Barry Allen, Oliver and Thea Queen)
their money back.