Brown v Inland Revenue, 1964 SC HL 180
Citation:Brown v Inland Revenue, 1964 SC HL 180
Rule of thumb:If an agent has their principal’s money, and they put this into an interest bearing account, are they entitled to keep the interest on the money? No, this interest must be given to the principal.
Background facts:
Judgment:
Agents must put their principal’s money in a separate account from their own and they must return all the interest on it to their principal.
Ratio-decidendi:
‘the interest was earned by using clients’ money... I can therefore find no ground on which it could be held that this interest ever became the property of the solicitor...’, Lord Reid at 191
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.