General Communications Ltd v Development Finance Corporation of New Zealand Ltd - [1990] 3 NZLR 406

Trusts and trustees — Constructive trust — Quistclose trust — Financier paid money to borrower's solicitor for express purpose of paying suppliers of goods to borrower, and the solicitors gave undertaking to hold the money in trust for that purpose — Goods were supplied in reliance on assurances by solicitors to make payment on due date — Prior to due date for payment financier recalled money held by solicitors — Whether solicitors held money on constructive trust for supplier — Whether financier was entitled to revoke trust at will — Whether financier held recalled money on constructive trust for supplier — Whether financier was liable to account to supplier.

Practice and procedure — Judgments and orders — Interest on judgment — Commercial rates — Financier held money on constructive trust for supplier of goods and used it as part of its general investment funds — Whether judgment against financier should carry compound interest at commercial rate as proper assessment of likely profit for which financier had to account.