Reading v Attorney-General

Reading v Attorney-General AC 507; is an English trusts law case, concerning constructive trusts.

Facts

Mr Reading was stationed in Egypt as an army sergeant. Smugglers paid him to ride in their lorries, while they were doing their smuggling of illegal spirits, while visibly wearing his army uniform, hence making a search less likely. Mr Reading got between £1000 and £4000 each time, but was caught. The Crown seized the money he was paid, £19,325 4s 8d in total, and put him in prison. Mr Reading claimed that the money should be returned under an action for money had and received. The Crown argued it was entitled to retain the sums, which must have been received in "trust" for the Crown.

Judgment

The House of Lords held that the Crown could retain the money for many reasons, including that Mr Reading was in a fiduciary position. He was required to give up all unauthorised profits to his principal, the Crown. Samuel [Porter, Baron Porter|Lord Porter] said the following.