(NB PRIVY COUNCIL DECISION ON A NZ CASE): Ps agreed with D to buy a certain quantity of bullion that would be stored with D and that P could order it to be delivered on 7 days notice. However D failed to store enough bullion to meet all the customers’ demands. P claimed that D had held it on trust for them, so as to get ahead of secured creditor banks in the queue to have their money returned upon D’s bankruptcy. PC rejected this argument on the same basis as Re London Wine: that the bullion of each individual customer was not kept separate for him but was kept with the general supply, and thus the arrangement did not reach the required level of certainty of subject matter. It rejected the idea of introducing a remedial constructive trust.
Lord Mustill: There would be no way of telling when the proprietary interest arose if imposed retroactively.