Vaughan v Barlow Clowes International Ltd [1991] EWCA Civ 11 is an English trusts law case, concerning tracing.
The receivers of Barlow Clowes, a failed investment management firm, applied to determine in what order they should distribute assets to the creditors in Portfolios 28 and 68.
The early investors appealed, represented by Mr Walker QC.
The Court of Appeal held that contributors could not have intended that withdrawals from the account, and investments then purchased, could be allocated by reference to the order the contributions were made.
Woolf LJ said (1) the first in first out rule would apply prima facie, but would not be applied if ‘impracticable or would result in injustice’ and (2) the rule would not be applied if contrary to the parties’ presumed intention (3) then the alternative basis for distribution would depend on which practical alternative is most satisfactory in the circumstances (4) all solutions must depend on the ability to trace money.