Fry J was concerned with whether Mr Hallett had a fiduciary relation, given he held as a bailee, and not a trust, strictly speaking.

He held the first in first out rule applied, following Pennell v Deffell (1853) 4 De GM&G 372, so that a large proportion of Mrs Cotterrill’s money was in fact already paid out.

Sir George Jessel MR held that there was a fiduciary relationship, and the proceeds of the sale of the bonds could be traced.

The Court also held that in the case of a mixture of trust funds with the trustee's own money, only an equitable lien would be available as a remedy.

This has since been overruled by Foskett v McKeown [2001] 1 AC 102, where the House of Lords held that the beneficiary has the option of choosing an equitable lien or a constructive trust in the case of a mixed fund.