Thursday, October 31, 2019
Critically discuss the leadership and change management theories Essay
Critically discuss the leadership and change management theories within the case study - Essay Example Biogen Idec is a global biotechnology company that has transformed greatly in the past 25 years to become one of the largest companies in the world. Through mergers with other companies, it has developed into a big company with presence in most parts of Europe and America. Currently, the company is on the verge of changing its operations in order to improve the performance of the company. Managing change is an important aspect of the organization in order for them to remain competitive by responding the market needs. The concept of organizational change and leadership management require a lot of concern since any mistake may lead to big losses (Styhre, 2002; Charlton & Andrew, 2004). Organizations operate in increasing competitive and chaotic global business environment and thus it should form a major focus of the business management. This is because there is enough evidence that about 70% of organizational changes fail to yield enough fruits as projected by the management (Burnes & Jackson, 2011). A properly structured organizational change should thus take full care of content, people, and process since they are the determinants of success or failure of such an initiative (Myungweon, 2011). Leaders are the formulators and implements of any organizational change; hence, they should be responsible for the success or failure of such initiatives (Aaron & Elizabeth, 2012). Leaders are also important to the change process since they create and develop an acceptance culture of change in the organization and develop the ability to achieve such as change as projected by the company (Northouse, 2012). Change Models Kotters 8 Steps The use of Kotters method is evident in the change undertaken by Biogen Idec Inc since they began their initial step of organizational change by conducting research and creating urgency for change. In this method, organization change can be effectively managed using a dynamic 8-step approach that includes increased urgency, building grid team s, get the right vision, communicate for a buy in, enable action, create a short term win, donââ¬â¢t let up, make it stick. The steps are further divided into three phases whereby the first phase is creating a climate change; the second phase is engaging and enabling the whole organization while the last step entails implementing and sustaining the change (Hayes, 2010). Creating urgency This is the first step of Kotters change model whereby he argues that creating urgency enables the members know what they really want and develop a sense of urgency around the need for change. In the case of Biogen Inc, the headquarters in Paris was responsible for all finance, legal, Human resources, and commercial activities of the organization, making the decisions slow and bureaucratic. The urgency created by the management is upon realization that this type of organizational structure is slowing decision making and at times leading to erroneous decisions. They thus needed a structural model t hat can quicken decision making of the managerial functions to avoid several errors that may inhibit the development of the company. Creating urgency helps spark the initial motivation of the workers so that they respond by getting things moving in the direction of change. It involves showing people the poor performance of the organization and increased competition that threatens the existence of the company. Kotter (2012) argues that about three quarters of the organization management needs to support the change initiative for it to be successful hence, the need for creating urgency must be very strong. Form a powerful coalition After the worker have seen the need for change, they need to work together to achieve these desired changes. This step involves convincing people that change is necessary and it encompasses strong governance and sustenance from individuals within the organization. In order to influence the process of change within the organi
Tuesday, October 29, 2019
Standardized Testing Essay Example for Free
Standardized Testing Essay Standardized testing is seen as the answering to improving public education in the United States. Students face district- and state- mandated tests as well as national ones. However, standardized testing is not the answer to improving education. Teaching skills and learning environments both are effective ways to improve education. Tests are only used to evaluate how well a teacher is doing, therefore students shouldnââ¬â¢t have to take them. ââ¬Å"Giving answers under pressure without help or guidance, knowing no second chance will be given to pass is stressful (Mori, 139). Kids in todayââ¬â¢s generation are expected to understand so much more than they need to. According to No Child Left Behind (NCLB) in 2002 the United States dropped from 18th in the world of math on the Program for International Student Assessment (PISA) to 31st in 2009. A similar decrease was made in the science category but no change was made in the reading assessment. Also research has been done by the National Research Council to prove that standardized testing doesnââ¬â¢t help the education. Standardized testing has also been claimed to be an unreliable source when it comes to determining the studentsââ¬â¢ performance. Long term changes arenââ¬â¢t even caused, only temporary changes in the students learning due to the studying for that specific test. After the test is out of the way children tend to forget the information. Testing brings out the anxiety in young students. The students often react to tests by vomiting, crying, or sometimes even both (http://standardizedtests.procon.org/). Tests that inflict so much pressure on one student cant possibly be helpful with improving education. Teaching skills play a major role in the improving of public education but, students can only learn as much as they are taught. Being handed a packet of information and being told to fill in the blanks is only going to show that the student can fill in the blanks. Students need the information explained and repeated so they can remember it further on in their life. When teachers are enthusiastic about a certain subject they can catch the students attention. Teachers who talk all period just bore students causing their minds to wander. A few days later a test is in front of them and they have no clue what its about. Gettting students interested in different subjects will make them want to work harder and do good on the tests. Also the teacher has to have a welcoming personality. If a student is interested inà learning about history but disagrees with the teachers ideas on teaching, the student may choose to purposely do bad on the tests so the teacher looks bad. Elementary school teachers keep the minds of children intersted in school by games and activites. Then as the child goes through middle school the teachers become slightly boring. No more pictures and diagrams or even a break in learning is used. Then high school is there in the blink of an eye and all fun is out of learning. Its all about colleges, good grades, and preparing for the future. Standardized tests cant help education improve if students arent worrying about current events in their life. Improvements in learning environments would help public education increase. From what children observe at a young age helps determine how they will be in life. To build a good learning environment both the psychologists and instructionalists perspectives are needed. People learn by experience, not by reading books and taking tests. For example, think about when going to get a job. The person needing a job will be taught by being shown what to do, how to react, and how things work (http://tecfa.unige.ch/tecfa/research/CMC/andrea95/node4.html). The people getting a new job dont learn by reading text then answering questions; they learn by hands-on expierence (some places should offer IQ tests but unfortunately they dont). Also heighly effective teaching and learning environments should make the students feel safe and welcome. Classroom effort should be shown and the teacher should praise it. If students dont work with teachers to improve situations the information being taught will be forgotten. By showing the information is still remembered a few days later makes the teacher feel as if he/she is doing well so she will continue to do so. Improving public education shouldnt be just about standardized testing. Teacher, students, and parents all need to work together to encourage children to strive to do better. All of this information simply proves that tests show nothing more than teachers ability. The tests students are required to take such as state- and district- mandated tests shouldnt even be in the cirriculum. Information on each of these tests is from each marking period which means its forgotten by the time the nest one is ready.
Sunday, October 27, 2019
Theories on Conflict
Theories on Conflict Introduction Conflicts today abound which demand explanation. Understanding the roots of conflict is especially true now given the rise of populism which catapulted controversial leaders like President Donald Trump of the United States and President Rodrigo Duterte of the Philippines, each of their own right riding onto the wave of either anti-immigration or anti-crime sentiment. Trump has sparked numerous protests due to his contentious Muslim travel ban (Thrush, 2017) while Duterte has earned international condemnation for the spate of extrajudicial killings arising from his all-out war on drugs and criminality (Al Jazeera, 2017). Each of these leaders claim to be resolving root causes of conflict in their respective countries Trump, restricting immigration in order to address the imminent security threat that the liberal immigration policies of erstwhile US administrations have posed, while Duterte, clamping down on the drug trade which he considers to be a top cause of underdevelopment and n ational degeneration. The theories on conflict discussed and learned over the course of three weeks helped me frame a deeper understanding as to why both Trump and Dutertes analysis may be critically attacked and in what instances, they are either correct or fall short. A school of theories under the systems theory consider how the roots of violence are all interconnected and are products of social, political and economic interactions. New emerging theories such as the human needs theory consider the deprivation of basic human needs to be a direct cause of conflict and suggest that addressing the same would eradicate conflict. Lastly, various social theories from Karl Marx to Franz Fanon provide me with lenses to be used in studying social disruption for these theories really enunciate what causes societal fractures and what can be done about it. This paper is a critical reflection of the following body of conflicts theories. Discussion of Conflict and Social Theories Systems Theory Simply stated, the systems theory considers conflict to be the whole of many problematic parts of society which are inextricably linked. Conflict therefore arises not due to individual or micro-level differences and contradictions but of a general system. Systems theories seek to understand conflict by looking at how several elements located in a social system interact with one another. Violence, according to systems theorists, should be viewed from the level of (1) individuals (2) dyads; (3) subsystems (family, community, religious groups and general society). Subsystems are organized in a manner which could either encourage or deter or regulate violence. Direct efforts at changing elements of the system will not prosper since the system will immediately provide a replacement for the missing element. Hence, ending violence, which is a systematic problem requires a coordinated and comprehensive approach. The general systems theory is useful in uncovering relationships and interaction s which contribute to violence from different levels. However, its weakness lies in the fact that it is a value-free theory which requires theoretical directions. Structural violence Structural violence, according to John Galtung, pertains to a form of violence arising from a social structure or institution which harms people by deliberately depriving them of capacity to satisfy their immediate human needs. This kind of violence does not take a physical form or image but consists of avoidable impairment of fundamental human needs (Galtung,Ãâà 1969, p. 32). The notion of structural violence impels one to look for inequalities within social structures may it be inequalities in wealth, power, privilege, access and opportunity which breed injustice. In the same light, structural violence also compels one to look at the connections between what might be falsely considered as mutually exclusive worlds. In essence, the theory of structural violence as a way of addressing conflict encourages people to proceed with moral outrage and critical participation where previously our reflexive response would be passive acceptance of these inequalities. Institutionalized ra cism, classism and sexism are forms of structural violence which are usually considered as inherent characteristics of society. Galtung however encourages to look beyond these inequalities and to find connections in order to dismantle structures which permit these injustices. In my view, structural violence is a timely method of deconstructing conflict in todays world. For instance, the notion of viewing refugees as a potential source of conflict is a worldview tacitly accepted in global policy. Acceptance of refugees is viewed to potentially open the floodgates for terrorism, crime, and other degenerate activities that threaten national security. However, when viewed from perspective of structural violence, we can proceed to view the refugee crisis more critically and conclude that instead of treating refugees as potential threats, they should instead be viewed as people who deserve to be treated with dignity. Relative Deprivation Theory This theory assumes that social conflict arises due to peoples perceptions of inequality. When people perceive that there exists a disparity from what they deserve to enjoy from what they currently enjoy, they became discontented with their situation (Walker Pettigrew, 1984). The relative deprivation theory hypothesizes that conflict arises when the gap between two groups within a particular population is too wide, the possibility of rebellion becomes more likely. The assumption is that people are bound to perceive that they enjoy certain entitlements from society and when they are deprived of this while a number of other people belonging to the same population enjoy the same, dissent comes into being. Relative deprivation theory focuses on value expectations which need to be met within a certain society. Thus, when a society has a relatively high rate of economic inequality, the more likely it is that people will rebel. While the origin of the deprivation is economic, a state of po verty does not necessarily translate to violence. However, when individual expectations of poor people become transformed as a group identity, they become a political force that will not hesitate to use violence in order to combat their perceived discrimination. In other words, relative deprivation theory considers that violence stems from a persons judgment of his or her economic circumstances in the community. To a certain extent, an individuals subjective evaluation of his or her community status is essential to their conduct. Theory of cooperation The theory of cooperation proceeds from the notion that conflicts are generally characterized by cooperation and cooperation as twin motives. Deutsch (1949, 1985) formulated this theory in order to comprehend the conflict process better and how to come up with more effective conflict resolution methods. Deutschs primary thesis is that in order to resolve conflict, it is a key step to understand the nature of interdependence of both parties in conflict. Interdependence could be negative or positive. When the goals of both parties are negatively interdependent, a partys success automatically means the others failure. Upon the other hand, when the goals of both parties are positively interdependent, one partys success is correlated with the other partys success while one partys failure is also correlated with the other party failure. In the latter form of interdependence, cooperative relationships can be had in order to secure a win-win outcome for both parties to a conflict. Cooperative relationships are considered to demonstrate several positive features such as effective communication, openness, a friendly atmosphere and commitment to mutuality. In contrast, competitive relationships bring about the opposite results such as closed communication, lack of coordinated activities, an atmosphere of suspicion and a sense of domination. Based on Deutschs research, constructive conflict resolution is more linked to cooperative processes rather than competitive processes which he considered destructive. In order to foster cooperative relationships towards constructive conflict resolution, Deutsch likened it to friendly social relations. This is marked by empowering gestures and a reframing of attitudes. Thus, he recommends that both parties agree to commit to adherence to norms in the conduct of talks and negotiations. Among these norms include respect, honesty, responsiveness, forgiveness, and acknowledgment of responsibility. These values, due to their universal value and acceptance, can pose as common grounds for both parties to stand on. Emerging Conflict Theories: Human Needs Theory An emerging trend in conflict theory shifts the focus from the political economy to basic human needs. This perspective is anchored on the fact that human beings need to acquire essentials in order to live with dignity. Human needs theorists place the cause of conflict to unmet human needs. In this light, they argue that violence happens when certain groups or individuals are deprived of basic human needs (Burton, 1979). Theorists however have disagreed on what human needs means. In Burtons (1979) view, human needs that need to be addressed in the context of conflict go beyond the basic biological or subsistence needs. Instead, unmet needs related to social conflict include identifiy, recognition, security and development. As Burtons human needs theory progressed, he highlighted how existing state systems have miserably failed to provide a sense of identity thereby fueling ethno-linguistic separatist movements. If certain ethnic groups are deprived of their freedom to express their own national identities within the status quo, they will tend to establish parallel revolutionary systems in order to achieve the same. Burton provides as concrete examples the ethnic nationalist struggle in Kosovo in 1989 as well as various gang subcultures. Burton opined that human need theory can help explain conflict and pave the way for better conflict resolution because Rubenstein (2010) considers the human needs theory as providing a better explanation to social conflict compared to theories which focus only on the errors of a few manipulative leaders or institutions, as embodied in Samuel Huntingtons clash of civilizations theory. Echoing Burtons view, Rubenstein views the human needs theory to provide the study of conflict with a more objective basis which goes beyond local or cultural differences. The needs-based approach to understanding social conflict defies traditional notions of conflict and instead uses unsatisfied human needs as the independent variable to explain why elite dominance or cultural differences lead to conflict. However, Park (2010) critiqued Burtons positivist framework of needs theory and encouraged a more critical definition of needs to mean that there are needs that do not directly bear upon material sustenance like recognition and freedom from coercion that must also not be obstructed lest there be undesirable consequences (p. 1). Park took issue with Burtons reliance on the biological explanation for Needs Theory to support protection of rights and universal freedoms. Instead, she advocates for a psychoanalytic view to suggest that not needs are not universal. According to her, needs are essentially socially constructed. The needs which people pursue are socially engineered and they may even pursue false pleasures. In sum, Park considers with caution the use of the black box that is human needs. The definition of human needs is not simple but very complex and difficult to understand. Conflict from the Lens of Social Theory Equally relevant to the study of conflict is the development of social theory arising from social disruption. In Charles Lemerts (2016) book, multiple social theorists and their viewpoints on conflict are critically discussed. From the classical Great White Men theories arose alternative views on social relationships and social conflict which can be applied to the contemporary context. Among the most notable of these social theorists include of course, Karl Marx, publicly voted as the worlds greatest philosopher (BBC News, 2015). Marx wrote Das Kapital as well as the Manifesto together with Friedrich Engels at a time of extreme economic discontent. Marx focused on his critique of political economy which obscures the internal relationships of labor and capital and discussed a pivotal feature which is the workers alienation and estrangement. What is the most striking and palpable among these types of alienation is what fuels labor unrest: that of labor commodification and the reduction of the worker to a mere object. Simply stated, the more a worker produces out of his labour power, the cheaper he or she becomes as a commodity. Because the worker is paid at a fixed rate, more and more profit is being gained by the capitalist due to his work but unfortunately the worker does not earn additional wages for it. Marxist thought has gained traction especially with the cris is of global capitalism, environmental destruction, and global poverty. Until, his theory of class as the root cause of contradiction in society remains very relevant. However, many theorists developed a more expansive construction of his view on social classes. Max Weber, another classical theorist, came up with an alternative approach to the study of classes. For Marx, ones class is defined and determined by ones ownership of the means of production. Thus, Marx considered historical class antagonisms and identified these two groups in contemporary capitalist society as the proletariat and bourgeoisie. The contradictory relationship that the classes have pushes social development forward. Weber considers social groups and classes as determined through the distribution of power. Social stratification then, occurs through overlapping means and not only through economic differentiation. Other social theorists also focus on micro-level analysis to understand conflict. Sigmund Freud uses psychoanalytic theory to understand inner conflict among human beings. Freuds treatise laid down the anatomy of the self as made up of the interaction between three components dynamically interacting: the id, ego, and superego. All of these components of the self develop with socialization hence constructing the social self. Biology interacting with socialization shapes a human beings personality. When one of the three elements is allowed to dominate the other two, social problems may arise. Also developing Marxs theory of alienation, Horkheimer and Adorno criticized the use of cultural goods in order to project false consciousness. Cultural goods are appropriated into transforming humans as passive and docile objects of a system which was actually oppressing them. Aside from creating a false consciousness, they also suggested that popular culture is geared at creating false needs in order to engineer human beings into consuming in a massive scale. This cultural appropriation in turn heightens humans alienation and creates possible sources of conflict. The readings also tell us that social theories do not stay static. Even among key capitalist thinkers, there have been different approaches to address economic problems. For instance, John Maynard Keynes challenged the neoclassical economic paradigm advanced by Adam Smith and disciples which advocated for minimal to no government interference in favor of full-out control of the invisible hand of the market to attain equilibrium.Ãâà Instead, Keynes suggested implementing government regulation and intervention in order to arrest the economic recession. Social theories also help us understand racial conflict. Martin Luther King, Jr. called for an end to racial discrimination which he considered a ghastly reality America must face as a nation. In describing the horrendous social conditions which African Americans and other colored peoples are subjected to, King claimed that America had manacles of segregation and chains of discrimination which breed chronic poverty and injustice for certain segments of the population. Franz Fanon provides a stirring account of decolonization as a form of liberation. His work remains relevant especially in light of the fact that many of todays underdeveloped countries are former colonies of imperialist nations which have not completely been unshackled from their former masters economically, politically and culturally. It is only through liberation, which is necessarily violent that the colonized thing becomes fully a man. C. Wright Mills teaches the student to develop the sociological imagination which is a way of looking at themselves as the result of both biology and history and in always looking at the world through fresh eyes. One is challenged to go beyond looking at ones self as well and instead consider ones development as product of several processes occurring within a system. Conclusion Given the reality of global conflict today, conflict theories and social theories enable one to look at the phenomenon with renewed understanding and critical outlook. There are classical and alternative approaches of looking at conflict and conflict resolution processes. There are also classical and alternative ways of interpreting social conflict throughout history. Having a steady grasp of these theories assist the student thoroughly by providing him with several lenses to look at the problem and identify solutions. References Al Jazeera (2017). Thousands march against Dutertes war on drugs. Retrieved from http://www.aljazeera.com/news/2017/02/thousands-march-duterte-war-drugs-170218034827033.html Deutsch, M. (1985). Distributive justice: A social psychological perspective. New Haven, CT: Yale University Press. Galtung, J. (1969). Violence, Peace, and Peace Research. Journal of Peace Research, 6 (3), 167-191. Lemert, C. (2016). Social Theory: The Multicultural, Global and Classic Readings (6th ed.) Boulder, CO: Westview Press. Park, L. (2010). Opening the black box: reconsidering needs theory through psychoanalysis and critical theory. International Journal of Peace Studies. Retrieved from https://www.gmu.edu/programs/icar/ijps/vol15_1/PARK15n1-IJPS.pdf Rubenstein, R. E. (2010). Basic Human Needs: The Next Steps in Theory Development. The International Journal of Peace Studies, 6 (1), 51-58. Thrush, G. (2017). Trumps travel ban blocks migrant from six nations, sparing Iraq. Retrieved from: https://www.nytimes.com/2017/03/06/us/politics/travel-ban-muslim-trump.html?_r=0Deutsch, M. (1949). A theory of cooperation and competition. Human Relations, 2, 129-151.
Friday, October 25, 2019
Mono Basin Volcanism Essay -- Geology Volcanoes Volcano Papers
Mono Basin Volcanism The last basin in the Basin and Range before the Sierra Nevada Mountain range is the Mono Basin. The Mono Basin consists of landforms such as the Mono-Inyo Craters, Black Point, Negit Island, Paoha Island, Mono Lake, Devils Punch Bowl, Panum Crater, and some others (Hamburger et al; 2004). All of these landforms were created by volcanism. Actually, the Mono Basin is in one of the most volcanically active places in the world (Forest Service; 2004). Paoha Island, Negit Island, and Panum Crater are the most recent volcanoes to erupt, which are the furthest north in the basin. The volcanoes' ages tend to get older the further south they are from Panum Crater; with the exception of Paoha. Eruptions in the Mono Basin have tended to occur in five hundred year intervals over the past two thousand to three thousand years (Molossia; 2004). Hot springs and fumeroles and other signs show that this area is still active (USDA; 97). Though there has not been any volcanic eruptions in the las t six hundred years, there is still evidence of volcanic unrest in the Mono Basin area. (The Picture above compliments of USGS). The Mono Craters were all formed within the last forty thousand years. These craters are localized on a north-trending fissure system that starts at the south of Mammoth Mountain up through the western moat to the north shore of Mono Lake; this system extends about fifty kilometers (USGS;2004). There are thirty domes that formed together (Molossia;2004). They were originally formed by the intrusion of a dike. About six hundred years ago when the magma began rising in the southern end of the Mono-Inyo Craters there was a series of eruptions and ground cracking. The dike was spreading both hor... ...is Panum Crater that is six hundred and forty years old (Topinka:2001). (Picture below compliments of USGS). Sources Molossian Institute of Volcanology. Long Valley Caldera. 2004 http://www.molossia.org.org/volcanology/longvalley.html Topinka, Lyn. Mono-Inyo Craters. Last updated 11/09/01. http://vulcan.wr.usgs.gov/livingwith/volcanicpast/places/volcanic_past_long_valey.html. U.S. Department of Agriculture. Mono Basin. National Forest Scenic Area. Inyo National Forest. 11/97. U.S Geological Survey. Long Valley Observatory Website. Mono Lake Area, California. 2004. http://lvo.wr.usgs.gov/Inyoeruptions/inyoflows.html http://lvo.wr.usgs.gov/history.html Wood and Kienle, 1990, Volcanoes of North America: United States and Canada: Cambridge University Press, 354p.,p.256-262. http://vulcan.wr.usgs.gov/volcanoes/nevada/description_nevada.html
Thursday, October 24, 2019
Criteria for Example Essay
The Criteria For A Good Example Essay There are several factors that contribute to good example essay writing. Having excellent grammar, using words correctly, punctuation, and presentation are the biggest points to me. Grammar is important for several reasons. Grammar is what enables us to make structured sentences. Everyone uses grammar to form a sentence. If you have bad grammar, the point of your sentence(s) may become unclear and make it hard for a reader to understand what you are saying. Using words correctly shows that you have a basic knowledge and understanding of grammar. It is a pet-peeve of mine. If someone writes, ââ¬Å"There enrolled in English class. â⬠as opposed to, ââ¬Å"They're enrolled in English class. â⬠it makes them sound less educated then someone who uses the right form of the word. Using punctuation the right way is very important because it can change the whole meaning of a word or the structure of your sentence. For example: if someone is trying to say, ââ¬Å"There is the classroom for my English class. and they write, ââ¬Å"They're is the classroom for my English class. â⬠it changes the sentence to ââ¬Å"They are is the classroom for my English class. â⬠It just simply doesn't make sense. Also, punctuation allows a writer to separate thoughts, show where someone speaking would normally pause, and make the sentence more easily understood to the reader. Presentation is, in my opinion, the most important thing. It remind s me of my career with food, for example. There could be the most amazing tasting dish in front of you but you would never know it if the plate was a sloppy mess. You are more likely to enjoy a dish if it appears to look appealing before you've even tasted it. The same goes with an essay. If the format is all wrong and it is hard to understand, you will be more likely to think the content isn't well prepared and thought out. In conclusion, I believe you can create your own idea of the criteria for good essay writing. This was my example of what I think it takes to be a successful essay writer. You must have a strong knowledge of all the components you believe are important to successfully express your statement.
Tuesday, October 22, 2019
Westdeutsche Landesbank Girozentrale
Previously, the courts had only allowed awards of compound interest if the claimant could establish a property right (though this was later reversed in Samara Metals Ltd v IIRC[I]). Accordingly Westchester bank argued that when it paid over the money a re us Ting trust arose immediately, because the bank plainly did not intend to make a gift. Among t he arguments, counsel for the bank submitted that a resulting trust arose on all unjust enrichment claim s, which this was, given that the basis for the initial contract had failed.The council contended that on trade sectional trust law principles here could be no resulting trust (and therefore no property right, and comps undo interest) because the council's conscience could not be affected when it could not know (before the judgment in Hazel) that the contract was void. A resulting trust needed to be linked to a deemed intent Zion of the parties that money be held on trust, but there was none because the bank had intended t he money to pass under a valid swap agreement (even though it did not turn out that way).It followed t hat compound interest could only begin accruing from the later date of the council's conscience been g affected. On the 18 February 1 993, Hoboes J held the bank could recover the money because the council had been unjustly enriched at the bank's expense, and could recover compound I interest. Hazel v Hammerheads and Pelham LABEL] was considered and Sinclair v Brougham] was applied. On the 17 December 1993, the Court of Appeal, with Dillon U, Elegant LLC and Kennedy LLC, upheld the High Court, with Andrew Burrows acting for Collision LB, and Jonathan Assumption ICQ for Westchester.The council appealed. Judgment The House of Lords by a majority (Lord Brownstone's, Lord Slyly and Lord d Lloyd) held that Westchester bank could only recover its money with simple interest because e it only had a personal claim for recovery in a common law action of money had and received. But the e bank had no pro prietary equitable claim under a resulting trust. There was no resulting trust because t was necessary that the council's conscience had been affected when it received the money, by knoll edge that the transaction had been ultra fires and void.Consequently it was necessary that there would d be an ââ¬Å"intentionâ⬠that the money be held on trust, but this was not possible because nobody knew that the transaction would turn UT to be void until the House of Lords' decision in Hazel v Hammerheads and Pelham LB in 1991. [4] In his Lordship's view all resulting trusts (even those described by Meagerly a s ââ¬Å"automaticâ⬠in Re Bandleader's Trusts (No depended on intention and were not connected with the law of unjust enrichment. It followed that no trust arose, and there was only a personal claim m for the money back.This meant, said the majority, that only simple interest, and not compound interest t was payable (a controversial decision that was overturned in Samara Meta ls Ltd v IIRC[6]). The two dissenting judges, Lord Goff and Lord Wolf, also thought that there would be no resulting trust of the money because if a proprietary claim were available, in other case s like this it would have an unfair impact on other creditors of an insolvent debtor, and similarly because it could potentially be unfair if assets could be traced.However, they would have held that compound d interest should be available on personal claims. Lord Goff, however, expressly did not enter into a discussion of the points about unjust enrichment that went beyond the scope of the present case. Lord d Wolf quoted De Havilland v Powerboat[7] where Lord Mansfield CA stated, ââ¬Å"that though by the common law, book debts http://en. Kipped. Org/wick/ do not of course carry interest, it may be payable in consequence of the usage e of particular branches of trade; or of a special agreementâ⬠.There was no reason why compound intern SST should not be awarded if it was ordinary com mercial practice. Lord Goff gave his judgment first, agreeing that there was no resulting trust of r different reasons, but in dissent arguing that compound interest should be awarded on personal claim (2) A proprietary claim in restitution have already stated that restitution in these cases can be achieved by means off personal claim in restitution. The question has however arisen whether the Bank should also have the benefit of an equitable proprietary claim in the form of a resulting trust.The immediate reaction must be why should it? Take the present case. The parties have entered into commercial transaction. The transaction has, for technical reasons, been held to be void from the beginning. Each party is entitled to recover its money, with the result that the balance must be repaid. But why should the plaintiff Bank be given the additional benefits Lord Goff. Which flow from a proprietary claim, for example the benefit of achieving priority in the event of the defendant's inso lvency?After all, it has entered into a commercial transact Zion, and so taken the risk of the defendant's insolvency, just like the defendant's other car editors who have contracted with it, not to mention other creditors to whom the defendant t may be liable to pay damages in tort. Feel bound to say that I would not at first sight have thought that an equitable proprietary claim in the form of a trust should be made available to the Bank I n the present case, but for two things.The first is the decision of this House in Since air v Brougham [1 914] AC 398, which appears to provide authority that a resulting trust may ended arise in a case such as the present. The second is that on the authority sees there is an equitable jurisdiction to award the plaintiff compound interest in cases who ere the defendant is a trustee. It is the combination of those two factors which has pr vided the foundation for the principal arguments advanced on behalf of the Bank in sup port of its submission that it was entitled to an award of compound interest.Lord Goff considered points about compound interest, suggesting there as no particular reason why compound interest should not be awarded for persona I claims. He then continued on the issue of proprietary restitutionâ⬠¦ In a most interesting and challenging paper published in Equity: Contemporary Y Legal Developments (1992 deed. Goldstein). Professor Birds has argued for a wider roll e for the resulting trust in the field of restitution, and specifically for its availability in ca sees of mistake and failure of consideration. His thesis is avowedly experimental, writ ten to test the temperature or the water.I feel bound to respond that the temperature o f the water must be regarded as decidedly cold: see. E. G. , Professor Burrows in [1995] RL R 15. And Mr.. W. J. Swaddling in (1996) 16 Legal Studies 133. In the first place, as Lord Brownstone's points out, to impose a resulting try just in such cases is inconsistent with t he traditional principles of trust law. For on re accept of the money by the payee it is to be presumed that (as in the present case) the Eden itty of the money is immediately lost by mixing with other assets of the payee, and at the at time the payee has no knowledge of the facts giving rise to the failure of consideration.By the time that those facts come to light, and the conscience of the payee may there ebb be affected, there will therefore be no identifiable fund to which a trust can attach h. But there re other difficulties. First, there is no general rule that the property in money paid under a void contract does not pass to the payee: and it is difficult to escape the con occlusion that, as a general rule, the beneficial interest to the money likewise passes to the p aye.This must certainly be the case where the consideration for the payment fails after the payment is made, as in cases of frustration or breach of contract: and there a appears to be no good reason why the sa me should not apply in cases where, as in the pres .NET case, the contract under which the payment is made is void ABA monition and the considerate on for the payment therefore fails at the time of payment. It is true that the doctrine of mistake might be invoked where the mistake is fundamental in the orthodox sense of that word.But that is not the position in the present case: moreover the mistake in the p resent case must be classified as a mistake of law which, as at the law at present stands, c rates its own special problems. No doubt that uncircumcised doctrine will fall to be race insider when an appropriate case occurs: but I cannot think that the present is such a case, since not only has the point not been argued but (as will appear) it is my opinion the t there is any event jurisdiction to award compound interest in the present case.For all of these reasons I conclude, in agreement with my noble and learned friend, that there e is no basis for holding that a resulting tru st arises in cases where money has been paid u ender a contract which is ultra fires and therefore void ABA monition. This conclusion has t he effect that all the practical problems which would flow from the imposition of a rest Ting trust in a case such as the present, in particular the imposition upon the recipient o f the normal duties of trustee, do not arise.The dramatic consequences which would occur re detailed by Professor Burrows in his article on ââ¬ËSwaps and the Friction between n Common Law and Equity' in [1995] RL 1 5, 27: the duty to account for profits accruing f room the trust property; the inability of the payee to rely upon the defense of change of position: the absence of any limitation period: and so on. Professor Burrows even goes so far as to conclude that the action for money had and received would be rendered otiose SE in such cases, and indeed in all cases where the payer seeks restitution of mistaken p aments.However, if no resulting trust arises, it al so follows that the payer in a case such h as the resent cannot achieve priority over the payee's general creditors in the even OTF his insolvency a conclusion which appears to me to be just. For all these reasons conclude that there is no basis for imposing a resulting trust in the present case, and I therefore reject the Bank's submission that it was here .NET title to proceed by way of an equitable proprietary claim. I need only add that, in area Chining that conclusion, I do not find it necessary to review the decision Of Colluding J. N C hash Manhattan Bank AN v Israelites Bank (London) Ltd [1 981] Chi 105. Lord Brotherliness's judgment, agreed with by the majority, followed. Was there a Trust? The Argument for the Bank in Outline The Bank submitted that, since the contract was void, title did not pass at the date of payment either at law or in equity. The legal title of the Bank was extinguish d as soon as the money was paid into the mixed account, whereupon the legal title be came me vested in the local authority.But, it was argued, this did not affect the equitable inter est., which remained vested in the Bank (ââ¬Å"the retention of title pointâ⬠). It was submitted t hat whenever the legal interest in property is vested in one person and the equity blew interest n another, the owner of the legal interest holds it on trust for the owner of the e equitable title: ââ¬Å"the separation of the legal from the equitable interest necessarily import TTS a trust. â⬠For this latter proposition (ââ¬Å"the separation of title pointâ⬠) the Bank, of course, relies on Sinclair v Brougham [1914] AC 598 and Chase Manhattan Bank [1981] Chi 105.The generality of these submissions was narrowed by submitting that the trust t which arose in this case was a resulting trust ââ¬Å"not of an active characterâ⬠: see per Vise count Holland L. C. In Sinclair v Brougham, at p. 421. This submission was reinforced , after implosion of the oral argument, by sen ding to your Lordships Professor Pete r Birds' paper Restitution and Resulting Trusts,â⬠Goldstein, Equity: Contemporary Leg al Developments (1992). P. 335. Unfortunately your Lordships have not had the advantage of any submissions from the local authority on this paper, but an article by Wi Lima Swaddling ââ¬Å"A new role for resulting trusts? 16 Legal Studies 133 puts forward c enter arguments which I have found persuasive. It is to be noted that the Bank did not found any argument on the basis that t he local authority was liable to repay either as a constructive trustee or under the in p reason liability of the wrongful recipient of the estate of a deceased person establish deed by In re Diploid [1 948] Chi. 465. Therefore do not further consider those points. The Breadth of the Submission Although the actual question in issue on the appeal is a narrow one, on the AR GU meets presented it is necessary to consider fundamental principles of trust law.
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