//
archives

Trustee liability

This category contains 108 posts

Loss of morale

Triezenberg v Mason (As to power and appointment and costs) follows the earlier trustee removal decision.  See Buyer’s remorse. By way of background the High Court removed Mr Mason and his incapacitated wife as trustees of two family trusts.  A rift had occurred between the competent trustees that had resulted in significant dysfunction.  No orders … Continue reading

Exit stage left

Oldfield v Oldfield relates to the trust consequences of a marriage breakup.  Specifically, who should be the trustees when the settlors, who are also trustees, can no longer work together. Mrs Oldfield wishes to see Mr Oldfield removed as a trustee.  Mr Oldfield’s view is that it is not appropriate to replace the trustees, rather the … Continue reading

Disclosure vs Discovery

Is a beneficiary more entitled to trust information pursuant to an application for discovery, rather than pursuant to a an application for disclosure? As a basic principle, courts do not permit discovery as a “fishing expedition.” However, as noted in Gavin v Powell at [41] “… the trustees’ obligations as to disclosure and a beneficiary’s right … Continue reading

To Beddoe or not??

McLaughlin v McLaughlin relates to an application for a Beddoe Order by the trustee (Glasgow Harley Trustee Limited (Glasgow Harley) of the Ashley Trust (the Trust).  Two beneficiaries of the Trust seek the removal of Glasgow Harley who they are also suing for breaches of trust. Glasgow Harley denies any wrong doing and seeks a … Continue reading

Beneficiary rights – never the twain shall meet

In Little v Howick Trustee DL Limited a beneficiary sought a review of trustee decisions and the removal of a court appointed trustee.  Perhaps surprisingly, considering the position taken in the Law Commission’s draft Trusts Bill and the Trusts Bill currently before Parliament regarding beneficiary rights,  Brewer J found that a discretionary beneficiary had no standing to seek a … Continue reading

Strangers and Beddoe orders

A Beddoe order (the name derives from the case Re Beddoe (Downes v Cottam))  is an order made by the court that permits trustees to incur expense on behalf of the trust filing or defending proceedings. A Beddoe order (if obtained) protects the trustees against claims by the beneficiaries that the action should not have been brought … Continue reading

Between a rock and a hard place

Mr Pratley was a Court appointed executor and trustee of two estates.  At the time of his appointment a 2-day hearing had already been set down to determine a claim against the prior executor and trustee.  The time-line is as follows: Mr Pratley’s appointment as executor and trustee – 20 October 2015 21 October 2015 Mr … Continue reading

Equitable lien equality

As noted in Representation of Rawlinson & Hunter SA re Z Trusts at decision of the Royal Court of Jersey at [2] a trustee’s equitable lien is a “device of equity granted to trustees by the Court to give them rights of indemnity and priority over the interest of beneficiaries.”  The Royal Court in this case then … Continue reading

Costs bite when trustees fight

Trustees fall out, sometimes to the point where a working relationship is no longer possible. Applications to remove trustees are becoming an increasingly common occurrence. So, should trustees fight attempts to remove them? When is it appropriate to do so, and when not? And what are the potential consequences of misjudged opposition? The recent decision … Continue reading

Hastings-Bass revisited

The “Rule” in Hastings-Bass (more properly the rule in Mettoy) invites a court to “wave the judicial magic wand” and void decisions made by trustees, together with the attendant consequences,  when trustees have made decisions with consequences from which they now with to resile.    The logic of “the “Rule” was to protect beneficiaries.  However, where … Continue reading

Categories