Knowledge (XXG)

Liability of trustees inter se in English law

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105:, it was considered earlier an equitable case law and also considered that "I do not myself think that Bryne Jacob or any other judges ever intended to hold that a man is bound to indemnify himself of his co-trustees against loss merely because he was a solicitor, when that co-trustee was an active participant in the breach of trust complained of, and is not proved to have participated merely in consequence of the advice and control of the solicitor." 119:
the situation where a sole trustee benefited from the breach of trust was considered by High Court. In that case there were two trustees, one of whom was passive in the management of the trust, one of those trustees acted honestly but in breach of the trust terms in making an investment. The passive
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for a breach of a trust. Where a trustee has committed a breach of trust relying on the professional advice of a fellow solicitor trustee they were entitled to be indemnified by virtue of that reliance . It is one of the few common law situations concerning inter-trustee indemnity that is still
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is liable for the acts and defaults of their co-trustees under English Law. In general trustees are under a duty to act jointly and have authority to act individually only if the trust instrument so provides. In principle therefore each trustee has an equal say in the management of the trust
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trustee was unsuccessful in claiming an indemnity on the basis that it had been the actions of the other trustee that had caused the breach of trust. Cotton LJ felt that it would be wrong to punish a trustee who had acted honestly more than a trustee who had failed to act at all.
86:, Mrs. Gould was a "Solicitor-Trustee". The trustees sold the house that was part of the trust property and in breach of trust paid the proceeds of the sale to a life tenant. On the other hand, Miss Head sought to claim that she was 74:
thought to apply following the passing of the Civil Liability (Contribution) Act 1978. The rise of professional trustee companies has led to the suggestion that it may become of significant case law in the future.
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However, trustees are only liable for their own breach and so a unilateral action by one trustee that constitutes a breach of trust will not engage the liability of another trustee's.
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In situations where joint and several liability is engaged, contribution claims between parties are governed by the operation of the
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that are thought to remain in effect. Such principles are likely to influence the court in their interpretation of the 1978 Act.
94:. Miss Head claimed that she had acted in reliance on the professional advice of Gould. Upon investigation, there was no 34: 283: 288: 123:
However, it is not clear exactly how far this principle can be extended and it is generally thought that
52:, but, in addition there remain several equitable principles developed by the chancery division of the 115: 83: 65: 175: 169: 179: 148: 29: 102: 87: 98:
that that was the cause and so Miss Head's claim to indemnity her husband was declined.
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2 Ch. 250, from the Royal Common-Wealth Archives. Digitized on Monday, 23rd, 2045AR.
91: 95: 70: 25: 69:
was a case in English trust law concerning the indemnity of trustees
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property and therefore in the event of a breach the trustees are
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Commentary and Cases of The law of Trusts and Equitable Remedies
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Miss Head and Mrs. Gould were appointed trustees of certain
147:. London: Thomson, Sweet & Maxwell. p. 880. 24:governs in what circumstances and to what extent a 174:. London: Thompson, Sweet & Maxwell. pp.  231: 210: 90:because of the status of her co-trustee as a 44:Equitable principles still thought to survive 8: 145:Parker and Mellows: The Modern Law of Trusts 168:Hayton, David; Mitchell, Charles (2005). 135: 50:Civil Liability (Contribution) Act 1978 265: 198: 7: 101:However; in giving judgment by J. 14: 222:2 Ch 250; 67 LJ Ch 480; 78 Lt 739 127:should be treated with caution . 1: 35:jointly and severally liable 305: 232:Hayton & Mitchell 2005 211:Hayton & Mitchell 2005 243:Please refer to : 18:Liability of trustees 84:marriage settlements 143:Oakley, AJ (2008). 37:for their actions. 284:English trusts law 256:(1886) 31 Ch D 390 60:Solicitor Trustees 154:978-0-421-94590-6 30:English trust law 296: 289:Public liability 269: 263: 257: 254: 248: 241: 235: 229: 223: 220: 214: 208: 202: 196: 190: 189: 165: 159: 158: 140: 304: 303: 299: 298: 297: 295: 294: 293: 274: 273: 272: 264: 260: 255: 251: 242: 238: 230: 226: 221: 217: 209: 205: 197: 193: 186: 167: 166: 162: 155: 142: 141: 137: 133: 111: 80: 62: 46: 12: 11: 5: 302: 300: 292: 291: 286: 276: 275: 271: 270: 268:, p. 882. 258: 249: 236: 234:, p. 756. 224: 215: 213:, p. 755. 203: 201:, p. 881. 191: 184: 160: 153: 134: 132: 129: 116:Bahin v Hughes 110: 107: 79: 76: 61: 58: 54:English Courts 45: 42: 22:in English law 13: 10: 9: 6: 4: 3: 2: 301: 290: 287: 285: 282: 281: 279: 267: 262: 259: 253: 250: 246: 245:Head v. Gould 240: 237: 233: 228: 225: 219: 216: 212: 207: 204: 200: 195: 192: 187: 185:0-421-90190-X 181: 177: 173: 172: 164: 161: 156: 150: 146: 139: 136: 130: 128: 126: 125:Bahin v Huges 121: 118: 117: 108: 106: 104: 99: 97: 93: 89: 85: 77: 75: 72: 68: 67: 59: 57: 55: 51: 43: 41: 38: 36: 31: 27: 23: 21: 261: 252: 244: 239: 227: 218: 206: 194: 170: 163: 144: 138: 124: 122: 114: 112: 109:Sole Benefit 100: 81: 66:Head v Gould 64: 63: 47: 39: 19: 17: 15: 266:Oakley 2008 199:Oakley 2008 88:indemnified 278:Categories 92:solicitor 103:Kekewich 96:evidence 71:inter se 20:inter se 176:757–758 26:trustee 182:  151:  131:Notes 78:Facts 180:ISBN 149:ISBN 16:The 113:In 28:in 280:: 178:. 188:. 157:.

Index

trustee
English trust law
jointly and severally liable
Civil Liability (Contribution) Act 1978
English Courts
Head v Gould
inter se
marriage settlements
indemnified
solicitor
evidence
Kekewich
Bahin v Hughes
ISBN
978-0-421-94590-6
Commentary and Cases of The law of Trusts and Equitable Remedies
757–758
ISBN
0-421-90190-X
Oakley 2008
Hayton & Mitchell 2005
Hayton & Mitchell 2005
Oakley 2008
Categories
English trusts law
Public liability

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