Brown v Robertson: SCS 21 May 1896

There is no fiduciary relation between an executor, whether dative or nominate, and the creditors of a deceased person, and the former is not bound to administer the executry estate for behoof of the latter, but must merely account for it as at the date of the deceased’s death. Globe Insurance Co. v. Mackenzie ( 7 Bell’s App. 296), followed.
The widow of a publican having been appointed his executrix-dative, continued his business, and obtained a transfer of the licence in her own name and a renewal of the lease. No steps were taken at that time by the creditors of the deceased to vindicate their rights, and no arrangement was made by them with the executrix as to the terms upon which she was to carry on the business. Eighteen months after the creditors sequestrated the estate of the deceased, and the trustee subsequently raised an action against the executrix, concluding, inter alia, for the profits which she had made in the business, and for the enhanced value of the goodwill. Held that the executrix was bound to account only for the value of the estate, including the goodwill, as at the death of her husband.

[1896] SLR 33 – 570

Wills and Probate

Updated: 23 January 2022; Ref: scu.612642