Family money had been placed into a trust to be managed by a bank. It was said that the bank had wrongly advanced money to the daughter allowing her to fritter away large parts of the capital
Held: The bank had misunderstood the power of advancement given, and was liable to replace nearly pounds 15,000 as having been expended in breach of trust for which they could be compelled to account.
Wilberforce J said: ‘The . . court has to consider all the circumstances in which the concurrence of the cestui que trust was given with a view to seeing whether it is fair and equitable that, having given his concurrence, he should afterwards turn round and sue the trustees; . . subject to this, it is not necessary that he should know that what he is concurring in is a breach of trust, provided that he fully understands what he is concurring in, and . . it is not necessary that he should himself have directly benefited by the breach of trust.’
Where a limitation period applies then it it is not open to the court to consider the question of laches.
Judges:
Wilberforce J
Citations:
[1962] 1 WLR 86
Statutes:
Jurisdiction:
England and Wales
Cited by:
Appeal from – Re Pauling’s Settlement Trusts (No.1) CA 29-May-1963
Property had been placed in trust for the daughter of the family, fearing that she might fritter it away. The trust was managed by the bank. The judge had found that, having misunderstood the powers of advancement given, the bank was liable to repay . .
Cited – Pullan v Wilson and Others ChD 28-Jan-2014
The court was asked difficult questions concerning the reasonableness of the remuneration charged to a number of family trusts by a professional trustee.
Held: Excessive claims for fees had been made, and the trustees were ordered to repay . .
Considered – Green and others v Gaul and others CA 28-Jul-2006
The court considered the validity and effect of a compromise agreement reached to settle dispute in administration of estate. The time for making a claim against the executor of an estate begins to run from the time when the executor has paid the . .
Cited – Henchley and Others v Thompson ChD 16-Feb-2017
The Claimants sought an order directing the Defendant to provide a full account of his dealings with the assets of the two trusts as a trustee or as a de facto trustee.
Held: The court has a discretion whether or not to make an order for an . .
Lists of cited by and citing cases may be incomplete.
Trusts, Limitation
Updated: 15 May 2022; Ref: scu.534162