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Re Pauling’s Settlement Trusts (No 2); 1 Jun 1963

References: [1963] 1 All ER 857, [1963] 3 WLR 742, [1963] Ch 576
Coram: Wilberforce J
An application was made for the trustee to be replaced. The trustee complained that he would remain liable in certain events, and sought an indemnity from any new trustee out of the trust fund.
Held: A new trustees would be under ‘the normal duty of preserving an equitable balance, and if at any time it was shown they were inclining one way or the other, it would not be a difficult matter to bring them to account.’ The court asked to what extent a trustee may have a lien over the trust fund for the liabilities to which that trustee may be subject.
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