Investment And Delegation

Question 1

Target Holdings v Redferns

Answer 1

An unauthorised investment will not result in liability unless a loss is proven.

Question 2

Fry v Tapson

Answer 2

Trustees did not exercise sufficient care in their choice of agent. An agent should always be chosen to act within agents proper sphere of expertise.

Question 3

Bartlett v Barclays Bank Trust

Answer 3

Bank, as trustee, embarked on hazardous development. Claimant sustained a large loss. Bank was in breach of duty as trustee. Had acted honestly but not reasonably.

Question 4

Nestle v National Westminster Bank

Answer 4

Investment made no money. No loss had been made so breach of failure to exercise prudent investment meant defendants were not liable.

Question 5

Cowan v Scargill

Answer 5

Personal views were taken into account when making the investment. Must only take into account what is best for the beneficiaries. They were in breach of trust.

Question 6

Harries v Church Commissioner

Answer 6

Investments were made which were financially secure but incompatible with Christian views. This did not matter. The trustees only had to ensure that the financial interest of the trust was taken into account

Question 7

Armitage v Nurse

Answer 7

Liability was excluded for negligence in clause of settlement. No trustee was liable for loss or damage to claimants fund.

Question 8

Speight v Gaunt

Answer 8

A trustee must act for his beneficiaries as a prudent person of business would act in their own affairs.

Question 9

Re Brogden

Answer 9

Trustees have a duty to enforce collection of sums due to the trusts, and if necessary by litigation.