Trusteeship Flashcards
Cite 3 important cases for Removal of Trustees
|—Arnott v Arnott -> consistent non-cooperation rendered the trust inoperable
|—Spencer v Kinsella -> court must primarily have regard to welfare of beneficiares
|—Noore v McGlym -> Conflicts between his fiduciary duties and his personal interests
Cite 3 Cases for Duties And Powers of Trustees / Duty to Properly Exercise Discretion
|—Rule in Hastings v Bars -> court should not interfere unless: 1- ultra vires or unauthorised 2a- hadn’t taken irrelevant consideration 2b- hadn’t failed to take relevant considerations
|—Abacus Trust v Barr -> rule doesn’t require a mistake to be fundamental, just that an unconsidered relevant consideration qould have affected decision
|—Pittu Holt and Re Futter -> UKSC limited the application - breach of trust - ultra vines outcome - relevant consideration
Cite 2 Cases for Duties And Powers of Trustees / Duty to Not Profit / Remuneration and Expenses
|—Boardman v Phipps -> court has jurisdiction to order a trustee remunerated (24 trustees act 1893) trustee can reimburse himself out of the premises all expenses incurred in or about the execution of his trusts or powers
|—Cradock v Piper -> Solicitor trustee entitled to be paid legal fees for litigious work for trust (applied in Re Smith’s Estate)
Cite 4 Cases for Duties And Powers of Trustees / Duty to Not Profit / Profit
|—Keech vs Sandford -> trustee is liable for profits made under trust self-dealing rule - transaction is voidable at the instance of the beneficiary
|—Nane v Radley-Kane -> appropriation of shares was held to breach the self dealing rule
|—Holder v Holder -> Court refused to apply rule where son/executor mate it known at all times that he intended to purchase main apet in his father’s will
|—Tito vs Waddel n2 -> fair dealing rule Trustee attempts the purchase beneficiary’s beneficial interest, transaction is not voidable but can be set aside where trustee has taken advantage of his position , has not made full disclosure to beneficiary, and transaction in not fair and honest
Cite 2 Cases for Duties And Powers of Trustees / Duty to Not Profit / Duty not be in competition with trust
|—Moore v McGlynn -> Trustee may not compete with trust business, conflict fiduciary personal
|—Re Thompson -> profit competing business
Cite 1 Cases for Duties And Powers of Trustees / Duty to safeguard assets of the trust / Scope of the Power
|—Harari Settlement Trusts -> empowers trustees to invest in anything he honestly thinks is desirable
Cite 5 Cases for Duties And Powers of Trustees / Duty to safeguard assets of the trust / Standard of Care
|—Learoyd v Whiteley -> trustee must exercise care that an ordinary prudent man would have
|—Bartlett v Barclay’s bank -> the same
|—Bartlett and Re Waterman’s Will Trusts -> paid or professional trustees are expected to exercise higher standards of diligence and knowledge
|—Nestle v National Westminster Bank -> Failure to maintain value of investments was not a breach of trust
|—Stacey v Branch -> Even absolute discretion carries with it a duty to exercise reasonable care and prudence, one cannot simply act as an ordinary level of moral obligation to beneficiary
Cite 2 Cases for Duties And Powers of Trustees / Duty to safeguard assets of the trust / Ethical Investments
|—Cowan v Scargill ->management of mineworkers pension fund, trustees rejected investment plan unless modifications were made, court held they would be in breach of trust if they refused the plan
|—Harries v Church Commissioners for England
Cite 1 Cases for Duties And Powers of Trustees / Duty to not delegate
|— Banin v Hughes -> if a trustee fails to do so, he is fully liable to beneficiaries for any lop (?) that occurs when he left management to other co-trusters
