Thompson (Re)

Thompson (Re)

Gail was removed because she had a disabling conflict of interest that endangered effective administration: she initiated litigation against the estate creating potential cost liability payable to the estate from herself and co-plaintiffs, and she refused to acknowledge or pursue substantial potential claims (occupational rent and hydro costs) against Thomas; her demonstrated bias in favour of Thomas and inability to be neutral hampered efficient administration and justified replacing her with an independent trustee (CV Trustco), with approval of its compensation agreement subject to passing of accounts.

Citation
2023 BCSC 1591
Parties
Deceased; Will Maker: Hazel Lillian Thompson; Applicant; Beneficiary: Susan Thompson; Respondent; Beneficiary; Former Personal Committee: Patricia Thompson; Respondent; Executrix (removed): Gail Thompson; Co Executor (renounced); Beneficiary; Occupant of Dewdney Trunk Property: Thomas Thompson; Beneficiary; Opposing Sibling: Moira Thompson; Beneficiary; Residing Abroad: Katherine Thompson; Court Appointed Committee of Estate Prior to Death: Solus Trust; Proposed Independent Trustee/executor Appointed: CV Trustco Inc.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
11 September 2023
Procedural Posture
Estate Administration; Application to Remove/passover Personal Representative / Application and Reasons for Judgment (removal Ordered; Independent Trustee Appointed)
Outcome
Gail Thompson removed and passed over as executrix; CV Trustco Inc. appointed as independent trustee/executor; terms of CV Trustco letter dated February 3, 2023 approving Estate Services Compensation Agreement subject to passing of accounts; costs awarded to Susan and Patricia against Gail at Scale B.
Legal Topics
Removal of Executor, Conflict of Interest, Section 151 WESA, Passing of Accounts, Costs
Source Language
English
Wills and Estates Trusts Civil Procedure Fiduciary Duty Property Law Tax (incidental) Removal of Executor Conflict of Interest +3 more

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Parties

Hazel Lillian Thompson

Deceased; Will Maker

Susan Thompson

Applicant; Beneficiary

Patricia Thompson

Respondent; Beneficiary; Former Personal Committee

Gail Thompson

Respondent; Executrix (removed)

Thomas Thompson

Co Executor (renounced); Beneficiary; Occupant of Dewdney Trunk Property

Moira Thompson

Beneficiary; Opposing Sibling

Katherine Thompson

Beneficiary; Residing Abroad

Solus Trust

Court Appointed Committee of Estate Prior to Death

CV Trustco Inc.

Proposed Independent Trustee/executor Appointed

Procedural Posture

Estate Administration; Application to Remove/passover Personal Representative / Application and Reasons for Judgment (removal Ordered; Independent Trustee Appointed)

Legal Issues

  1. 1 Whether Gail Thompson should be removed/passed over as executrix due to conflict of interest and inability to act neutrally for all beneficiaries
  2. 2 Whether litigation initiated by Gail against the estate creates a disabling conflict (costs liability to estate)
  3. 3 Whether Gail's refusal to investigate/seek recovery of occupational rent and hydro expenses from Thomas compromises estate administration

Ratio Decidendi

Gail was removed because she had a disabling conflict of interest that endangered effective administration: she initiated litigation against the estate creating potential cost liability payable to the estate from herself and co-plaintiffs, and she refused to acknowledge or pursue substantial potential claims (occupational rent and hydro costs) against Thomas; her demonstrated bias in favour of Thomas and inability to be neutral hampered efficient administration and justified replacing her with an independent trustee (CV Trustco), with approval of its compensation agreement subject to passing of accounts.

Court Disposition

Gail Thompson removed and passed over as executrix; CV Trustco Inc. appointed as independent trustee/executor; terms of CV Trustco letter dated February 3, 2023 approving Estate Services Compensation Agreement subject to passing of accounts; costs awarded to Susan and Patricia against Gail at Scale B.

Orders

  • Gail Thompson is removed and passed over as executrix of the estate of Hazel Lillian Thompson
  • CV Trustco Inc. is appointed as independent trustee/executor of the estate