Kyle Estate v. Kyle

Kyle Estate v. Kyle

The plaintiff, acting as alternate executor, is entitled to indemnity for legal costs because he recovered misappropriated trust assets for all beneficiaries; special costs are justified against the breaching executor for reprehensible conduct before and during litigation and will be assessed against Chris, with an alternative award of double Party and Party (Scale B) costs if special costs are not upheld; double costs are not available in conjunction with special costs.

Citation
2017 BCSC 752
Parties
Plaintiff (alternate Executor and Trustee of the Estate of John (jack) Henderson Kyle Jr.): Robert William Kyle; Defendant (former Executor and Trustee): Christopher James Kyle; Defendant (corporate Defendant): 1537 Holdings Ltd.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
5 May 2017
Procedural Posture
Estate and Trust Litigation / Costs Hearing (reasons for Judgment on Costs)
Outcome
Court found plaintiff entitled to indemnity for legal costs and awarded special costs against Chris to be assessed, with alternative orders for double Party and Party (Scale B) costs if special costs are not appropriate; costs to be paid by Chris or out of funds ordinarily available to him from the Estate.
Legal Topics
Breach of Trust, Executor Removal, Misappropriation of Trust Assets, Resulting Trust, Special Costs, Double Costs (party and Party)
Source Language
English
Wills and Estates Trusts Civil Procedure Fiduciary Duty Breach of Trust Executor Removal Misappropriation of Trust Assets Resulting Trust +2 more

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Parties

Robert William Kyle

Plaintiff (alternate Executor and Trustee of the Estate of John (jack) Henderson Kyle Jr.)

Christopher James Kyle

Defendant (former Executor and Trustee)

1537 Holdings Ltd.

Defendant (corporate Defendant)

Procedural Posture

Estate and Trust Litigation / Costs Hearing (reasons for Judgment on Costs)

Legal Issues

  1. 1 Whether plaintiff is entitled to indemnity (full) for legal costs from defendants or estate
  2. 2 Whether special costs should be awarded personally against the executor (Chris) for pre‑ and intra‑litigation misconduct
  3. 3 Whether double party and party costs are available or appropriate as alternative remedy

Ratio Decidendi

The plaintiff, acting as alternate executor, is entitled to indemnity for legal costs because he recovered misappropriated trust assets for all beneficiaries; special costs are justified against the breaching executor for reprehensible conduct before and during litigation and will be assessed against Chris, with an alternative award of double Party and Party (Scale B) costs if special costs are not upheld; double costs are not available in conjunction with special costs.

Court Disposition

Court found plaintiff entitled to indemnity for legal costs and awarded special costs against Chris to be assessed, with alternative orders for double Party and Party (Scale B) costs if special costs are not appropriate; costs to be paid by Chris or out of funds ordinarily available to him from the Estate.

Orders

  • Plaintiff to be fully indemnified for legal costs and expenses payable by the Defendants either directly or out of funds ordinarily available to Chris from the Estate
  • Special Costs awarded against Christopher James Kyle to be assessed by the Registrar and payable by Chris directly to Robert within 60 days after assessment or agreement