Bronson v. Hewitt

Bronson v. Hewitt

Trustee Howard breached the BNT by effecting the Big Nine share sale without properly recognizing or affording Harold his presumptive co-trustee rights; sale was improvident and caused loss; Eugene knowingly assisted in the breach; Mason/BHT did not meet threshold for knowing assistance; trustee cannot condition distributions on releases to pay some beneficiaries and not others; BNT beneficially held two-thirds of GRO shares which were effectively distributed by trustee's Distribution Letter; remedies include damages, accounting and transfer orders.

Citation
2010 BCSC 169
Parties
Plaintiff: Thomas E. Bronson; Plaintiff: J. Tom Bronson; Plaintiff: Lee B. Lewis; Plaintiff: Virginia L. Shaffer; Plaintiff: H. Davis Lewis, Jr.; Plaintiff: Harold D. Lewis, Sr.; Defendant: Howard H. Hewitt; Defendant: A. Eugene Lewis; Defendant: Jennifer Lewis Browning; Defendant: Julie Anne Lewis; Defendant: William David Tompkins; Defendant: Graham River Outfitters Ltd.; Defendant: Margaret H. Mason; Defendant: Bull, Housser & Tupper; Defendant: Bull, Housser & Tupper LLP; Third Party: Thomas E. Bronson
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
8 February 2010
Procedural Posture
Civil Trust and Fiduciary Proceedings / Trial Judgment (reasons for Judgment)
Outcome
Judgment for plaintiffs in part: trustee breached trust; damages awarded; various equitable remedies ordered; some claims dismissed
Legal Topics
Breach of Trust, Knowing Assistance, Removal of Trustee, Trust Interpretation, Damages for Breach of Trust, Trust Distributions, Solicitor Conduct and Negligence
Source Language
English
Trusts Equity Fiduciary Duty Property Law Corporate Law Breach of Trust Knowing Assistance Removal of Trustee +4 more

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Parties

Thomas E. Bronson

Plaintiff

J. Tom Bronson

Plaintiff

Lee B. Lewis

Plaintiff

Virginia L. Shaffer

Plaintiff

H. Davis Lewis, Jr.

Plaintiff

Harold D. Lewis, Sr.

Plaintiff

Howard H. Hewitt

Defendant

A. Eugene Lewis

Defendant

Jennifer Lewis Browning

Defendant

Julie Anne Lewis

Defendant

William David Tompkins

Defendant

Graham River Outfitters Ltd.

Defendant

Margaret H. Mason

Defendant

Bull, Housser & Tupper

Defendant

Bull, Housser & Tupper LLP

Defendant

Thomas E. Bronson

Third Party

Procedural Posture

Civil Trust and Fiduciary Proceedings / Trial Judgment (reasons for Judgment)

Legal Issues

  1. 1 Whether trustee had authority to sell BNT's Big Nine shares
  2. 2 Whether trustee validly became sole trustee or Harold was co-trustee
  3. 3 Whether trustee and others knowingly assisted in breach of trust

Ratio Decidendi

Trustee Howard breached the BNT by effecting the Big Nine share sale without properly recognizing or affording Harold his presumptive co-trustee rights; sale was improvident and caused loss; Eugene knowingly assisted in the breach; Mason/BHT did not meet threshold for knowing assistance; trustee cannot condition distributions on releases to pay some beneficiaries and not others; BNT beneficially held two-thirds of GRO shares which were effectively distributed by trustee's Distribution Letter; remedies include damages, accounting and transfer orders.

Court Disposition

Judgment for plaintiffs in part: trustee breached trust; damages awarded; various equitable remedies ordered; some claims dismissed

Orders

  • Howard and A. Eugene Lewis are jointly and severally liable for assessed trust damages of CAD 350000 with pre-judgment interest from 2006-01-01 payable to beneficiaries in proportion to their BNT interests
  • Howard to pay USD 66,000 to each of Lee, Virginia and Davis and USD 198,000 to Tommy with pre-judgment interest from 2004-03-03 (amounts previously paid only to Jennifer and Julie must be matched for other beneficiaries)