Sheffield v Sheffield & Ors

Sheffield v Sheffield & Ors

Defaulting trustees must pay the costs of accounts and inquiries ordered as a result of breach of trust, regardless of whether sums are found payable, because the beneficiary's primary right is to information and accurate accounting. Offers made without full disclosure do not justify depriving the beneficiary of costs. Partial success and conduct may justify proportionate discounts, but the claimant remains the successful party overall.

Parties
Claimant: John David Sheffield; First Defendant (as Executor of John Vincent Sheffield, as Trustee of the 1968 Settlement, and in Personal Capacity): John Julian Lionel George Sheffield; First Defendant (as Executor of John Vincent Sheffield): Lionel Julian Sheffield; First Defendant (as Executor of John Vincent Sheffield, as Trustee of the 1968 Settlement): Simon Robert Alexander Sheffield; Third Defendant (as Trustee of the 1968 Settlement): Fergus Hugh Sterling Graham; Third Defendant (as Trustee of the 1968 Settlement): Nicola Elizabeth Anne Graham; Third Defendant (as Trustee of the 1968 Settlement): John Frank Ratcliffe
Jurisdiction
England and Wales
Judgment Date
13 September 2018
Procedural Posture
Civil / Post Trial Costs Determination
Outcome
Costs order granted in favour of claimant, subject to proportionate discounts.
Legal Topics
Breach of Trust, Accounts and Inquiries, Costs Orders, Trustee Duties
Trusts Civil Procedure Breach of Trust Accounts and Inquiries Costs Orders Trustee Duties

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Parties

John David Sheffield

Claimant

John Julian Lionel George Sheffield

First Defendant (as Executor of John Vincent Sheffield, as Trustee of the 1968 Settlement, and in Personal Capacity)

Lionel Julian Sheffield

First Defendant (as Executor of John Vincent Sheffield)

Simon Robert Alexander Sheffield

First Defendant (as Executor of John Vincent Sheffield, as Trustee of the 1968 Settlement)

Fergus Hugh Sterling Graham

Third Defendant (as Trustee of the 1968 Settlement)

Nicola Elizabeth Anne Graham

Third Defendant (as Trustee of the 1968 Settlement)

John Frank Ratcliffe

Third Defendant (as Trustee of the 1968 Settlement)

Procedural Posture

Civil / Post Trial Costs Determination

Legal Issues

  1. 1 Who should bear the costs of accounts and inquiries ordered following breach of trust and settlement?
  2. 2 Does partial success or offers of settlement affect costs liability?
  3. 3 Are special principles applicable to costs in trust litigation?

Ratio Decidendi

Defaulting trustees must pay the costs of accounts and inquiries ordered as a result of breach of trust, regardless of whether sums are found payable, because the beneficiary's primary right is to information and accurate accounting. Offers made without full disclosure do not justify depriving the beneficiary of costs. Partial success and conduct may justify proportionate discounts, but the claimant remains the successful party overall.

Court Disposition

Costs order granted in favour of claimant, subject to proportionate discounts.

Orders

  • The executors shall pay 90% of the claimant’s costs of the accounts and inquiries pursuant to §§2 and 4 of the Main Order, to be assessed if not agreed.
  • Julian personally shall pay 97% of the claimant’s costs of the accounts and inquiries pursuant to §§5 to 7 of the Main Order, to be assessed if not agreed.