Sheffield v Sheffield & Ors [2018] EWHC 2360 (Ch) (13 September 2018)

Sheffield v Sheffield & Ors [2018] EWHC 2360 (Ch) (13 September 2018)

The executors and Julian, as defaulting trustees, are to pay the claimant's costs of the accounts and inquiries, subject to proportionate discounts reflecting the claimant's failure to accept certain offers and conduct regarding the appointment of a new trustee. The general rule applies, as the claimant was substantially successful and entitled to full accounting and disclosure before evaluating offers. Issue-based costs orders are not generally appropriate in trust account proceedings unless justified by specific conduct or offers.

Citation
[2018] EWHC 2360 (Ch)
Parties
Claimant: John David Sheffield; First Defendant (executor), Second Defendant (personal), Third Defendant (trustee): John Julian Lionel George Sheffield; First Defendant (executor): Lionel Julian Sheffield; First Defendant (executor), Third Defendant (trustee): Simon Robert Alexander Sheffield; Third Defendant (trustee): Fergus Hugh Sterling Graham; Third Defendant (trustee): Nicola Elizabeth Anne Graham; Third Defendant (trustee): John Frank Ratcliffe
Jurisdiction
England and Wales
Judgment Date
13 September 2018
Procedural Posture
Breach of Trust Claim (chancery Division) / Post Trial, Costs Order Following Settlement of Relief
Outcome
Costs order: executors to pay 90% of claimant's costs of accounts and inquiries under §§2 and 4 of the Main Order; Julian personally to pay 97% of claimant's costs under §§5 to 7; both subject to detailed assessment if not agreed.
Legal Topics
Breach of Trust, Trust Accounts and Inquiries, Costs Orders, Trustee Duties, Settlement and Compromise
Trusts and Equity Civil Procedure Breach of Trust Trust Accounts and Inquiries Costs Orders Trustee Duties Settlement and Compromise

Case Brief

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Parties

John David Sheffield

Claimant

John Julian Lionel George Sheffield

First Defendant (executor), Second Defendant (personal), Third Defendant (trustee)

Lionel Julian Sheffield

First Defendant (executor)

Simon Robert Alexander Sheffield

First Defendant (executor), Third Defendant (trustee)

Fergus Hugh Sterling Graham

Third Defendant (trustee)

Nicola Elizabeth Anne Graham

Third Defendant (trustee)

John Frank Ratcliffe

Third Defendant (trustee)

Procedural Posture

Breach of Trust Claim (chancery Division) / Post Trial, Costs Order Following Settlement of Relief

Legal Issues

  1. 1 Who should bear the costs of accounts and inquiries following settlement in a breach of trust claim?
  2. 2 Does the general rule on costs apply where the claimant is substantially successful?
  3. 3 Are issue-based costs orders appropriate in trust account proceedings?

Ratio Decidendi

The executors and Julian, as defaulting trustees, are to pay the claimant's costs of the accounts and inquiries, subject to proportionate discounts reflecting the claimant's failure to accept certain offers and conduct regarding the appointment of a new trustee. The general rule applies, as the claimant was substantially successful and entitled to full accounting and disclosure before evaluating offers. Issue-based costs orders are not generally appropriate in trust account proceedings unless justified by specific conduct or offers.

Court Disposition

Costs order: executors to pay 90% of claimant's costs of accounts and inquiries under §§2 and 4 of the Main Order; Julian personally to pay 97% of claimant's costs under §§5 to 7; both subject to detailed assessment if not agreed.

Orders

  • Executors to pay 90% of claimant's costs of accounts and inquiries under §§2 and 4 of the Main Order.
  • Julian personally to pay 97% of claimant's costs of accounts and inquiries under §§5 to 7 of the Main Order.