Armitage v Nurse & Ors [1997] EWCA Civ 1279 (19 March 1997)

Armitage v Nurse & Ors [1997] EWCA Civ 1279 (19 March 1997)

A trustee exemption clause in the widest terms, such as Clause 15, is valid in English law and exempts trustees from liability for all breaches of trust except for their own actual fraud or dishonesty. Such clauses are not void for repugnancy or public policy. The pleadings did not allege dishonesty, so the trustees are absolved from liability by Clause 15.

Citation
[1997] EWCA Civ 1279
Parties
Appellant/plaintiff: Paula Rachel Armitage; Respondent/defendant: Richard Nurse; Respondent/defendant (personal Representative of Arthur George Stammers, Deceased): Dudley Thomas Bowman Stammers; Respondent/defendant (personal Representative of Arthur George Stammers, Deceased): Brian Arthur Stammers; Respondent/defendant (personal Representative of Keith Flatman, Deceased): Margaret Lambert McLeod Flatman; Respondent/defendant: Jeffrey Reginald Wright
Jurisdiction
England and Wales
Judgment Date
19 March 1997
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (chancery Division)
Outcome
Appeal and cross-appeal dismissed; part of the costs order set aside and substituted as indicated.
Legal Topics
Trustee Exemption Clauses, Breach of Trust, Limitation of Actions, Trustee Duties, Public Policy in Trust Law
Trusts and Estates Equity Trustee Exemption Clauses Breach of Trust Limitation of Actions Trustee Duties Public Policy in Trust Law

Case Brief

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Parties

Paula Rachel Armitage

Appellant/plaintiff

Richard Nurse

Respondent/defendant

Dudley Thomas Bowman Stammers

Respondent/defendant (personal Representative of Arthur George Stammers, Deceased)

Brian Arthur Stammers

Respondent/defendant (personal Representative of Arthur George Stammers, Deceased)

Margaret Lambert McLeod Flatman

Respondent/defendant (personal Representative of Keith Flatman, Deceased)

Jeffrey Reginald Wright

Respondent/defendant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (chancery Division)

Legal Issues

  1. 1 Whether Clause 15 of the Settlement validly exempts trustees from liability for all breaches of trust except actual fraud/dishonesty
  2. 2 Whether Clause 9(a) of the Settlement provides a similar exemption
  3. 3 Whether claims for breaches of trust before 15 June 1987 are statute-barred

Ratio Decidendi

A trustee exemption clause in the widest terms, such as Clause 15, is valid in English law and exempts trustees from liability for all breaches of trust except for their own actual fraud or dishonesty. Such clauses are not void for repugnancy or public policy. The pleadings did not allege dishonesty, so the trustees are absolved from liability by Clause 15.

Court Disposition

Appeal and cross-appeal dismissed; part of the costs order set aside and substituted as indicated.

Orders

  • Respondents to receive 80% of costs in the Court of Appeal.
  • Respondents' right to recoup costs out of the trust fund restored, conditional on outcome of any further proceedings.