Southgate & Anor v Sutton & Ors [2011] EWCA Civ 637 (26 May 2011)

Southgate & Anor v Sutton & Ors [2011] EWCA Civ 637 (26 May 2011)

The court has jurisdiction under s.57(1) Trustee Act 1925 to confer powers of appropriation and partition on trustees where the impact on beneficial interests is incidental and the transaction is expedient for the trust as a whole. The proposed advancement, as restructured, falls within s.32 and is a valid exercise of the trustees' powers.

Citation
[2011] EWCA Civ 637
Parties
Appellants: Christopher Southgate & Anor; Respondents: Peter Sutton & Ors
Jurisdiction
England and Wales
Judgment Date
26 May 2011
Procedural Posture
Appeal / Court of Appeal (civil Division) on Appeal From High Court (chancery Division)
Outcome
Appeal allowed
Legal Topics
Trustee Powers, Appropriation and Partition of Trust Property, Power of Advancement, Variation of Trusts, Jurisdiction Under Trustee Act 1925 S.57 and S.32
Trusts and Estates Equity Trustee Powers Appropriation and Partition of Trust Property Power of Advancement Variation of Trusts Jurisdiction Under Trustee Act 1925 S.57 and S.32

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Parties

Christopher Southgate & Anor

Appellants

Peter Sutton & Ors

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the court has jurisdiction under s.57(1) Trustee Act 1925 to confer powers of appropriation and partition on trustees where the effect on beneficial interests is incidental
  2. 2 Whether the proposed advancement by trustees falls within s.32 Trustee Act 1925

Ratio Decidendi

The court has jurisdiction under s.57(1) Trustee Act 1925 to confer powers of appropriation and partition on trustees where the impact on beneficial interests is incidental and the transaction is expedient for the trust as a whole. The proposed advancement, as restructured, falls within s.32 and is a valid exercise of the trustees' powers.

Court Disposition

Appeal allowed

Orders

  • Order conferring powers of appropriation and partition on trustees under s.57(1) Trustee Act 1925
  • Order approving restructured advancement under s.32 Trustee Act 1925 as set out in the draft resolution