Pullan v Wilson & Ors [2014] EWHC 126 (Ch) (28 January 2014)

Pullan v Wilson & Ors [2014] EWHC 126 (Ch) (28 January 2014)

The court held that the first defendant's hourly rates (£400 for himself, £250 for assistants) were excessive given the nature of the work and the number of hours charged. Proper and reasonable rates were determined to be £330 per hour for the first defendant and £165 per hour for his assistants, with a 7.5% discount for excessive administration/non-productive time. Time spent on company matters should not have been charged to the trusts without express agreement. The claimant was not precluded from challenging the fees. The first defendant must account for and repay the excess fees charged above the reasonable remuneration as determined by the court.

Citation
[2014] EWHC 126 (Ch)
Parties
Claimant: Alistair Mark Pullan; First Defendant: David Wilson; Second Defendant: John Riches; Third Defendant: Christopher John Heselton Adams
Jurisdiction
England and Wales
Judgment Date
28 January 2014
Procedural Posture
Part 8 Claim (chancery Division) / Judgment After Trial
Outcome
Claim allowed in part
Legal Topics
Trustee Remuneration, Reasonableness of Professional Fees, Account and Inquiry, Charging Clauses, Beneficiary Challenge to Trustee Fees
Trusts Equity Professional Negligence Trustee Remuneration Reasonableness of Professional Fees Account and Inquiry Charging Clauses Beneficiary Challenge to Trustee Fees

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Parties

Alistair Mark Pullan

Claimant

David Wilson

First Defendant

John Riches

Second Defendant

Christopher John Heselton Adams

Third Defendant

Procedural Posture

Part 8 Claim (chancery Division) / Judgment After Trial

Legal Issues

  1. 1 What is the proper and reasonable remuneration for a professional trustee under the relevant trust instruments and Trustee Act 2000?
  2. 2 Are the fees charged by the first defendant excessive or unreasonable?
  3. 3 Should time spent on company matters be charged to the trusts?

Ratio Decidendi

The court held that the first defendant's hourly rates (£400 for himself, £250 for assistants) were excessive given the nature of the work and the number of hours charged. Proper and reasonable rates were determined to be £330 per hour for the first defendant and £165 per hour for his assistants, with a 7.5% discount for excessive administration/non-productive time. Time spent on company matters should not have been charged to the trusts without express agreement. The claimant was not precluded from challenging the fees. The first defendant must account for and repay the excess fees charged above the reasonable remuneration as determined by the court.

Court Disposition

Claim allowed in part

Orders

  • Account to be taken to determine the amount by which the first defendant's fees exceeded proper and reasonable remuneration as determined by the court.
  • First defendant to repay to the Pullan family trusts the excess fees found due, together with interest as determined by the court.