Barnsley & Ors v Noble (Rev1)

Barnsley & Ors v Noble (Rev1)

The exoneration clause in the will applies to protect the trustee from personal liability for equitable compensation for breach of fiduciary duty, including breach of the self-dealing rule, unless the trustee is guilty of conscious and wilful misconduct or reckless indifference. Philip was not guilty of such misconduct; therefore, he is exonerated from liability.

Parties
Appellant: Barnsley & Ors; Respondent: Noble
Jurisdiction
England and Wales
Judgment Date
02 August 2016
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Trustee Exoneration Clauses, Self Dealing Rule, Breach of Fiduciary Duty, Equitable Compensation, Interpretation of Wills
Trusts and Estates Equity Fiduciary Law Trustee Exoneration Clauses Self Dealing Rule Breach of Fiduciary Duty Equitable Compensation Interpretation of Wills

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Parties

Barnsley & Ors

Appellant

Noble

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Does the exoneration clause in the will protect the trustee from personal liability for equitable compensation for breach of fiduciary duty, including breach of the self-dealing rule?
  2. 2 What is the proper interpretation of 'wilful and individual fraud or wrongdoing' in the exoneration clause?
  3. 3 Does acting without conscious reference to a specific power in the will preclude reliance on the exoneration clause?

Ratio Decidendi

The exoneration clause in the will applies to protect the trustee from personal liability for equitable compensation for breach of fiduciary duty, including breach of the self-dealing rule, unless the trustee is guilty of conscious and wilful misconduct or reckless indifference. Philip was not guilty of such misconduct; therefore, he is exonerated from liability.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; judgment of Nugee J affirmed.