Royal National Lifeboat Institution & Ors v Headley & Anor

Royal National Lifeboat Institution & Ors v Headley & Anor

Remainder beneficiaries are entitled to accounts and information relating to trust capital and capital expenses, but not to income accounts or income expenses prior to their interests falling into possession. Trustees who unreasonably fail to account or participate in proceedings may be denied indemnity from the trust fund for costs incurred.

Parties
Claimant: The Royal National Lifeboat Institution; Claimant: The British Red Cross Society; Claimant: The Guide Dogs for the Blind Association; Claimant: Royal Society for the Prevention of Cruelty to Animals; Claimant: Leonard Cheshire Disability; Defendant: John G A Headley; Defendant: Kevin A McCole
Jurisdiction
England and Wales
Judgment Date
28 July 2016
Procedural Posture
Trusts—beneficiary Application for Accounts and Information / Judgment After Hearing of Application and Claim
Outcome
Application and claim allowed in part; costs awarded to claimants; trustee denied indemnity for costs.
Legal Topics
Beneficiaries' Rights to Accounts, Disclosure of Trust Information, Trustee Duties, Costs in Trust Litigation
Trusts and Estates Beneficiaries' Rights to Accounts Disclosure of Trust Information Trustee Duties Costs in Trust Litigation

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Parties

The Royal National Lifeboat Institution

Claimant

The British Red Cross Society

Claimant

The Guide Dogs for the Blind Association

Claimant

Royal Society for the Prevention of Cruelty to Animals

Claimant

Leonard Cheshire Disability

Claimant

John G A Headley

Defendant

Kevin A McCole

Defendant

Procedural Posture

Trusts—beneficiary Application for Accounts and Information / Judgment After Hearing of Application and Claim

Legal Issues

  1. 1 Are remainder beneficiaries entitled to trust accounts and information prior to their interests falling into possession?
  2. 2 What categories of information are remainder beneficiaries entitled to?
  3. 3 Should the trustee be denied indemnity from the trust fund for costs due to unreasonable conduct?

Ratio Decidendi

Remainder beneficiaries are entitled to accounts and information relating to trust capital and capital expenses, but not to income accounts or income expenses prior to their interests falling into possession. Trustees who unreasonably fail to account or participate in proceedings may be denied indemnity from the trust fund for costs incurred.

Court Disposition

Application and claim allowed in part; costs awarded to claimants; trustee denied indemnity for costs.

Orders

  • First Defendant removed from proceedings; claim proceeds against Second Defendant only.
  • Second Defendant to provide claimants with accounts of capital, lists of investments, breakdown of trustees’ fees and expenditure (as charged to capital), supporting documents, confirmation of identity of present trustees and instruments of appointment/retirement, and confirmation of survival of life tenant, all...