Royal National Lifeboat Institution & Ors v Headley & Anor [2016] EWHC 1948 (Ch) (28 July 2016)

Royal National Lifeboat Institution & Ors v Headley & Anor [2016] EWHC 1948 (Ch) (28 July 2016)

Remaindermen are entitled to accounts and information relating to trust capital, investments, and capital expenses, but not to income accounts or income-related expenses while a life interest subsists. Trustees who unreasonably fail to account and do not engage with beneficiaries or proceedings may be denied...

Source-derived case information.

Citation
[2016] EWHC 1948 (Ch)
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
Part 8 Claim Under CPR / Judgment After Hearing on Application for Accounts and Removal of Party
Outcome
Claim allowed in part; application to remove First Defendant granted; orders for disclosure and costs made against Second Defendant.
Legal Topics
Trustee Duties, Beneficiary Rights to Information, Disclosure of Trust Accounts, Costs in Trust Litigation
Trusts and Estates Charity Law Trustee Duties Beneficiary Rights to Information Disclosure of Trust Accounts 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

Part 8 Claim Under CPR / Judgment After Hearing on Application for Accounts and Removal of Party

Legal Issues

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

Ratio Decidendi

Remaindermen are entitled to accounts and information relating to trust capital, investments, and capital expenses, but not to income accounts or income-related expenses while a life interest subsists. Trustees who unreasonably fail to account and do not engage with beneficiaries or proceedings may be denied indemnity from the trust fund for costs incurred.

Court Disposition

Claim allowed in part; application to remove First Defendant granted; orders for disclosure and costs made against Second Defendant.

Orders

  • First Defendant removed as party; claim proceeds against Second Defendant only.
  • Second Defendant to provide claimants with accounts of capital, lists of investments, and breakdown of capital expenses (with supporting documents) since 1 October 2007.