Davies & Anor v Sharples & Anor

Davies & Anor v Sharples & Anor

Claims for overpayments of income and capital made in breach of trust by trustees are governed by s.21(3) of the Limitation Act 1980 and are subject to a six-year limitation period from the date of breach, except where the trustee received trust property for their own use, in which case no limitation applies under s.21(1)(b). Restitutionary claims by beneficiaries against recipients of mistaken overpayments are also statute barred unless s.32(1)(c) applies, postponing limitation until discovery of the mistake. In this case, the mistake was not discoverable until 2002, so the claims are not statute barred.

Parties
Claimant: John Howard Davies; Claimant: Peter Kenyon Davies; Defendant: John Miles Sharples; Defendant: Penelope Helen Green
Jurisdiction
England and Wales
Judgment Date
09 February 2006
Procedural Posture
Civil / Ruling on Preliminary Issue Regarding Limitation and Breach of Trust
Outcome
Claims for overpayments of income and capital are not statute barred due to postponement under s.32(1)(c) of the Limitation Act 1980.
Legal Topics
Breach of Trust, Restitution, Limitation Periods, Mistaken Payments, Deliberate Concealment
Trusts and Estates Limitation Law Breach of Trust Restitution Limitation Periods Mistaken Payments Deliberate Concealment

Case Brief

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Parties

John Howard Davies

Claimant

Peter Kenyon Davies

Claimant

John Miles Sharples

Defendant

Penelope Helen Green

Defendant

Procedural Posture

Civil / Ruling on Preliminary Issue Regarding Limitation and Breach of Trust

Legal Issues

  1. 1 Whether claims for overpayments of income and capital are statute barred under the Limitation Act 1980
  2. 2 Whether breach of trust claims against trustees are subject to limitation
  3. 3 Whether restitutionary claims by beneficiaries are governed by s.21(3) or s.22(a) of the Limitation Act 1980

Ratio Decidendi

Claims for overpayments of income and capital made in breach of trust by trustees are governed by s.21(3) of the Limitation Act 1980 and are subject to a six-year limitation period from the date of breach, except where the trustee received trust property for their own use, in which case no limitation applies under s.21(1)(b). Restitutionary claims by beneficiaries against recipients of mistaken overpayments are also statute barred unless s.32(1)(c) applies, postponing limitation until discovery of the mistake. In this case, the mistake was not discoverable until 2002, so the claims are not statute barred.

Court Disposition

Claims for overpayments of income and capital are not statute barred due to postponement under s.32(1)(c) of the Limitation Act 1980.

Orders

  • Personal claims of the Cunliffe beneficiaries and of the second Claimant are not statute barred.
  • Claims for breach of trust against John and Jack Sharples for overpayments received for their own use are not subject to limitation.