Duxbury's Settlement Trusts, Re [1994] EWCA Civ 21 (21 November 1994)

Duxbury's Settlement Trusts, Re [1994] EWCA Civ 21 (21 November 1994)

Section 5(1) of the Public Trustee Act 1906 overrides a trust instrument's requirement for more than one trustee for the exercise of discretions and discretionary powers, enabling the Public Trustee, if validly appointed as sole trustee, to exercise such powers notwithstanding contrary provisions in the trust instrument.

Citation
[1994] EWCA Civ 21
Parties
Appellant: Public Trustee; Former Trustee: Barclays Bank Trust Company Limited; Settlor: Mr. John Duxbury (deceased); Respondent: Representative defendant
Jurisdiction
England and Wales
Judgment Date
21 November 1994
Procedural Posture
Originating Summons (chancery Division) / Appeal
Outcome
appeal allowed
Legal Topics
Appointment of Trustees, Powers of Trustees, Construction of Trust Instruments, Statutory Interpretation
Trusts and Estates Equity Appointment of Trustees Powers of Trustees Construction of Trust Instruments Statutory Interpretation

Case Brief

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Parties

Public Trustee

Appellant

Barclays Bank Trust Company Limited

Former Trustee

Mr. John Duxbury (deceased)

Settlor

Representative defendant

Respondent

Procedural Posture

Originating Summons (chancery Division) / Appeal

Legal Issues

  1. 1 Whether the Public Trustee can be validly appointed as sole trustee under section 5(1) of the Public Trustee Act 1906 despite a trust instrument requiring more than one trustee for exercise of discretions and discretionary powers.
  2. 2 Whether the Public Trustee, if validly appointed as sole trustee, can exercise discretions and discretionary powers where the trust instrument prohibits such exercise by a sole trustee.

Ratio Decidendi

Section 5(1) of the Public Trustee Act 1906 overrides a trust instrument's requirement for more than one trustee for the exercise of discretions and discretionary powers, enabling the Public Trustee, if validly appointed as sole trustee, to exercise such powers notwithstanding contrary provisions in the trust instrument.

Court Disposition

appeal allowed

Orders

  • Order made by the judge in answer to question 3 discharged and replaced by an affirmative answer to question 3.
  • Costs of all parties to proceedings to be raised and retained or paid out of the capital of the funds not comprised in the 1963 settlement.