Clarkson v Clarkson & Ors [1994] EWCA Civ 25 (26 April 1994)

Clarkson v Clarkson & Ors [1994] EWCA Civ 25 (26 April 1994)

The appointment of the trust fund to Mrs. Clarkson was not a transaction at an undervalue by the bankrupt trustees within the meaning of section 339 of the Insolvency Act 1986, as the gift was made by Mr. Clarkson when the trust was created, and the power of appointment was fiduciary and not part of the bankrupts' estates.

Citation
[1994] EWCA Civ 25
Parties
Company: Property Enhancement Development Limited; Settlor/trustee: David Clarkson; Trustee/beneficiary/bankrupt: Peter Dawber; Trustee/beneficiary/bankrupt: Peter Smith; Appointee/beneficiary: Lynda Clarkson; Appellants: Trustees in bankruptcy of Mr. Dawber and Mr. Smith
Jurisdiction
England and Wales
Judgment Date
26 April 1994
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Transaction at an Undervalue, Powers of Appointment, Bankruptcy Estate, Trustee Powers
Insolvency Law Trusts Law Transaction at an Undervalue Powers of Appointment Bankruptcy Estate Trustee Powers

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Parties

Property Enhancement Development Limited

Company

David Clarkson

Settlor/trustee

Peter Dawber

Trustee/beneficiary/bankrupt

Peter Smith

Trustee/beneficiary/bankrupt

Lynda Clarkson

Appointee/beneficiary

Trustees in bankruptcy of Mr. Dawber and Mr. Smith

Appellants

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the appointment of trust property to Mrs. Clarkson was a transaction at an undervalue under section 339 of the Insolvency Act 1986
  2. 2 Whether the power of appointment held by bankrupt trustees formed part of their bankruptcy estate

Ratio Decidendi

The appointment of the trust fund to Mrs. Clarkson was not a transaction at an undervalue by the bankrupt trustees within the meaning of section 339 of the Insolvency Act 1986, as the gift was made by Mr. Clarkson when the trust was created, and the power of appointment was fiduciary and not part of the bankrupts' estates.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs. Legal aid taxation.