Simpson and Others (Shaw's Trustees) and Others [1916] ScotLR 156 (20 December 1916)

Simpson and Others (Shaw's Trustees) and Others [1916] ScotLR 156 (20 December 1916)

Expenditure on new work, reconstruction, and painting necessitated by constructional alterations is to be charged wholly against capital (fiars), with liferenters liable for annual interest on the capital sum during their liferent. Expenditure on new fixtures or fittings in substitution for old, and painting not necessitated by constructional alterations, is to be charged wholly against revenue (liferenters), as these are for their benefit and do not permanently enhance the property for the fiars.

Citation
[1916] ScotLR 156
Parties
First Parties (trustees): George Simpson and others (Shaw's Trustees); Second Parties (liferenters): Mrs Jane Sinclair Shaw or Bruce and William Niven Shaw
Jurisdiction
Scotland
Judgment Date
20 December 1916
Procedural Posture
Special Case (trust Administration) / Inner House, Second Division, Court of Session
Outcome
Expenditure in articles 6, 7, and 9 chargeable wholly against capital; expenditure in articles 8 and 10 chargeable wholly against revenue.
Legal Topics
Allocation of Expenditure Between Capital and Revenue, Liferent and Fee, Trust Administration, Heritable Property Repairs
Trusts Succession Property Law Allocation of Expenditure Between Capital and Revenue Liferent and Fee Trust Administration Heritable Property Repairs

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Parties

George Simpson and others (Shaw's Trustees)

First Parties (trustees)

Mrs Jane Sinclair Shaw or Bruce and William Niven Shaw

Second Parties (liferenters)

Procedural Posture

Special Case (trust Administration) / Inner House, Second Division, Court of Session

Legal Issues

  1. 1 How should expenditure on trust heritable property be allocated between capital and revenue?
  2. 2 Which classes of expenditure are chargeable to liferenters and which to fiars?

Ratio Decidendi

Expenditure on new work, reconstruction, and painting necessitated by constructional alterations is to be charged wholly against capital (fiars), with liferenters liable for annual interest on the capital sum during their liferent. Expenditure on new fixtures or fittings in substitution for old, and painting not necessitated by constructional alterations, is to be charged wholly against revenue (liferenters), as these are for their benefit and do not permanently enhance the property for the fiars.

Court Disposition

Expenditure in articles 6, 7, and 9 chargeable wholly against capital; expenditure in articles 8 and 10 chargeable wholly against revenue.

Orders

  • Trustees to charge expenditure on new work, reconstruction, and painting necessitated by constructional alterations (articles 6, 7, 9) wholly against capital.
  • Trustees to charge expenditure on new fixtures or fittings in substitution for old, and painting not necessitated by constructional alterations (articles 8, 10) wholly against revenue.