Stewart's Trustees Petitioners [1913] ScotLR 430 (07 February 1913)

Stewart's Trustees Petitioners [1913] ScotLR 430 (07 February 1913)

The Court refused the petition because appointing a Canadian incorporated company as trustee would place the trust administration beyond the effective control and jurisdiction of the Scottish Court, especially given the existence of minor beneficiaries and the dual nature of the trusts (one Scottish, one English). The Court also found it inappropriate to transfer the administration of an English settlement trust to Canada, potentially interfering with the jurisdiction of the English courts. The lack of precedent for appointing a corporate trustee in Scotland and the inability to enforce undertakings against a foreign company were decisive.

Citation
[1913] ScotLR 430
Parties
Petitioners: Stewart's Trustees
Jurisdiction
Scotland
Judgment Date
07 February 1913
Procedural Posture
Petition / First Instance Court of Session Inner House, First Division
Outcome
Petition refused
Legal Topics
Appointment of Trustees, Resignation of Trustees, Jurisdiction Over Trusts, Cross Border Trust Administration
Trusts and Estates Private International Law Appointment of Trustees Resignation of Trustees Jurisdiction Over Trusts Cross Border Trust Administration

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Parties

Stewart's Trustees

Petitioners

Procedural Posture

Petition / First Instance Court of Session Inner House, First Division

Legal Issues

  1. 1 Whether the Scottish Court can appoint a Canadian incorporated company as trustee of a Scottish marriage contract trust and an English form settlement trust
  2. 2 Whether the trust funds can be transferred to Canada and administered by a foreign corporate trustee
  3. 3 Whether the Scottish Court has jurisdiction to alter the administration of an English settlement trust

Ratio Decidendi

The Court refused the petition because appointing a Canadian incorporated company as trustee would place the trust administration beyond the effective control and jurisdiction of the Scottish Court, especially given the existence of minor beneficiaries and the dual nature of the trusts (one Scottish, one English). The Court also found it inappropriate to transfer the administration of an English settlement trust to Canada, potentially interfering with the jurisdiction of the English courts. The lack of precedent for appointing a corporate trustee in Scotland and the inability to enforce undertakings against a foreign company were decisive.

Court Disposition

Petition refused

Orders

  • Prayer of the petition refused; no appointment of Canadian corporate trustee; no transfer of trust funds to Canada; existing trustees remain in office.