Free Church of Scotland and Others v. Macknight's Trustees [1915] ScotLR 35 (22 October 1915)

Free Church of Scotland and Others v. Macknight's Trustees [1915] ScotLR 35 (22 October 1915)

Trustees were not personally liable for trust expenditures made in good faith and within their discretionary powers prior to the allocation order under the Churches (Scotland) Act 1905, nor for the period immediately after, given the legal uncertainty and absence of private beneficiary loss. The question of liability for failure to recover income tax required further specification of pleadings and was not determined on the present record.

Citation
[1915] ScotLR 35
Parties
Pursuer: Free Church of Scotland and Others; Defender: Hugh Martin and others (Macknight's Trustees); Defender: Sutherland Mackay (Trustee)
Jurisdiction
Scotland
Judgment Date
22 October 1915
Procedural Posture
Action of Count, Reckoning, and Payment / Reclaiming Motion (appeal) From Lord Ordinary's Interlocutor
Outcome
Objection to trustees' accounts regarding Bathgate Mission repelled; interlocutor of Lord Ordinary recalled; issue of income tax left open for amendment of pleadings.
Legal Topics
Charitable Bequest, Trust Administration, Personal Liability of Trustees, Income Tax and Charitable Trusts, Breach of Trust
Trusts and Estates Charities Law Religious Law Charitable Bequest Trust Administration Personal Liability of Trustees Income Tax and Charitable Trusts Breach of Trust

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Parties

Free Church of Scotland and Others

Pursuer

Hugh Martin and others (Macknight's Trustees)

Defender

Sutherland Mackay (Trustee)

Defender

Procedural Posture

Action of Count, Reckoning, and Payment / Reclaiming Motion (appeal) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether trustees were personally liable to repay trust funds expended independently of the Church after allocation orders under the Churches (Scotland) Act 1905.
  2. 2 Whether trustees were liable for failure to recover income tax which was allegedly recoverable for the trust.

Ratio Decidendi

Trustees were not personally liable for trust expenditures made in good faith and within their discretionary powers prior to the allocation order under the Churches (Scotland) Act 1905, nor for the period immediately after, given the legal uncertainty and absence of private beneficiary loss. The question of liability for failure to recover income tax required further specification of pleadings and was not determined on the present record.

Court Disposition

Objection to trustees' accounts regarding Bathgate Mission repelled; interlocutor of Lord Ordinary recalled; issue of income tax left open for amendment of pleadings.

Orders

  • Objection to defenders' accounts relating to Bathgate Mission repelled.
  • Defenders allowed to amend record regarding income tax; pursuers allowed to answer.