Nixon's Trustees v. Kane [1915] ScotLR 375 (20 February 1915)

Nixon's Trustees v. Kane [1915] ScotLR 375 (20 February 1915)

The daughters, by claiming legal rights and legacies contrary to the will, were put to their election and temporarily forfeited their rights as beneficiaries. However, upon making equitable compensation to the trust estate for the sums withdrawn, they were entitled to resume their rights as beneficiaries under the trust-disposition and settlement. The doctrine of equitable compensation applies, and forfeiture is not absolute where the fund is restored.

Citation
[1915] ScotLR 375
Parties
First Parties: Christopher Johnston Bisset and others, testamentary trustees of Mrs Hannah Smith or Kane or Nixon; Second Parties: Miss Catherine Maria Kane, Mrs Paulina Kane or Burns, Mrs Adriana Kane or Henderson, Mrs Esther Kane or Berman (daughters of the testatrix)
Jurisdiction
Scotland
Judgment Date
20 February 1915
Procedural Posture
Special Case (succession) / Inner House, Second Division, Court of Session (judgment)
Outcome
First question answered in the affirmative; second question answered in the negative. Daughters entitled to payment of the income of the trust estate after compensation.
Legal Topics
Election Under Will, Forfeiture of Testamentary Provision, Equitable Compensation, Approbate and Reprobate, Legal Rights of Beneficiaries
Succession Trusts and Estates Election Under Will Forfeiture of Testamentary Provision Equitable Compensation Approbate and Reprobate Legal Rights of Beneficiaries

Case Brief

Summary, issues, holding and outcome

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Parties

Christopher Johnston Bisset and others, testamentary trustees of Mrs Hannah Smith or Kane or Nixon

First Parties

Miss Catherine Maria Kane, Mrs Paulina Kane or Burns, Mrs Adriana Kane or Henderson, Mrs Esther Kane or Berman (daughters of the testatrix)

Second Parties

Procedural Posture

Special Case (succession) / Inner House, Second Division, Court of Session (judgment)

Legal Issues

  1. 1 Whether daughters who claimed legal rights and legacies due under their father's will, contrary to their mother's will, forfeited all interest as beneficiaries under their mother's trust-disposition and settlement
  2. 2 Whether equitable compensation applies such that, after making good the sums withdrawn, the daughters may resume their rights as beneficiaries

Ratio Decidendi

The daughters, by claiming legal rights and legacies contrary to the will, were put to their election and temporarily forfeited their rights as beneficiaries. However, upon making equitable compensation to the trust estate for the sums withdrawn, they were entitled to resume their rights as beneficiaries under the trust-disposition and settlement. The doctrine of equitable compensation applies, and forfeiture is not absolute where the fund is restored.

Court Disposition

First question answered in the affirmative; second question answered in the negative. Daughters entitled to payment of the income of the trust estate after compensation.

Orders

  • Second parties (daughters) are entitled to payment of the income of the trust estate, the sums paid to them having been made good to the trust estate.
  • No absolute forfeiture of interest under the trust-disposition and settlement.