The Moness Country Club & Ors v First National Trustee Company Ltd [2013] ScotCS CSOH_188 (10 December 2013)

The Moness Country Club & Ors v First National Trustee Company Ltd [2013] ScotCS CSOH_188 (10 December 2013)

Clause 15.1 of the 1993 Deed of Trust empowers the Club to terminate the appointment of the Trustee by giving notice, allowing for removal and replacement of the Trustee without terminating the trust itself. The wording, context, and commercial nature of the trust support this interpretation, and the Club's Constitution is consistent with such a power.

Citation
[2013] ScotCS CSOH_188
Parties
Pursuers: The Moness Country Club and Terence Louis Vose, Isobel McNeill, Charles Taylor, Joy Boyle and Julie Kilpatrick; Defenders: First National Trustee Company Limited
Jurisdiction
Scotland
Judgment Date
10 December 2013
Procedural Posture
Civil / Procedure Roll Hearing (preliminary Legal Issue)
Outcome
Declarator granted in favour of the pursuers; counterclaim dismissed, subject to clarification regarding any sums due for services prior to effective termination date.
Legal Topics
Interpretation of Trust Deeds, Powers of Removal and Resignation of Trustees, Administrative Trusts, Club Constitutions and Property Holding
Trusts and Estates Property Law Contract Law Interpretation of Trust Deeds Powers of Removal and Resignation of Trustees Administrative Trusts Club Constitutions and Property Holding

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Parties

The Moness Country Club and Terence Louis Vose, Isobel McNeill, Charles Taylor, Joy Boyle and Julie Kilpatrick

Pursuers

First National Trustee Company Limited

Defenders

Procedural Posture

Civil / Procedure Roll Hearing (preliminary Legal Issue)

Legal Issues

  1. 1 Whether the pursuers had power under the 1993 Deed of Trust to terminate the appointment of the defender as Trustee by giving notice under clause 15.1.
  2. 2 Whether clause 15.1 of the Deed of Trust empowers the Club to remove the Trustee and appoint a new one.

Ratio Decidendi

Clause 15.1 of the 1993 Deed of Trust empowers the Club to terminate the appointment of the Trustee by giving notice, allowing for removal and replacement of the Trustee without terminating the trust itself. The wording, context, and commercial nature of the trust support this interpretation, and the Club's Constitution is consistent with such a power.

Court Disposition

Declarator granted in favour of the pursuers; counterclaim dismissed, subject to clarification regarding any sums due for services prior to effective termination date.

Orders

  • Declarator that the notice of 28 November 2008 validly terminated the defender's appointment as Trustee as of 31 May 2009.
  • Defender bound to comply with Committee's directions as to transfer of property under clause 15.2 of the 1993 Deed of Trust.