Sleighs v. Sleigh's Factor [1908] ScotLR 826 (09 July 1908)

Sleighs v. Sleigh's Factor [1908] ScotLR 826 (09 July 1908)

A judicial factor is not bound to account to the trust estate for fees and commissions received by his firm for legal work done in connection with the trust, where such fees are paid by third parties (borrowers, guardians, beneficiaries) and not from the trust estate. The prohibition on profit from office and conflict of interest does not extend to such circumstances, provided no trust funds are used and no improper charges are made against the estate.

Citation
[1908] ScotLR 826
Parties
Objectors/beneficiaries: Edgar Hume Sleigh, Charles Hope Sleigh, and Marie Edgar Sleigh; Respondent/judicial Factor: Alexander Yeaman, W. S., Judicial Factor
Jurisdiction
Scotland
Judgment Date
09 July 1908
Procedural Posture
Trust/objections to Judicial Factor's Accounts / Appeal (reclaiming Motion) From Lord Ordinary to Inner House
Outcome
Objections 2, 3, 4, and 5 repelled; Lord Ordinary's interlocutor recalled in so far as it sustained these objections; case remitted for further procedure; petitioners found liable in expenses since the date of the interlocutor reclaimed against.
Legal Topics
Judicial Factor's Remuneration, Conflict of Interest, Trustee's Profits, Agent and Client Fees
Trust Law Fiduciary Law Judicial Factor's Remuneration Conflict of Interest Trustee's Profits Agent and Client Fees

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Parties

Edgar Hume Sleigh, Charles Hope Sleigh, and Marie Edgar Sleigh

Objectors/beneficiaries

Alexander Yeaman, W. S., Judicial Factor

Respondent/judicial Factor

Procedural Posture

Trust/objections to Judicial Factor's Accounts / Appeal (reclaiming Motion) From Lord Ordinary to Inner House

Legal Issues

  1. 1 Is a judicial factor required to account to the trust estate for fees and commissions received by his own firm for legal work done in connection with the trust, where such fees were paid by third parties (borrowers, guardians, beneficiaries) and not from the trust estate?
  2. 2 Does acting through his own firm in such circumstances constitute an impermissible conflict of interest or profit from office?

Ratio Decidendi

A judicial factor is not bound to account to the trust estate for fees and commissions received by his firm for legal work done in connection with the trust, where such fees are paid by third parties (borrowers, guardians, beneficiaries) and not from the trust estate. The prohibition on profit from office and conflict of interest does not extend to such circumstances, provided no trust funds are used and no improper charges are made against the estate.

Court Disposition

Objections 2, 3, 4, and 5 repelled; Lord Ordinary's interlocutor recalled in so far as it sustained these objections; case remitted for further procedure; petitioners found liable in expenses since the date of the interlocutor reclaimed against.

Orders

  • Recall the interlocutor of 12th February 1908 in so far as it sustains objections 2, 3, 4, and 5.
  • Repel objections 2, 3, 4, and 5.