Taylor (Browning's Trust's Judicial Factor). v [1905] ScotLR 42_825 (20 July 1905)

Taylor (Browning's Trust's Judicial Factor). v [1905] ScotLR 42_825 (20 July 1905)

The Court held that in exceptional circumstances, where immediate realisation of speculative assets would cause disproportionate loss to the estate, a judicial factor may be authorised to retain such assets, but only in hoc statu and not for a definite term, with ongoing reporting to the Accountant of Court. The retention is not to be for speculative purposes, and the assets should be realised as soon as it can be done without sacrificing the rest of the estate.

Citation
[1905] ScotLR 42_825
Parties
Applicant (judicial Factor): William John Taylor, C.A., Glasgow; Testamentary Trustee: Robert Parlane, Bonhill, Dumbartonshire; Testamentary Trustee: Joseph M. Taylor, LL.D., Writer, Glasgow; Beneficiary (liferenter): Mrs Browning; Beneficiary (fiar): Miss Robina Frazer Browning
Jurisdiction
Scotland
Judgment Date
20 July 1905
Procedural Posture
Application for Special Powers by Judicial Factor / Inner House Review and Final Order
Outcome
Application granted with conditions
Legal Topics
Judicial Factor Powers, Trustee Liability, Investment of Trust Assets, Retention of Speculative Assets
Trusts and Estates Judicial Administration Judicial Factor Powers Trustee Liability Investment of Trust Assets Retention of Speculative Assets

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Parties

William John Taylor, C.A., Glasgow

Applicant (judicial Factor)

Robert Parlane, Bonhill, Dumbartonshire

Testamentary Trustee

Joseph M. Taylor, LL.D., Writer, Glasgow

Testamentary Trustee

Mrs Browning

Beneficiary (liferenter)

Miss Robina Frazer Browning

Beneficiary (fiar)

Procedural Posture

Application for Special Powers by Judicial Factor / Inner House Review and Final Order

Legal Issues

  1. 1 Whether a judicial factor may retain shares with uncalled liability rather than realise them at substantial loss
  2. 2 Whether the Court may grant special powers to retain speculative assets in trust administration

Ratio Decidendi

The Court held that in exceptional circumstances, where immediate realisation of speculative assets would cause disproportionate loss to the estate, a judicial factor may be authorised to retain such assets, but only in hoc statu and not for a definite term, with ongoing reporting to the Accountant of Court. The retention is not to be for speculative purposes, and the assets should be realised as soon as it can be done without sacrificing the rest of the estate.

Court Disposition

Application granted with conditions

Orders

  • Factor authorised to retain shares in hoc statu without fixed term
  • Factor directed to report to Accountant of Court upon any change in circumstances