Paton v. Paton's Trustees [1903] ScotLR 40_402 (25 February 1903)

Paton v. Paton's Trustees [1903] ScotLR 40_402 (25 February 1903)

Litigation expenses incurred by trustees in defending the trust estate against a claim for legitim are to be charged against the trust estate as a whole, not solely against the pursuer's alimentary liferent, because the litigation was conducted for the benefit of all beneficiaries, not exclusively for the pursuer.

Citation
[1903] ScotLR 40_402
Parties
Pursuer/respondent: James Middleton Paton; Defenders/reclaimers: Paton's Trustees (testamentary trustees of John George Paton)
Jurisdiction
Scotland
Judgment Date
25 February 1903
Procedural Posture
Action of Count, Reckoning, and Payment / Inner House, Second Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to.
Legal Topics
Legitim, Equitable Compensation, Alimentary Liferent, Trust Expenses
Succession Trusts and Estates Legitim Equitable Compensation Alimentary Liferent Trust Expenses

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Parties

James Middleton Paton

Pursuer/respondent

Paton's Trustees (testamentary trustees of John George Paton)

Defenders/reclaimers

Procedural Posture

Action of Count, Reckoning, and Payment / Inner House, Second Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether litigation expenses incurred by trustees in defending against a claim for legitim are chargeable against the pursuer's alimentary liferent or the trust estate generally

Ratio Decidendi

Litigation expenses incurred by trustees in defending the trust estate against a claim for legitim are to be charged against the trust estate as a whole, not solely against the pursuer's alimentary liferent, because the litigation was conducted for the benefit of all beneficiaries, not exclusively for the pursuer.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to.

Orders

  • Expenses of litigation not chargeable against pursuer's alimentary liferent but against trust estate generally.
  • Amount paid to trustee in bankruptcy to be repaid to estate out of pursuer's life interest before further benefit accrues.