Johnstone v. Thorburn [1900] ScotLR 38_343 (19 February 1900)

Johnstone v. Thorburn [1900] ScotLR 38_343 (19 February 1900)

The law-agent was not liable because the trustees made the investment based on their own inquiries, not on the agent's advice, and the agent was not expressly employed to advise on sufficiency or value. Submission of investment options did not impose a duty to investigate sufficiency unless specifically instructed.

Citation
[1900] ScotLR 38_343
Parties
Pursuer: James Johnstone; Defender: Robert Thorburn
Jurisdiction
Scotland
Judgment Date
19 February 1900
Procedural Posture
Action for Relief/damages / Final Judgment, Inner House, Court of Session
Outcome
Defender entitled to absolvitor; action dismissed.
Legal Topics
Liability of Law Agent, Trust Investment Sufficiency, Duty of Care, Responsibility for Advice, Priority of Security
Trusts and Estates Professional Negligence Agency Law Liability of Law Agent Trust Investment Sufficiency Duty of Care Responsibility for Advice Priority of Security

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Parties

James Johnstone

Pursuer

Robert Thorburn

Defender

Procedural Posture

Action for Relief/damages / Final Judgment, Inner House, Court of Session

Legal Issues

  1. 1 Was the law-agent liable for losses due to insufficient trust investment?
  2. 2 Did the law-agent undertake a duty to advise on sufficiency of the investment?
  3. 3 Did the trustees act on the law-agent's advice or their own inquiries?

Ratio Decidendi

The law-agent was not liable because the trustees made the investment based on their own inquiries, not on the agent's advice, and the agent was not expressly employed to advise on sufficiency or value. Submission of investment options did not impose a duty to investigate sufficiency unless specifically instructed.

Court Disposition

Defender entitled to absolvitor; action dismissed.

Orders

  • Absolvitor granted in favour of defender.
  • No liability for sums claimed by pursuer.