Dalziel v. Dalziel's Trustees. Dalziel v. Henderson's Trustees [1905] ScotLR 42_404 (09 March 1905)

Dalziel v. Dalziel's Trustees. Dalziel v. Henderson's Trustees [1905] ScotLR 42_404 (09 March 1905)

Mrs Dalziel's will validly exercised her powers of appointment under both her own deed of settlement and her father's trust-disposition, as the general conveyance to trustees was a sufficient and formal mode of exercising the power, and the term 'issue' included grandchildren. The appointment of a liferent to her daughter and fee to her daughter's children was intra vires. The provision for a daughter's husband was ultra vires but severable and did not affect the validity of the rest of the appointment. The testamentary trustees were entitled to administer the funds under Mrs Dalziel's settlement; Mr Henderson's trustees continued to administer the fund under his trust-disposition.

Citation
[1905] ScotLR 42_404
Parties
First Party (applicant): Esther Blanche Dalziel; Second Party (applicant): Ralph Cannan Dalziel; Third Party (respondent, First Case): Trustees under Mrs Dalziel's deed of settlement (Stonhewer Parker Freeman, James Pipe); Third Party (respondent, Second Case): Trustees under Mr Henderson's trust-disposition (Arthur Henderson and others); Fourth Party (respondent, First Case): Trustees under Mrs Dalziel's last will and testament (James Pipe, Stonhewer Parker Freeman, William Cunningham Macnaughtan)
Jurisdiction
Scotland
Judgment Date
09 March 1905
Procedural Posture
Special Case (court of Session, Inner House, First Division) / Final Judgment
Outcome
Powers of appointment validly exercised by Mrs Dalziel's will except as to the provision for a daughter's husband, which is ultra vires and severable. Testamentary trustees to administer Mrs Dalziel's settled funds; Mr Henderson's trustees to continue administration of his trust fund.
Legal Topics
Power of Appointment, Validity of Exercise of Powers, Interpretation of 'issue' in Trusts, Ultra Vires Exercise of Power, Trust Administration
Succession Trusts and Estates Power of Appointment Validity of Exercise of Powers Interpretation of 'issue' in Trusts Ultra Vires Exercise of Power Trust Administration

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Parties

Esther Blanche Dalziel

First Party (applicant)

Ralph Cannan Dalziel

Second Party (applicant)

Trustees under Mrs Dalziel's deed of settlement (Stonhewer Parker Freeman, James Pipe)

Third Party (respondent, First Case)

Trustees under Mr Henderson's trust-disposition (Arthur Henderson and others)

Third Party (respondent, Second Case)

Trustees under Mrs Dalziel's last will and testament (James Pipe, Stonhewer Parker Freeman, William Cunningham Macnaughtan)

Fourth Party (respondent, First Case)

Procedural Posture

Special Case (court of Session, Inner House, First Division) / Final Judgment

Legal Issues

  1. 1 Whether Mrs Dalziel's will constituted a valid exercise of her powers of appointment under her own deed of settlement and her father's trust-disposition.
  2. 2 Whether the trusts and limitations imposed in her will were intra vires or ultra vires the powers of appointment.
  3. 3 Whether the appointment of trustees and the administration of the funds were valid.

Ratio Decidendi

Mrs Dalziel's will validly exercised her powers of appointment under both her own deed of settlement and her father's trust-disposition, as the general conveyance to trustees was a sufficient and formal mode of exercising the power, and the term 'issue' included grandchildren. The appointment of a liferent to her daughter and fee to her daughter's children was intra vires. The provision for a daughter's husband was ultra vires but severable and did not affect the validity of the rest of the appointment. The testamentary trustees were entitled to administer the funds under Mrs Dalziel's settlement; Mr Henderson's trustees continued to administer the fund under his trust-disposition.

Court Disposition

Powers of appointment validly exercised by Mrs Dalziel's will except as to the provision for a daughter's husband, which is ultra vires and severable. Testamentary trustees to administer Mrs Dalziel's settled funds; Mr Henderson's trustees to continue administration of his trust fund.

Orders

  • First question answered in the negative (directions in will not valid only to extent of trust for son and daughter).
  • Second question answered in the affirmative (trusts imposed on daughter's share valid).