Galloway v. Campbell's Trustees [1905] ScotLR 42_712 (11 July 1905)

Galloway v. Campbell's Trustees [1905] ScotLR 42_712 (11 July 1905)

The trustees' general power of sale in the settlement applies to the railway stock, and there is no clear intention in the trust deed to exclude this power from operating during the liferenter's lifetime. The purpose of the bequest was to provide income to the beneficiary, not to require retention of a non-income-yielding asset. Therefore, the trustees have power to realise the shares during the beneficiary's lifetime.

Citation
[1905] ScotLR 42_712
Parties
Applicant (first Party / Beneficiary): George William Galloway; Respondent (second Parties / Trustees): Campbell's Trustees
Jurisdiction
Scotland
Judgment Date
11 July 1905
Procedural Posture
Special Case (trust Law) / Inner House, Second Division, Court of Session (judgment)
Outcome
Question answered in the affirmative; trustees have power to realise the shares during the lifetime of the beneficiary.
Legal Topics
Testamentary Trusts, Powers of Trustees, Specific Legacy, Administration of Trusts, Liferent and Fee, Investment of Trust Funds
Trusts and Estates Succession Law Testamentary Trusts Powers of Trustees Specific Legacy Administration of Trusts Liferent and Fee Investment of Trust Funds

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Parties

George William Galloway

Applicant (first Party / Beneficiary)

Campbell's Trustees

Respondent (second Parties / Trustees)

Procedural Posture

Special Case (trust Law) / Inner House, Second Division, Court of Session (judgment)

Legal Issues

  1. 1 Whether trustees have power to realise (sell) specific railway stock during the lifetime of the liferenter (beneficiary), contrary to the literal direction to hold until his death, when the stock ceases to yield income.

Ratio Decidendi

The trustees' general power of sale in the settlement applies to the railway stock, and there is no clear intention in the trust deed to exclude this power from operating during the liferenter's lifetime. The purpose of the bequest was to provide income to the beneficiary, not to require retention of a non-income-yielding asset. Therefore, the trustees have power to realise the shares during the beneficiary's lifetime.

Court Disposition

Question answered in the affirmative; trustees have power to realise the shares during the lifetime of the beneficiary.

Orders

  • Trustees are authorised to sell the Great Central Railway Company stock during the lifetime of George William Galloway, reinvest the proceeds, and pay him the annual income thereof.