Cathcart v. Baxter's Trustees [1920] ScotLR 233 (18 December 1920)

Cathcart v. Baxter's Trustees [1920] ScotLR 233 (18 December 1920)

The investment in the Mexican Central Railway Securities Company debenture stock was within the express powers of the trustees under the trust deed, and there was no evidence of negligence in making or retaining the investment. Trustees are entitled to exercise their judgment and are not liable for mere errors of judgment when acting prudently and on advice.

Citation
[1920] ScotLR 233
Parties
Pursuer and Reclaimer: Alan Taylor Cathcart; Defenders and Respondents: Edward Armitstead Baxter of Kincaldrum and another (Baxter's Trustees)
Jurisdiction
Scotland
Judgment Date
18 December 1920
Procedural Posture
Action of Count, Reckoning, and Payment / Reclaiming Note (appeal) Against Interlocutor of Lord Ordinary
Outcome
Objections to the trustees' account repelled; action dismissed; interlocutor of Lord Ordinary recalled and regularised by consent.
Legal Topics
Trustee Investment Powers, Liability of Trustees, Negligence, Ultra Vires Acts, Duty to Realise Investments
Trusts and Estates Equity Trustee Investment Powers Liability of Trustees Negligence Ultra Vires Acts Duty to Realise Investments

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Parties

Alan Taylor Cathcart

Pursuer and Reclaimer

Edward Armitstead Baxter of Kincaldrum and another (Baxter's Trustees)

Defenders and Respondents

Procedural Posture

Action of Count, Reckoning, and Payment / Reclaiming Note (appeal) Against Interlocutor of Lord Ordinary

Legal Issues

  1. 1 Whether the investment in Mexican Central Railway Securities Company debenture stock was within the trustees' powers under the trust deed
  2. 2 Whether the trustees were negligent in making or retaining the investment
  3. 3 Whether trustees had a duty to realise the investment when its value declined

Ratio Decidendi

The investment in the Mexican Central Railway Securities Company debenture stock was within the express powers of the trustees under the trust deed, and there was no evidence of negligence in making or retaining the investment. Trustees are entitled to exercise their judgment and are not liable for mere errors of judgment when acting prudently and on advice.

Court Disposition

Objections to the trustees' account repelled; action dismissed; interlocutor of Lord Ordinary recalled and regularised by consent.

Orders

  • Recall the interlocutor of the Lord Ordinary
  • Hold the accounts produced by defenders as the account called for in the summons