Free Church of Scotland and Others v. Macknight's Trustees [1916] ScotLR 260 (14 January 1916)

Free Church of Scotland and Others v. Macknight's Trustees [1916] ScotLR 260 (14 January 1916)

Neither the trustees nor their law agents were personally liable for failure to recover income tax, as there was no negligence established; ignorance of a later House of Lords decision did not constitute negligence in the absence of professional consensus or common knowledge at the relevant time.

Citation
[1916] ScotLR 260
Parties
Pursuers: Free Church of Scotland and Others; Defenders: Hugh Martin and Others (A.G. Macknight's Trustees); Defender: William Sutherland M'Kay
Jurisdiction
Scotland
Judgment Date
14 January 1916
Procedural Posture
Action of Count, Reckoning, and Payment / Appeal—inner House, First Division, Court of Session
Outcome
Objection to trustees' accounts repelled; appeal dismissed; judgment for defenders.
Legal Topics
Trustee Liability, Charitable Bequests, Income Tax Recovery, Negligence of Trustees and Agents
Trusts and Estates Charity Law Taxation Trustee Liability Charitable Bequests Income Tax Recovery Negligence of Trustees and Agents

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 15 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Free Church of Scotland and Others

Pursuers

Hugh Martin and Others (A.G. Macknight's Trustees)

Defenders

William Sutherland M'Kay

Defender

Procedural Posture

Action of Count, Reckoning, and Payment / Appeal—inner House, First Division, Court of Session

Legal Issues

  1. 1 Whether trustees and their law agents are personally liable for failure to recover income tax on trust income applied to religious purposes.
  2. 2 Whether failure to recover income tax due to ignorance of a House of Lords decision constitutes negligence.

Ratio Decidendi

Neither the trustees nor their law agents were personally liable for failure to recover income tax, as there was no negligence established; ignorance of a later House of Lords decision did not constitute negligence in the absence of professional consensus or common knowledge at the relevant time.

Court Disposition

Objection to trustees' accounts repelled; appeal dismissed; judgment for defenders.

Orders

  • Court adhered to the interlocutor of the Lord Ordinary.