Free Church of Scotland and Others v. MacKnight's Trustees [1912] ScotLR 55 (26 October 1912)

Free Church of Scotland and Others v. MacKnight's Trustees [1912] ScotLR 55 (26 October 1912)

The allocation orders under the Churches (Scotland) Act 1905 substituted the original trust purposes with statutory purposes that can only be carried out by the Church itself. The trustees' discretionary power to act independently is inapplicable under the new statutory regime, and the Free Church is entitled to direct the application of the income.

Citation
[1912] ScotLR 55
Parties
Pursuer: Free Church of Scotland and Others; Defender: MacKnight's Trustees
Jurisdiction
Scotland
Judgment Date
26 October 1912
Procedural Posture
Civil / Appeal (reclaiming Motion)
Outcome
Lord Ordinary's interlocutor recalled; declarator granted in favour of the Free Church.
Legal Topics
Allocation of Trust Property, Administration of Charitable Trusts, Effect of Statutory Allocation on Trustee Discretion
Trusts Statutory Interpretation Church Law Allocation of Trust Property Administration of Charitable Trusts Effect of Statutory Allocation on Trustee Discretion

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Parties

Free Church of Scotland and Others

Pursuer

MacKnight's Trustees

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion)

Legal Issues

  1. 1 Whether allocation orders under the Churches (Scotland) Act 1905 altered the trust purposes and displaced trustees' discretionary power to act independently of the Church
  2. 2 Whether the Free Church is entitled to direct the application of the income from MacKnight's trust estate

Ratio Decidendi

The allocation orders under the Churches (Scotland) Act 1905 substituted the original trust purposes with statutory purposes that can only be carried out by the Church itself. The trustees' discretionary power to act independently is inapplicable under the new statutory regime, and the Free Church is entitled to direct the application of the income.

Court Disposition

Lord Ordinary's interlocutor recalled; declarator granted in favour of the Free Church.

Orders

  • Trustees must pay over the free annual income of MacKnight's estate to the Free Church or its treasurer, to be applied for statutory purposes as directed by the Church.
  • Expenses to be paid out of the income.