Hedderwick and Others (Hedderwick's Trustees) v. Hedderwick's Executor and Others [1910] ScotLR 238 (20 January 1910)

Hedderwick and Others (Hedderwick's Trustees) v. Hedderwick's Executor and Others [1910] ScotLR 238 (20 January 1910)

The trust failed because the firm and its managers, as specified in the trust, ceased to exist upon the transfer of the business to a limited company. There was no machinery or persons competent to administer the trust or determine its objects, and the court could not supply such machinery for a non-charitable trust. The fund therefore fell into intestacy and was to be administered by the executor-dative.

Citation
[1910] ScotLR 238
Parties
Claimant and Reclaimer: Edwin Charles Hedderwick (Dr Hedderwick's Executor); Claimant and Respondent: Maxwell Hedderwick (Dr Hedderwick's Trustee); Claimant: James Hedderwick & Sons, Limited
Jurisdiction
Scotland
Judgment Date
20 January 1910
Procedural Posture
Multiplepoinding / Inner House, Second Division, on Reclaiming Motion
Outcome
Trust failed; fund fell into intestacy; executor-dative entitled to the fund.
Legal Topics
Failure of Trust Objects, Trust for Benefit of Firm, Conversion of Business to Limited Company, Intestacy
Trusts and Estates Succession Law Failure of Trust Objects Trust for Benefit of Firm Conversion of Business to Limited Company Intestacy

Case Brief

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Parties

Edwin Charles Hedderwick (Dr Hedderwick's Executor)

Claimant and Reclaimer

Maxwell Hedderwick (Dr Hedderwick's Trustee)

Claimant and Respondent

James Hedderwick & Sons, Limited

Claimant

Procedural Posture

Multiplepoinding / Inner House, Second Division, on Reclaiming Motion

Legal Issues

  1. 1 Whether the trust created by Dr Hedderwick's letter of 10 November 1895 was void for uncertainty or failed due to the conversion of the business to a limited company and cessation of the firm.
  2. 2 Whether the trust purposes could be carried out after the firm's dissolution and transfer of business to a new company.

Ratio Decidendi

The trust failed because the firm and its managers, as specified in the trust, ceased to exist upon the transfer of the business to a limited company. There was no machinery or persons competent to administer the trust or determine its objects, and the court could not supply such machinery for a non-charitable trust. The fund therefore fell into intestacy and was to be administered by the executor-dative.

Court Disposition

Trust failed; fund fell into intestacy; executor-dative entitled to the fund.

Orders

  • Recall the interlocutor reclaimed against.
  • Remit to the Lord Ordinary to rank and prefer Edwin Charles Hedderwick as executor-dative of Dr James Hedderwick, in terms of his claim.