Muirhead's Trustees v. Muirhead [1905] ScotLR 42_367 (17 February 1905)

Muirhead's Trustees v. Muirhead [1905] ScotLR 42_367 (17 February 1905)

The Court held that, following Graham v. Graham's Trustees, the goodwill of both businesses was heritable in character, as it was inseparably attached to the licensed premises and not to the personal reputation or name of the deceased. The sums received for the goodwill were therefore to be treated as heritable for the purpose of fixing the widow's legal rights, and the Lord Ordinary's interlocutor was recalled in so far as it found any part of the goodwill to be moveable.

Citation
[1905] ScotLR 42_367
Parties
Pursuer: Muirhead's Trustees; Defender/respondent: Mrs Jessie Ballantyne or Muirhead
Jurisdiction
Scotland
Judgment Date
17 February 1905
Procedural Posture
Multiplepoinding / Inner House, First Division, Reclaiming Note (appeal) Against Lord Ordinary's Interlocutor
Outcome
Lord Ordinary's interlocutor recalled in part; goodwill of both businesses found wholly heritable; widow entitled to terce only, not jus relictæ, from the fund in medio as specified.
Legal Topics
Goodwill Classification, Heritable Vs Moveable Property, Jus Relictæ, Terce, Widow's Legal Rights, Business Succession
Succession Law Property Law Trusts and Estates Goodwill Classification Heritable Vs Moveable Property Jus Relictæ Terce Widow's Legal Rights +1 more

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Parties

Muirhead's Trustees

Pursuer

Mrs Jessie Ballantyne or Muirhead

Defender/respondent

Procedural Posture

Multiplepoinding / Inner House, First Division, Reclaiming Note (appeal) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether the sums paid for the goodwill of two licensed businesses are to be treated as heritable or moveable for the purpose of the widow's legal rights (jus relictæ and terce)
  2. 2 Whether the Lord Ordinary was correct in apportioning the goodwill as partly heritable and partly moveable

Ratio Decidendi

The Court held that, following Graham v. Graham's Trustees, the goodwill of both businesses was heritable in character, as it was inseparably attached to the licensed premises and not to the personal reputation or name of the deceased. The sums received for the goodwill were therefore to be treated as heritable for the purpose of fixing the widow's legal rights, and the Lord Ordinary's interlocutor was recalled in so far as it found any part of the goodwill to be moveable.

Court Disposition

Lord Ordinary's interlocutor recalled in part; goodwill of both businesses found wholly heritable; widow entitled to terce only, not jus relictæ, from the fund in medio as specified.

Orders

  • Find the value of the goodwill, utensils, fittings, etc., of the Keppochhill Road business at £4000, wholly heritable.
  • Find the sum of £11,600 for the Springburn Road business, in so far as it consists of goodwill, wholly heritable; value at date of death £10,600.