Taylor & Ferguson, Ltd v. Glass and Others (Glass's Trustees) [1911] ScotLR 78 (22 November 1911)

Taylor & Ferguson, Ltd v. Glass and Others (Glass's Trustees) [1911] ScotLR 78 (22 November 1911)

Trustees are not personally liable for the £500 guarantee because the pursuers failed to constitute their debt promptly and the trustees acted within their rights in distributing the estate to creditors who had liquid debts; executors are not required to reserve funds for contingent claims unless formally presented.

Citation
[1911] ScotLR 78
Parties
Pursuer: Taylor & Ferguson, Limited; Defender: John Glass and Others (Glass's Trustees)
Jurisdiction
Scotland
Judgment Date
22 November 1911
Procedural Posture
Civil / Appeal (reclaiming Note)
Outcome
appeal dismissed; interlocutor adhered
Legal Topics
Personal Liability of Trustees, Executor Duties, Guarantee Enforcement
Trusts Succession Personal Liability of Trustees Executor Duties Guarantee Enforcement

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Parties

Taylor & Ferguson, Limited

Pursuer

John Glass and Others (Glass's Trustees)

Defender

Procedural Posture

Civil / Appeal (reclaiming Note)

Legal Issues

  1. 1 Are trustees personally liable for payment under a guarantee when trust funds have been distributed to other creditors?
  2. 2 Did the pursuers' delay in constituting their debt affect their claim against the trustees?

Ratio Decidendi

Trustees are not personally liable for the £500 guarantee because the pursuers failed to constitute their debt promptly and the trustees acted within their rights in distributing the estate to creditors who had liquid debts; executors are not required to reserve funds for contingent claims unless formally presented.

Court Disposition

appeal dismissed; interlocutor adhered

Orders

  • Defenders assoilzied from personal liability
  • Decree against defenders in representative capacity only