Burrell v. Burrell's Trustees [1915] ScotLR 312 (19 January 1915)

Burrell v. Burrell's Trustees [1915] ScotLR 312 (19 January 1915)

There is no absolute rule of law that the purchase of trust property from trustees by the wife of one of them is illegal. Where the wife acts independently, pays full value from her own means, and there is no evidence of the husband's intervention or benefit, the transaction stands.

Citation
[1915] ScotLR 312
Parties
Pursuer: Henry Burrell; Defender: George Burrell; Defender: William Burrell; Defender: Mrs Anne Jane M'Caig or Burrell; Defender: Mrs Constance Mitchell or Burrell; Defender: Trustees of Mrs Isabella Guthrie or Burrell
Jurisdiction
Scotland
Judgment Date
19 January 1915
Procedural Posture
Civil Appeal / Inner House, Reclaiming Motion From Outer House Interlocutor
Outcome
appeal dismissed; interlocutor adhered to; defenders assoilzied
Legal Topics
Purchase of Trust Property by Trustee's Spouse, Conflict of Interest in Trusts, Fiduciary Duties, Husband and Wife Property Transactions
Trusts Family Law Purchase of Trust Property by Trustee's Spouse Conflict of Interest in Trusts Fiduciary Duties Husband and Wife Property Transactions

Case Brief

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Parties

Henry Burrell

Pursuer

George Burrell

Defender

William Burrell

Defender

Mrs Anne Jane M'Caig or Burrell

Defender

Mrs Constance Mitchell or Burrell

Defender

Trustees of Mrs Isabella Guthrie or Burrell

Defender

Procedural Posture

Civil Appeal / Inner House, Reclaiming Motion From Outer House Interlocutor

Legal Issues

  1. 1 Whether the purchase of trust property by the wife of a trustee is void or voidable as a matter of law due to conflict of interest or fiduciary breach
  2. 2 Whether the relationship of husband and wife creates a presumption of conflict sufficient to set aside such a transaction

Ratio Decidendi

There is no absolute rule of law that the purchase of trust property from trustees by the wife of one of them is illegal. Where the wife acts independently, pays full value from her own means, and there is no evidence of the husband's intervention or benefit, the transaction stands.

Court Disposition

appeal dismissed; interlocutor adhered to; defenders assoilzied

Orders

  • The Court adhered to the interlocutor of the Lord Ordinary repelling the pursuer's pleas and assoilzieing the defenders in both actions.