Mills v. Brown's Trustees [1901] ScotLR 38_741 (27 June 1901)

Mills v. Brown's Trustees [1901] ScotLR 38_741 (27 June 1901)

Where a trustee, acting in good faith and on legal advice, is appointed manager and paid salary ultra vires, but the trust estate suffers no loss, the trustee must repay the sums received but is not liable for interest on those sums.

Citation
[1901] ScotLR 38_741
Parties
Pursuer and Respondent: Mills; Defenders: Brown's Trustees; Defender and Reclaimer: Robert Brown
Jurisdiction
Scotland
Judgment Date
27 June 1901
Procedural Posture
Civil / Appeal (reclaiming Note) From Interlocutor of Lord Low Dated 19 March 1901
Outcome
Appeal allowed in part; interlocutor recalled insofar as it found Robert Brown liable in interest and entitled the pursuer to expenses; otherwise adhered to interlocutor; no expenses due to or by any party since 19 June 1900.
Legal Topics
Trustee Powers, Ultra Vires Acts, Repayment of Trust Funds, Interest Liability, Bona Fide Receipt
Trusts Equity Trustee Powers Ultra Vires Acts Repayment of Trust Funds Interest Liability Bona Fide Receipt

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Parties

Mills

Pursuer and Respondent

Brown's Trustees

Defenders

Robert Brown

Defender and Reclaimer

Procedural Posture

Civil / Appeal (reclaiming Note) From Interlocutor of Lord Low Dated 19 March 1901

Legal Issues

  1. 1 Whether a trustee appointed as salaried manager contrary to trust powers must repay salary and commission received
  2. 2 Whether such trustee is liable to pay interest on sums to be repaid

Ratio Decidendi

Where a trustee, acting in good faith and on legal advice, is appointed manager and paid salary ultra vires, but the trust estate suffers no loss, the trustee must repay the sums received but is not liable for interest on those sums.

Court Disposition

Appeal allowed in part; interlocutor recalled insofar as it found Robert Brown liable in interest and entitled the pursuer to expenses; otherwise adhered to interlocutor; no expenses due to or by any party since 19 June 1900.

Orders

  • Recall of interlocutor of 19 March 1901 insofar as it finds Robert Brown liable in interest on £3,205 10s 5d and as to expenses.
  • Adherence to interlocutor in other respects.