Mills v. Brown [1900] ScotLR 37_810 (19 June 1900)

Mills v. Brown [1900] ScotLR 37_810 (19 June 1900)

The trust deed did not authorise the trustees to appoint and remunerate one of their own number as salaried manager of the business; the power to appoint a 'factor or cashier' did not include the appointment of a manager of a manufacturing concern. Therefore, the payments to Robert Brown tertius as manager were ultra vires.

Citation
[1900] ScotLR 37_810
Parties
Pursuer: William Mills and certain beneficiaries under the trust settlement; Defender and Reclaimer: Robert Brown tertius; Defender: Trustees of Robert Brown's estate
Jurisdiction
Scotland
Judgment Date
19 June 1900
Procedural Posture
Civil / Appeal (reclaiming Motion) From Interlocutor of Lord Ordinary
Outcome
appeal dismissed; interlocutor of Lord Ordinary adhered to
Legal Topics
Trustee Remuneration, Ultra Vires Acts, Conflict of Interest, Interpretation of Trust Deeds
Trusts and Estates Equity Trustee Remuneration Ultra Vires Acts Conflict of Interest Interpretation of Trust Deeds

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

William Mills and certain beneficiaries under the trust settlement

Pursuer

Robert Brown tertius

Defender and Reclaimer

Trustees of Robert Brown's estate

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Interlocutor of Lord Ordinary

Legal Issues

  1. 1 Whether trustees had power under the trust deed to appoint and remunerate one of their own number as salaried manager of the testator's business
  2. 2 Whether the term 'factor or cashier' in the trust deed included the role of manager of a manufacturing business

Ratio Decidendi

The trust deed did not authorise the trustees to appoint and remunerate one of their own number as salaried manager of the business; the power to appoint a 'factor or cashier' did not include the appointment of a manager of a manufacturing concern. Therefore, the payments to Robert Brown tertius as manager were ultra vires.

Court Disposition

appeal dismissed; interlocutor of Lord Ordinary adhered to

Orders

  • Declarator granted that appointment and remuneration of Robert Brown tertius as manager was ultra vires
  • Interdict granted against further payment of salary or remuneration to Robert Brown tertius as manager while acting as trustee