Lewis' Trustees v. Pirie and Others [1912] ScotLR 439 (10 February 1912)

Lewis' Trustees v. Pirie and Others [1912] ScotLR 439 (10 February 1912)

Where a trust deed empowers trustees to appoint one of their own number as law agent, and the trustee performs professional work for the trust on the instructions or with the knowledge and approval of the other trustees, remuneration is permissible even if the appointment is not formally minuted, provided the facts establish such appointment and approval.

Citation
[1912] ScotLR 439
Parties
Pursuer: George Macritchie Crichton and others (Lewis' Trustees); Defender: Alexander Pirie, Alexander Morrison Williamson, and William Young
Jurisdiction
Scotland
Judgment Date
10 February 1912
Procedural Posture
Civil Appeal / Appeal From Sheriff Court to Court of Session, Inner House, First Division
Outcome
appeal dismissed; interlocutor of Sheriff-Substitute affirmed
Legal Topics
Trustee Remuneration, Appointment of Trustee as Law Agent, Conflict of Interest in Trusts, Formalities of Appointment
Trusts Agency Law Trustee Remuneration Appointment of Trustee as Law Agent Conflict of Interest in Trusts Formalities of Appointment

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Parties

George Macritchie Crichton and others (Lewis' Trustees)

Pursuer

Alexander Pirie, Alexander Morrison Williamson, and William Young

Defender

Procedural Posture

Civil Appeal / Appeal From Sheriff Court to Court of Session, Inner House, First Division

Legal Issues

  1. 1 Whether a trustee who is a law agent and his firm can be remunerated for professional services to the trust without a formal minuted appointment, where the trust deed authorises such appointment.
  2. 2 Whether the absence of a formal minute invalidates the entitlement to remuneration.

Ratio Decidendi

Where a trust deed empowers trustees to appoint one of their own number as law agent, and the trustee performs professional work for the trust on the instructions or with the knowledge and approval of the other trustees, remuneration is permissible even if the appointment is not formally minuted, provided the facts establish such appointment and approval.

Court Disposition

appeal dismissed; interlocutor of Sheriff-Substitute affirmed

Orders

  • Remit to Sheriff Court for taxation of the accounts and disposal of expenses other than those of the appeal.