Earl of Rosslyn's Trustee v. Earl of Rosslyn's Trustees [1900] ScotLR 38_224 (21 December 1900)

Earl of Rosslyn's Trustee v. Earl of Rosslyn's Trustees [1900] ScotLR 38_224 (21 December 1900)

The trust-deed, while not reducible for fraud or prejudice to creditors, was superseded by the supervening bankruptcy of the Earl of Rosslyn. The trustees are bound to denude the trust estate in favour of the bankruptcy trustee, subject to valid securities and rights of indemnity, and to account for their intromissions. The trust-deed stands unreduced but is suspended for the purposes of the bankruptcy.

Citation
[1900] ScotLR 38_224
Parties
Pursuer: Frederick Seymour Salaman (Trustee in Bankruptcy of Earl of Rosslyn); Defenders: Robert Charles De Grey Vyner, R. N. Bennett, Earl of Rosslyn (as Trustees)
Jurisdiction
Scotland
Judgment Date
21 December 1900
Procedural Posture
Civil / Appeal (inner House, Second Division, After Lord Ordinary's Interlocutor)
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to.
Legal Topics
Voluntary Trust Deed, Supervening Bankruptcy, Reduction of Trust Deed, Obligation to Denude, Accounting by Trustees, Fraudulent Alienation, Creditors' Rights
Bankruptcy Trusts and Estates Voluntary Trust Deed Supervening Bankruptcy Reduction of Trust Deed Obligation to Denude Accounting by Trustees Fraudulent Alienation +1 more

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Parties

Frederick Seymour Salaman (Trustee in Bankruptcy of Earl of Rosslyn)

Pursuer

Robert Charles De Grey Vyner, R. N. Bennett, Earl of Rosslyn (as Trustees)

Defenders

Procedural Posture

Civil / Appeal (inner House, Second Division, After Lord Ordinary's Interlocutor)

Legal Issues

  1. 1 Whether the trust-deed executed by the Earl of Rosslyn is reducible on grounds of fraud or prejudice to creditors
  2. 2 Whether the supervening English bankruptcy supersedes the private trust and obliges the trustees to denude in favour of the bankruptcy trustee
  3. 3 Whether the trustees are bound to account for their intromissions with the estate

Ratio Decidendi

The trust-deed, while not reducible for fraud or prejudice to creditors, was superseded by the supervening bankruptcy of the Earl of Rosslyn. The trustees are bound to denude the trust estate in favour of the bankruptcy trustee, subject to valid securities and rights of indemnity, and to account for their intromissions. The trust-deed stands unreduced but is suspended for the purposes of the bankruptcy.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to.

Orders

  • Trustees to denude of the trust estate in favour of the bankruptcy trustee, subject to valid securities and rights of indemnity.
  • Trustees to account for their intromissions with the estate.