Fletcher v McNair (1350/2019) [2020] ZASCA 135 (23 October 2020)

Fletcher v McNair (1350/2019) [2020] ZASCA 135 (23 October 2020)

The Supreme Court of Appeal held that the breakdown in relationship between co-trustees, even if originating from outside the Trust, is not on its own sufficient for removal of a trustee. The determinative test is whether the Trust property or its administration is imperilled. The evidence showed that, despite acrimony, the Trust continued to function effectively, with meetings held and distributions made to beneficiaries. The respondent's complaints did not establish that the appellant's conduct endangered the Trust property or its administration. The Full Court erred in relying on loss of mutual respect and trust as a standalone ground for removal and misconstrued facts regarding...

Citation
[2020] ZASCA 135
Parties
Appellant: Warren John Fletcher; Respondent: Gillian Claire McNair
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
23 October 2020
Case Number
1350/2019
Procedural Posture
Civil Appeal / Appeal From Full Court Decision
Outcome
Appeal upheld; order of Full Court set aside and substituted.
Judges
Cachalia, Makgoka, Plasket, Eksteen, Sutherland
Legal Topics
Removal of Trustee, Trust Property Control Act, Fiduciary Duties, Conflict of Interest
Land and Property Civil Procedure Removal of Trustee Trust Property Control Act Fiduciary Duties Conflict of Interest

Case Brief

Summary, issues, holding and outcome

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Parties

Warren John Fletcher

Appellant

Gillian Claire McNair

Respondent

Procedural Posture

Civil Appeal / Appeal From Full Court Decision

Legal Issues

  1. 1 Whether the breakdown in relationship between co-trustees, originating from outside the Trust, is sufficient for removal of a co-trustee.
  2. 2 Whether the conduct of the appellant imperilled the Trust property or its proper administration.
  3. 3 Whether the interests of the Trust and its beneficiaries require the removal of the appellant as trustee.

Ratio Decidendi

The Supreme Court of Appeal held that the breakdown in relationship between co-trustees, even if originating from outside the Trust, is not on its own sufficient for removal of a trustee. The determinative test is whether the Trust property or its administration is imperilled. The evidence showed that, despite acrimony, the Trust continued to function effectively, with meetings held and distributions made to beneficiaries. The respondent's complaints did not establish that the appellant's conduct endangered the Trust property or its administration. The Full Court erred in relying on loss of mutual respect and trust as a standalone ground for removal and misconstrued facts regarding...

Court Disposition

Appeal upheld; order of Full Court set aside and substituted.

Orders

  • The appeal is upheld with costs, which includes the costs in the application to adduce further evidence.
  • The order of the Full Court is set aside and substituted with: 'The appeal is dismissed with costs.'