Case table produced by 1st class law student. Includes:
- Facts of case (where needed)
- Quotes/judgment
- Significance/ critical analysis
This case table includes key cases on trustees' powers and duties, with sub-topics on; the duty of investment, duty of care, diversification
Please ...
Case Facts Quotes/judgment Significance or
comment
Re Wragg [1919] Testator died. Trust was to Judge concluded that a construction of the trust document to strictly only Always evaluate
2 Ch 58, 65 sell the remainder of this include investments in stock shares and securities places ‘too narrow a the trust doc first
estate, the proceeds of sale construction’ considering the words ‘whatsoever nature and wheresoever’ in assessments
Power of to be on trust to his which immediately follow.
investment; children. ‘In my opinion it must depend in each case upon the construction of
defining Trust document authorised the particular instrument whether the investments authorised are
investment trustees to invest any confined to what are strictly trust investments or not’
money forming his trust Defining investment:
estate in the trustee’s ‘Without attempting to give an exhaustive definition of the words
‘absolute and uncontrolled ‘invest’ and "investment" I think that the verb " to invest " when
discretion’ on ‘stock funds used in an investment clause may safely be said to include as one of
shares and securities or its meanings " to apply money in the purchase of some property
other investments… of from which interest or profit is expected and which j . property is
whatsoever nature and purchased in order to be held for the sake of the income which it
wheresoever’ will yield"
Trustees invested in real ‘where the word " investments " is used without any such context,
estate; claimants argued or where, as in this case, the instrument in which it occurs
that this was not permitted expressly provides that the word is not to have any such restricted
as ‘other investments’ meaning, I think that it includes real estate purchased as an
should be restricted to investment.’
investments ejusdem
generis with stocks and
shares
Cowan v Scargill Trust concerned was a HELD: the duty of trustees was to act in the best interests of their If there is a legal
[1985] Ch 270 pension fund for beneficiaries, and if the purpose of the trust was the provision of financial requirement for
employees and former benefit, a power of investment had to be exercised so that their funds trustees to make
Duty of employees of the National yielded the best return. The NUM trustees breached their fiduciary duty by investments in
investment; Coal Board prioritising their ethical judgement over the financial benefit of the 'dishonourable'
ethical Fund managed by half beneficiaries, refusing to concur in the adoption of the investment plan. companies,
considerations in appointed trustees and half The NUM trustees also disregarded the duty to obtain and consider trustees are bind to
investments; National Union of professional advice and not to reject it without good cause. accelerate civil
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