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You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Dick and Others Petitioners [1899] ScotLR 37_232 (16 December 1899)
URL: http://www.bailii.org/scot/cases/ScotCS/1899/37SLR0232.html
Cite as: [1899] SLR 37_232, [1899] ScotLR 37_232

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SCOTTISH_SLR_Court_of_Session

Page: 232

Court of Session Inner House First Division.

Saturday, December 16. 1899.

37 SLR 232

Dick and Others     Petitioners.

Subject_1Trust
Subject_2Petition for Removal of Trustee
Subject_3Appointment by Court of New Trustee
Subject_4Nobile Officium.
Facts:

The two surviving trustees under a postnuptial contract of marriage and trust-settlement having failed to agree as to the management of the trust-estate, a petition was presented to the Court by one of them, with the concurrence of all the beneficiaries under the trust, for the removal of the other trustee, or alternatively for the appointment of a new trustee named by the petitioners to act upon the trust. The ground upon which the petitioners supported their petition was, that owing to the refusal of the respondent to sign the discharge of a bond the affairs of the trust were at a deadlock.

After the petition had been presented the discharge in question was signed by the respondent. The respondent, in answers lodged by him, objected to the appointment of the trustee named by the petitioners, but in the course of the debate he intimated that he had no objection to him personally, and that he would assent to his being assumed as an additional trustee.

The Court refused the prayer for removal, but appointed the new trustee named by the petitioners.

Headnote:

A petition was presented by Mr John Dick, trustee acting under the postnuptial contract of marriage and trust-settlement of

Page: 233

Mrs Janet Robertson and her husband, the late Dr George Robertson, and by the said Mrs Robertson and her son Cecil James Robertson, the beneficiaries under the trust, craving the Court “to remove Alexander Mitchell Carnwath Dick from the office of trustee under the said postnuptial contract of marriage and trust-settlement of the said Mrs Janet Train Lawrie or Robertson and George Robertson, or otherwise to appoint David Robertson as a trustee under said contract of marriage, with the powers contained therein, and in the statute, including a power to assume new trustees.” Dr Robertson died in 1883 survived by his wife, and Messrs John Dick, Peter Robertson, and William Milne accepted office as trustees, and continued to act as such till the death of the two last-named gentlemen. Thereafter in December 1886 Mr John Dick assumed his son Alexander Mitchell Carnwath Dick as a trustee under the trust.

The present petition was presented by Mr John Dick, with the concurrence of the liferentrix Mrs Robertson and of her son Cecil James Robertson, the only other beneficiary under the trust.

The petitioners averred “that in or about May 1897 the agent in the trust having forwarded to the said Alexander Mitchell Carnwath Dick for his approval a proposal for loan of part of the trust-funds, he, in answer, replied on 15th May 1897—‘Robertson's M.C. Trust. I return the proposal for loan of £300. I really do not see what's the good of me bothering with this trust, and do not longer wish to act as trustee. You can date my resignation therefore from the time of the last loan.’ Thereupon a formal minute of resignation was forwarded to him for his signature, but he has not signed or returned the said deed. That part of the trust investments consists of a bond for £150 over a property in Argyle Place, Edinburgh, which loan fell to be paid off in terms of notice at Martinmas 1899. A discharge of the said bond was on 31st October 1899 forwarded to the said Alexander Mitchell Carnwath Dick for his signature as trustee foresaid, and although requested to return the deed signed he refused to do so, or even to answer the communications. The want of the said discharge is causing loss and inconvenience not only to the trust but to the borrower. That the administration of the trust has thus been brought to a standstill, and will so remain unless the said Alexander Carnwath Dick is removed or some other person assumed to act along with him and the petitioner, the said John Dick.”

Answers were lodged by Alexander Dick, who denied that the administration of the trust had been brought to a standstill, or that he had refused to sign the discharge of the bond referred to by the petitioners. He stated that he had reason to complain of certain conduct of the agent of the trust, and averred that the sole object of the petition was to enable the trust to be brought to a close by paying over the trust funds to the petitioner Mr Cecil James Robertson, which course, he was of opinion, could not be safely followed till after the death of the liferentrix, and that he objected to the appointment of Mr David Robertson, who was the uncle of Mr Cecil Robertson, on that ground. After the presentation of the petition the discharge of the bond in question was duly signed by the respondent.

The petitioner argued that as the trust had come to a deadlock the respondent should be removed, or failing that course that a new trustee should be appointed to act along with himself and the respondent— Aikman and Others, Petitioners, Dec. 2, 1881, 9 R. 213.

The respondent in the course of the discussion intimated his willingness to assent to the assumption of Mr David Robertson as an additional trustee, on the understanding that he would follow the opinion of the Solicitor-General as to the winding up of the trust. He argued that the petition was uncalled for, and should be dismissed.

Judgment:

Lord President—It seems to me that there are scarcely sufficient grounds for removing the respondent from the office of trustee. His letter of 15th May 1897, followed by his declinature to sign the minute of resignation, would prima facie go far to warrant his removal, but it appears that he is now willing to continue in the trust, not for the purpose of obstructing, but of co-operating in, its due administration. I think we may accept his disclaimer of adherence to the attitude which he formerly assumed, and refuse the prayer for his removal. But it is plain that the trust administration had come to a dead lock when the petition was presented, and although it is to be hoped that the relations of the present trustees towards each other may now be more cordial than they have hitherto been, there is no security that this will be so. Accordingly, it seems to me that there should be a third trustee. I understand that respondent has no objection to Mr Robertson—indeed, his counsel intimated that he is now willing to assume him. Under these circumstances I think the best course will be to appoint Mr Robertson as a trustee, so that there will be an odd number of trustees, and the risk of a deadlock in future will be avoided.

Lord M'Laren—I am of the same opinion. I am not satisfied that the respondent had any justifiable ground of complaint against the trust administration, unless on the one point of the deposit-receipt being taken in the name of the agent. There is certainly no proof that the other trustee desired to wind up the trust prematurely. What is disclosed by the correspondence is that in consequence of a claim or wish expressed by the beneficiaries that the capital should be divided, the trustees proposed to take the opinion of counsel. That seemed to be an entirely proper position on the part of the trustees.

Lord Adam and Lord Kinnear concurred.

The Court pronounced this interlocutor—

“Refuse the prayer of the petition in so far as it craves the removal of the

Page: 234

respondent the said Alexander Mitchell Carnwath Dick from the office of trustee under the postnuptial contract of marriage and trust-deed of settlement of Doctor and Mrs George Robertson, and of consent appoint David Robertson, Esquire, 4 Maitland Street, Edinburgh, to be a trustee under said contract of marriage and deed of settlement, with the powers contained therein and in the Trust (Scotland) Act 1867, including the power to assume new trustees: Further, authorise the said trustees to complete a title habili modo to the trust-estate set forth in the prayer of the petition: Allow the expenses of the petitioners to be taken out of the funds of the trust-estate: And quoad ultra find no expenses due to or by any of the parties, and decern.”

Counsel:

Counsel for the Petitioner— C. D. Murray. Agent— Marcus J. Brown, S.S.C.

Counsel for the Respondent— J. D. Millar. Agents— Duncan & Black, W.S.

1899


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