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Thu 31 May 2012
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Trustee not entitled to recoup litigation costs from estate
Mon 13 Feb 2012
The Cripps Trust Corporation Ltd v Sands & Ors case could have ramifications for future disputes over a person's estate.
Beneficiaries of the deceased (S) took legal action against the trustee (T) as they were not happy with how it had handled the assets, which included some valuable works of art.
T had been given a power of appointment with regards to the collection of paintings, although the will did not outline exactly when it should take action.
Since T did not use its power of appointment, S was dissatisfied and argued it should no longer be the trustee of the estate.
T then sought assurances that any of the costs accrued in the subsequent legal proceedings would be covered by the deceased's assets.
However, this was rejected by a court on the grounds that it would be an unusual move.
Jacqueline Major, a solicitor at Winckworth Sherwood who is acting on behalf of S, has described the probate action as "contentious".
"This is a very interesting point of law that arises out of a main action by beneficiaries (S) to remove Cripps Trust Corporation (T) as trustees," she commented.
"T applied to have their costs of part of the main suit - a part relating to construction of a part of a codicil - paid on an ongoing basis from the trust. S opposed, arguing the order sought was an inappropriate prospective costs order in hostile litigation and whether T were allowed their costs should fail to be considered after trial, in the usual way following hostile litigation.
"Mann J agreed that the application should fail and dismissed the application with the costs of the application to be paid by T."
