Re Londonderry's Settlement
| Re Londonderry's Settlement | |
|---|---|
| Court | Court of Appeal |
| Citation | [1965] Ch 918 |
| Keywords | |
| Fiduciary duties, information | |
Re Londonderry's Settlement [1965] Ch 918 is an English trusts law case concerning the duty of trustees to provide information to beneficiaries. It has been heavily criticised and possibly doubted by Schmidt v Rosewood Trust Ltd.[1]
Facts
[edit]A beneficiary did not like the small sums proposed to be distributed to her. She wanted information about the reasons for the decision.
Judgment
[edit]The Court of Appeal held that there was no need for disclosure of reasons, because it could cause family strife, fruitless litigation or make the trustees’ role impossible.
See also
[edit]- Schmidt v Rosewood Trust Ltd [2003] UKPC 26
- Hartigan Nominees v Rydge (1992) 29 NSWLR 405, Kirby P said it would not be unduly burdensome for professional trustees to provide reasoned decisions and that would be likely to cause less strife than no reasons at all.
- Hawkesley v May [1955] 3 WLR 569, obligation to inform beneficiaries of their status as beneficiaries when they turn 18.
- Re Manisty’s Settlement [1971] Ch 17, no necessary duty to inform objects of a power of their status, only the primary objects, who are identifiable only as a question of fact
- Murphy v Murphy [1999] 1 WLR 283, a settlor had to provide information to a discretionary beneficiary. A more remote beneficiary may not have gained disclosure.
Notes
[edit]References
[edit]- R Walker, ‘Some Trust Principles in the Pensions Context’ in AJ Oakley (ed) Trends in Contemporary Trust Law (Clarendon, Oxford 1996) 123, 131
- Lord Browne-Wilkinson, ‘Equity and its relevance to superannuation today’ (Leo Cussen Institute) cited in Crown v Stevedoring Employees Retirement Fund [2003] VSC 316, [34]
- DJ Hayton and C Mitchell, The Law of Trusts and Equitable Remedies (Sweet and Maxwell 2005) 9-295, 677, says that in ‘my firm opinion’ it is undermined by Schmidt v Rosewood Trust Ltd on its own terms in family trusts, also citing agreement from Lord Hoffmann and Lightman J.