Defences of conflict of interest Flashcards Preview

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Flashcards in Defences of conflict of interest Deck (8)
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1
Q

Johnstone v Macfarlane

A

Conflict of interest is authorised by the truster

Sanctions are strictly construed

Where a power to sell trust property to any beneficiary was held not to include a power to sell to a trustee who was also a beneficiary

2
Q

Coats Trs Ptrs

A

Conduct of interest authorised by truster

It was held that a power to fell to any beneficiary did include the power to sell to a beneficiary who was also a trustee

3
Q

Sarris v Clark

A

Conflict of interest authorised by truster

Modern case

Testator was a farmer who appointed his wife to be the executrix of his will, shortly before death he entered into contract of co-partnery with how wife in which he granted the leases of the farms too

His wife was obviously on both sides of negotiations in different capacities but it was held this would not be a breach of trust

4
Q

Corsar v Mathers

A

In the absence of authority from the truster, the trustees may obtain the sanction of the consent of all the beneficiaries and potential beneficiaries to the transaction

A beneficiary was held entitled to not be entitled to object to a trustee being paid for work done for the trust because the beneficiary has approved in the employment of the trustee and had approved accounts containing charges of work

5
Q

Taylor v hills house trs

A

In abscence of authority from truster

Onus will fall on the trustee to show that the beneficiaries acted freely and said their consent was suitably formed

6
Q

Coats trs

A

Held that you don’t always need consent - unusual case

Trustees of the deceased party wished to sell some of the trust assets including paintings

One of the trustees who was a son of the truster wanted to buy these paintings so asked for a petition and this was granted because none of the beneficiaries said anything

The beneficiaries had consented to the sale anyway so it didn’t matter

7
Q

Martin v city of Edinburgh district council

A

Requirement of proper motivation

Edin DC we’re trustees in respect of several trusts and took a policy decision to sell the trust funds in SA because they had political antipathy at this time to the government in SA

Decision was challenged and it was held that it was a breach of trust as the council had been motivated by their own values

8
Q

Flint v Glasgow Corporation

A

Requirement of proper motivation

Town council decided to benefit the community by implementing phones in councillors houses around Glasgow to aid communication with councillors

The phones were to be paid out of the common good which was a fund held in trust for the councillors of the burugh
This was challenged by the auditor
Even tho the councillors were advantaged it did not matter because it was small and therefore no breach of fiduciary duty