Liability of PRs

Question 1

when will a PR be personally liable? explain each

Answer 1

o Contract = PRs can be personally liable for contracts they enter into where they have not made it clear they are acting on behalf of the estate. They cannot limit their liability to the assets of the estate but may be able to claim an indemnity back from the estate.
o Tort = PRs are personally liable for any torts they commit (e.g. negligence)
o When they have breached their duty which causes loss to the estate (devastavit)

Question 2

who can bring a devastavit claim and on what grounds? Give an example for each of the grounds

Answer 2

can be brought by B or a creditor where the PRs actions has caused loss to the estate. Grounds:
o Misuse of assets (i.e. taking assets for own use)
o Maladministration (i.e. paying out legacies + not reserving money for debts)
o Breach of fiduciary duty (i.e. self-dealing)
o Negligence (i.e. failing to invest)

Question 3

what are the different reliefs from liability? explain each (4)

Answer 3

Express relief = provision in the Will PR will not be liable for loss

Statutory relief = the court has discretion to totally/partially relieve the PR from liability where they have acted honestly and reasonably and ought to be excused

Common law relief = if B/creditor had full knowledge and consented to the breach the PR will not be liable (acquiescence)

Limitation defence
o Creditors  6 years from the date the estate was distributed (the cause of action)
o Bs  12 years from the date the right to receive the property arise

Question 4

what liability do PRs have for D’s obligations? What is the effect of this?

Answer 4

PRs become responsible for contracts/obligations D entered into in their lifetime, but they are only liable up to the value of the estate in their control

this means PRs can be sued/sue on D’s behalf