Fletcher v Collis
A beneficiary who consents to a breach of trust cannot sue the trustee for the resulting loss.
Facts
Under a marriage settlement, the husband had a life interest in the trust fund. At the request of the husband, and with the consent of his wife, who was also a beneficiary, the trustee sold the trust investments and paid the proceeds to the husband, who spent them. When the wife and children later sued the trustee, he relied on the wife's consent as a defence.
Legal principle
The Court of Appeal held that the trustee was not liable to the wife, because she had consented to the breach of trust. Romer LJ said that a beneficiary who has concurred in or consented to a breach of trust cannot afterwards complain of it against the trustee. However, the consent of one beneficiary does not prevent other beneficiaries who did not consent from suing. The trustee was also not liable for the loss of income during the husband's life, because the husband had consented.
Related cases on breach of trust and defences
- AIB Group (UK) plc v Mark Redler & Co [2014] UKSC 58, [2015] AC 1503
- Armitage v Nurse [1998] Ch 241
- Bahin v Hughes (1886) 31 Ch D 390
- Re Dawson (deceased) [1966] 2 NSWR 211
- Re Diplock [1948] Ch 465
- Re Evans (deceased) [1999] 2 All ER 777
- Head v Gould [1898] 2 Ch 250
- Ministry of Health v Simpson [1951] AC 251
Studying equity and trusts? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.
This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
