Personal claim for compensation against a trustee who is in breach of trust - Any relief from liability? (defences) - Section 61 of the Trustee Act 1925
3 important questions on Personal claim for compensation against a trustee who is in breach of trust - Any relief from liability? (defences) - Section 61 of the Trustee Act 1925
Explain how the liable trustee can have a defence under s.61 of the Trust Act 1925?
Under s.61 the trustee can be relieved of liability (wholly or partly) if they can prove that they acted honestly and reasonably. The court then decides whether the trustees ought fairly to be excused (Santander UK PLC v RA Legal Solicitors).
Are the courts willing to allow the defence of honesty under s.61 if the trustee was acting in a professional capacity?
The courts will not grant relief to professional trustees (Bartlett v Barclays Trust Co Ltd) even if they sought advice (National Trustee Co of Australia Ltd v General Finance Co).
Are the courts likely to relive passive trustees?
The courts are unlikely to relieve passive trustees.
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