Gregson v HAE Trustees Ltd and others  EWHC 1006 (Ch)
The High Court held that a trust’s beneficiaries cannot bring claims directly against the directors of the trustee company for that company’s breach of trust in the absence of dishonesty. The judgment was founded on the principle that directors of a corporate trustee do not owe duties directly to the beneficiaries of the trust. In a previous High Court case, HR v JAPT, decided in 1997, it was held that what became known as a “dog-leg” claim was arguable, creating uncertainty regarding the trustee directors’ liability.
The Gregson decision should reassure trustee directors that they will not be personally liable for a trustee company’s breach of trust.
View the judgment.