Personal claim for compensation against a trustee who is in breach of trust - Rights to indemnity or contribution?
3 important questions on Personal claim for compensation against a trustee who is in breach of trust - Rights to indemnity or contribution?
Explain how a trustee who is sued for the entire loss is able to claim a contribution from his co-trustees?
The trustee can claim a contribution from his co-trustees who are in breach under s 2 of the Civil Liability (Contribution) Act 1978. The court may order a fair and equitable contribution in relation to each of the trustee's responsibility for the loss.
Explain the first example of fraud and how that allows a trustee to seek full indemnity (recover compensation)?
The trustee is entitled to a full indemnity from co-trustees where they acted fraudulently and used trust property for their own benefit (Bahin v Hughes).
Can a trustee seek full indemnity if they blindly followed the advice of a professional such as a solicitor?
If a trustee blindly follows the advice of a solicitor- trustee, the trustee can recover full indeminity (Re Parkington). However, it is not enough to show that the co-trustee was a solicitor. The trustee must prove that the solicitor-trustee was a controlling influence on their judgment (Head v Gould)
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