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X (Claimant) and (1) A; (2) B; (3) C (Defendants)

Country/Territory
United Kingdom
Type of court
Others
Date
Mar 29, 2000
Source
UNEP, InforMEA
Court name
High Court of Justice
Seat of court
London
Judge
Arden
Reference number
2000 EWHC Ch 121
Language
English
Subject
Legal questions, Land & soil
Keyword
Liability/compensation Polluted soil cleanups
Abstract
This was a trustee’s application for directions by the Court. The trustee was the sole trustee of the will of the testator, who died leaving his residuary estate, including land, on trust for his widow for life with remainder to his children. The Defendants were absolutely entitled to the residuary estate. The application arose out of concerns over the potential effect of the Environmental Protection Act 1990, which when brought into force would impose a new and far-reaching liability regime on owners of land and others for cleaning up contaminated land. The trustee sought directions, among others, as to whether it had a lien over the trust fund for liabilities, including future and contingent liabilities, in respect of land held by the testator, and whether it should notify the beneficiaries where practicable of the proposed exercise by it of its powers of investment. The court analyzed the corresponding regulatory framework and concluded that a trustee had a lien over the trust fund for his proper costs and expenses extending to an indemnity against all future liabilities of the trustee as such. Furthermore, it held that the wide powers of investment did not displace the duty to act with prudence and fairly as between the beneficiaries. It had to act in an even-handed way, taking into account the different rights and interests of the parties in the trust assets. Whilst the trustees could not be obliged to act under the direction of the beneficiaries it remained proper to require the trustees to consult with them on such decisions. The trustee should consider any comments which the beneficiaries made, and take them into account to the extent appropriate.
Full text
COU-144022E.pdf