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