![]() |
[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback] | |
England and Wales High Court (Chancery Division) Decisions |
||
You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Birdseye & Anor v Roythorne & Co & Ors [2015] EWHC 1003 (Ch) (15 April 2015) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2015/1003.html Cite as: [2015] WLR(D) 169, [2015] EWHC 1003 (Ch) |
[New search] [Printable RTF version] [View ICLR summary: [2015] WLR(D) 169] [Help]
CHANCERY DIVISION
7 Rolls Buildings, Fetter Lane London, EC4A 1NL |
||
B e f o r e :
____________________
JOANNA ELIZABETH BIRDSEYE LUCY-JANE COOKE (Personal representatives of the estate of Rosemary Cooke) |
Claimants |
|
- and - |
||
ROYTHORNE & CO ROYTHORNES LLP ROBERTO MARCO FRANCESCO POLA JOHN WILLIAM DOUBLEDAY NORMA ELIZABETH DRING DRING BROS LIMITED |
Defendants |
____________________
Mr Richard Wilson (instructed by Plexus Law) for the First and Second Defendants
Mr David Halpern QC (instructed by Kenneth Bush Solicitors) for the Third Defendant
Hearing date: 18 March 2015
____________________
Crown Copyright ©
Mr Justice Newey :
Basic facts
"I personally have copies of all documents, emails, referenced to support all of the above. I would be more than happy to complete a Witness Statement with all of the documents attached as appendices to my Witness Statement."
The issues
i) Were communications between Mr Dring's executors and Roythornes privileged as against Mrs Cooke and her estate?ii) Was privilege waived by Mr Doubleday?
iii) Was privilege waived by Mr Pola?
iv) Loss of confidentiality.
Were communications between the executors and Roythornes privileged as against Mrs Cooke and her estate?
"It was contended that [the advice on the exercise of the power] was not taken for the benefit of all the cestuis que trust; but all the cestuis que trust have an interest in the due administration of the trust, and in that sense it was for the benefit of all, as it was for the guidance of the trustees in their execution of their trust. Besides, if a trustee properly takes the opinion of counsel to guide him in the execution of the trust, he has a right to be paid the expense of so doing out of the trust estate; and that alone would give any cestui que trust a right to see the case and opinion."
"There can be no question that the rule is, that where the relation of trustee and cestui que trust is established, all cases submitted and opinions taken by the trustee to guide himself in the administration of his trust, and not for the purpose of his own defence in any litigation against himself, must be produced to the cestui que trust."
However, he went on (at 424):
"[C]onsidering the application as one made by a Plaintiff claiming the estate against Humberston as a trustee, still I am of opinion that he is not entitled to see the cases and opinions until a prima facie case of the relation of trustee and cestui que trust is established. This is simply the case of a claimant who has not made out his title. If Williams is entitled to a production, then any stranger might come and claim the estate and see all the opinions and cases, and a very serious injury might be caused to the persons really entitled to the property."
"A cestui que trust, in an action against his trustees, is generally entitled to the production for inspection of all documents relating to the affairs of the trust. It is not material for the present purpose whether this right is to be regarded as a paramount proprietary right in the cestui que trust, or as a right to be enforced under the law of discovery, since in both cases an essential preliminary is either the admission, or the establishment, of the status on which the right is based. I agree in the view expressed by Peterson J., that the rule as to the right of a cestui que trust to the production of trust documents for inspection does not apply when the question to be tried in the action is whether the plaintiff is a cestui que trust or not."
For his part, Lord Wrenbury focused on the "proprietary right" of a beneficiary to production of trust documents. He observed (at 626):
"If the plaintiff is right in saying that he is a beneficiary, and if the documents are documents belonging to the executors as executors, he has a right to access to the documents which he desires to inspect upon what has been called in the judgments in this case a proprietary right. The beneficiary is entitled to see all trust documents because they are trust documents and because he is a beneficiary. They are in a sense his own….
But this plaintiff cannot as matters stand say that he is a beneficiary. That is the very question to be determined in the litigation."
In a similar vein, Viscount Finlay said that the plaintiff had not even made out a prima facie case that he was a cestui que trust.
"a beneficiary's right to seek disclosure of trust documents, although sometimes not inappropriately described as a proprietary right, is best approached as one aspect of the court's inherent jurisdiction to supervise, and where appropriate intervene in, the administration of trusts."
Was privilege waived by Mr Doubleday?
"Parties who grant a joint retainer to solicitors of course retain no confidence as against one another: if they subsequently fall out and sue one another, they cannot claim privilege. But against all the rest of the world, they can maintain a claim to privilege for documents otherwise within the ambit of legal professional privilege; and because their privilege is a joint one, it can only be waived jointly, and not by one party alone."
"[C]o-executors, however numerous, are regarded in law as an individual person. The same principle applies under a joint grant of administration. Thus, as a general rule, the act of one of joint representatives is regarded as the act of all and is binding unless the case falls within one of the exceptions considered later in this section."
"The son did not purport to bind the estate of the deceased without the concurrence of the widow. He purported to bind the estate for himself, as one administrator, and as the authorised agent of the widow as his co-administrator. He bound himself as one of two administrators and he warranted that he had authority to bind the other administrator, the widow. He did not bind himself to sell without the concurrence of the widow. It was really the reverse. He bound the estate of the deceased only on the assumption, which he warranted to be correct, that he had authority to sign as agent for the widow. That assumption having been falsified, there is no contract to be enforced in relation to the … property. All that may be sued upon is the warranty of authority given by the son."
Was privilege waived by Mr Pola?
"I do not think that a party to a contract can realistically or sensibly be held to have made this irrevocable choice between rescission and affirmation unless he has actual knowledge not only of the facts of the serious breach of the contract by the other party which is the pre-condition of his right to choose, but also of the fact that in the circumstances which exist he does have that right to make that choice which the law gives him."
Similarly, Slade LJ said (at 500):
"Lord Blackburn in Kendall v. Hamilton, 4 App.Cas. 504, 542, said, 'there cannot be election until there is knowledge of the right to elect.' For the reasons given by Stephenson and May L.JJ., I am of the opinion that this statement, which was cited by Lord Porter in Young v. Bristol Aeroplane Co. Ltd. [1946] AC 163, 186, as being the foundation of the principle of election, still correctly represents the law. With Stephenson and May L.JJ., I do not think that a person (such as the plaintiff in the present case) can be held to have made the irrevocable choice between rescission and affirmation which election involves unless he had knowledge of his legal right to choose and actually chose with that knowledge."
Loss of confidentiality
Conclusion