Bartlett v Barclays Bank Trust Co

Facts

A bank trustee held most of the shares in a company, which entered a speculative property development and lost heavily. The bank did not get information or intervene.

Issue

Was the bank liable?

Held

Yes. Brightman J held that a professional trustee is held to a higher standard, and the bank should have used its control to get information and stop the gamble.

Principle

A paid professional trustee owes a higher standard of care.

Why it matters

It is the leading case on professional trustees.

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