Nestle v National Westminster Bank
1993 · [1993] 1 WLR 1260
Posted By lanbuk.com
- Facts
- A complained that the bank trustee had managed the fund badly for decades, so it was worth much less than it should be.
- Issue
- Was the bank liable?
- Held
- No. The Court of Appeal held that the bank had acted badly in some respects, but loss caused by the breach was not proved. Trustees must act fairly between income and capital beneficiaries.
- Principle
- Trustees must balance the interests of different beneficiaries, and a claimant must prove loss caused by the breach.
- Why it matters
- It concerns modern investment duties.
Words and Latin in this note
- Beneficiary
- A person entitled to the benefit of trust property in equity, who can make the trustees carry out the trust. Open the note.
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