''Speight v Gaunt'' UKHL_1
is_an_English_trusts_law.html" ;"title="883
UKHL 1
is an English trusts law">883
UKHL 1
is an English trusts law case, concerning the extent of the duty of care owed by a fiduciary.

Facts

Mr John Speight, a Bradford industrialist, had appointed Mr Isaac Gaunt and Mr Alfred Wilkinson as trustees for his estate in his will. The trustees employed a young broker, John Cooke, to invest £15,000 of the estate's money into company shares. The trustees gave over the money. The broker dishonestly took the money for himself, and gave excuses for the delays in getting the company shares. The truth only transpired when Cooke was declared

bankrupt Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

. The beneficiaries of Speight's trust sued Mr Gaunt for failing in his duty of care as a trustee.

Judgment

Court of Appeal

Sir George Jessel MR held that because the trustee acted in the ordinary course of business, he was not liable to make good the loss occasioned by the embezzlement of the trust moneys by the broker. The key part of his judgment stated as follows. Lindley LJ and Bowen LJ gave concurring judgments.

House of Lords

The House of Lords upheld the Court of Appeal. Lord Blackburn said the following:(1883-84) LR 9 App Cas 1, 19-20

Notes

References

External links

* *{{cite web , url=http://www.bailii.org/uk/cases/UKHL/1883/1.html , title=Judgement of the House of Lords , publisher=

BAILII The British and Irish Legal Information Institute (BAILII, pronounced "Bailey") provides legal information, and especially reports of cases decided by courts, in the United Kingdom generally. Decisions from England and Wales, Ireland, Northern ...

, date=26 November 1883 English trusts case law House of Lords cases 1883 in British law 1883 in case law