Wilful Default in UK Law

Leading Cases
  • Armitage v Nurse
    • Court of Appeal (Civil Division)
    • 19 Marzo 1997

    A trustee is said to be accountable on the footing of wilful default when he is accountable not only for money which he has in fact received but also for money which he could with reasonable diligence have received. It is sufficient that the trustee has been guilty of a want of ordinary prudence: see, for example, Re Chapman [1896] 2 Ch. 763. Nothing less than conscious and wilful misconduct is sufficient.

    A trustee who is guilty of such conduct either consciously takes a risk that loss will result, or is recklessly indifferent whether it will or not. If the risk eventuates he is personally liable. But if he consciously takes the risk in good faith and with the best intentions, honestly believing that the risk is one which ought to be taken in the interests of the beneficiaries, there is no reason why he should not be protected by an exemption clause which excludes liability for wilful default.

    I accept the submission made on behalf of Paula that there is an irreducible core of obligations owed by the trustees to the beneficiaries and enforceable by them which is fundamental to the concept of a trust. If the beneficiaries have no rights enforceable against the trustees there are no trusts.

  • Claire Henchley and Others v David Brian Thompson
    • Chancery Division
    • 16 Febrero 2017

    Section 21(3) of the 1980 Act applies to an action by a beneficiary to recover trust property or in respect of any breach of trust. Plainly the former is not applicable and, to my mind, neither is the latter. The Claimants' case is not put forward on the basis that, by failing to account, the Defendant has acted in breach of trust but, rather, by virtue of his obligation to account which they seek to enforce.

  • Alghussein Establishment v Eton College
    • House of Lords
    • 05 Mayo 1988

    There was nothing in any of them to suggest that the foregoing proposition was limited to cases where the parties in breach were seeking to avoid the contract and I can see no reason for so limiting it. A party who seeks to obtain a benefit under a continuing contract on account of his breach is just as much taking advantage of his own wrong as is a party who relies on his breach to avoid a contract and thereby escape his obligations.

    Even if it were appropriate to imply the provision of clause 3(b) into any lease to be granted under the proviso to clause 4, and I make this assumption without deciding the matter one way or the other, there remains the question whether in the words of Lord Diplock in Cheall [1983] 2 A.C. 180 the agreement contains clear express provisions to contradict the presumption that it was not the intention of parties that either should be entitled to rely on his own breach in order to obtain a benefit.

  • Deutsche Bank AG v Sebastian Holdings Inc.
    • Queen's Bench Division (Commercial Court)
    • 08 Noviembre 2013

    It is SHI's case that it was DBAG's breaches of contract which led to the close out and the termination of the Agreements, including the FX ISDA which was only terminated recently. It is also SHI's case that DBAG's terminations were wrongful. Breaches were alleged of the FXPBA, which refers to the FX ISDA, of the FX ISDA itself, of the Equities PBA and the Equities ISDA (as well as the oral agreements and the Listed F&O Agreement).

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  • Trustee Act 1893
    • UK Non-devolved
    • 1 de Enero de 1893
    ......, nor for any other loss, unless the same happens through his own wilful default; and may reimburse himself, or pay or discharge out of the trust ......
  • Trustee Act 1925
    • UK Non-devolved
    • 1 de Enero de 1925
    ...... .   . ( b . ) to take any proceedings on account of any act,. default, or neglect on the part of the persons in. whom such securities or other ...happens through his own wilful default. . (2) A trustee may reimburse himself or pay or. discharge out ......
  • Income Tax Act 1952
    • UK Non-devolved
    • 1 de Enero de 1952
  • General Rate Act 1967
    • UK Non-devolved
    • 1 de Enero de 1967
    ......authority have refused or through wilful neglect or wilful. default failed to raise that amount by a rate, or that, ......
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Books & Journal Articles
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Law Firm Commentaries
  • Commercial Contract Law: What Happened In 2016 - Thinkhouse Foundations
    • Mondaq UK
    ...... contract law over the last 12 months including key topics such as wilful default - and of course a little bit of Brexit. Mike Reed: My name is ......
  • Exclusion of deliberate acts in insurance policies (UK)
    • LexBlog United Kingdom
    A June 2021 UK Supreme Court judgment has highlighted the difficulties insurers may face when relying on a intentional or deliberate acts exclusion. A bouncer at a pub in Aberdeen, Scotland had app...
    ...... the insurer’s “liability arising out of deliberate acts wilful default or neglect” of an employee of the insured. The insurer argued ......
  • Man Over Board: Was It Suicide?
    • Mondaq UK
    ...... the death of its employees unless, in its opinion, the loss was by "wilful default" (i.e. suicide). BP concluded that the most likely explanation for ......
  • Alliancing Thriving Post Recession
    • Mondaq UK
    ...... to this is typically in the sphere of what is referred to as wilful default. The relevant provision might look something like:. 'No failure ......
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