High Court Preserves Indemnity For Unsuccessful But Honest Executor Removal Applicants
In Shufflebotham & Anr v Shuff-Wentzel the claimants, two of three executrices, applied to replace all executors and trustees and to remove the defendant, the third executrix. HHJ Charman, sitting as a High Court judge, permitted the claimants to resign but refused to remove the defendant, appointing a professional trustee to act alongside her and a family representative. The defendant was the overall successful party entitled to her costs. The court was required to determine whether the claimants should pay those costs personally and whether they could recoup them from the estate. Applying Re Buckton and Price v Saundry, the judge characterised the proceedings as hostile litigation closest to a ‘beneficiaries dispute’, making the claimants jointly and severally liable personally. However, examining their conduct against the principles in Lewin on Trusts, the judge held they had acted honestly and reasonably in bringing necessary proceedings to address a genuine deadlock. Their right to indemnity from the estate was preserved, entitling them to recoup the costs paid.