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Wednesday, 30 March 2011 09:26

 

The procedure in relation to Beddoe applications

It has long been recognised that a trustee intending to bring or defend proceedings in his capacity as trustee should first seek directions authorising him to do so.  This is known as a Beddoe application.  As held by Lindley LJ in the case of Re Beddoe, Downes v Cottam [1893] 1 Ch 547: "A trustee who, without the sanction of the Court, commences an action or defends an action unsuccessfully, does so at his own risk as regards costs, even if he acts on counsel's opinion; and when the trustee seeks to obtain such costs out of his trust estate, he ought not to be allowed to charge them against his [beneficiaries] unless under very exceptional circumstances."

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