| Assignment problem: Bridget is the beneficiary of a trust established by her grandfather, Alan. Alan appointed his solicitor, Felicity, to act as the trustee. The Trust Document included several clauses including an exemption clause that stated: ‘No trustee shall be liable for any loss or damage which may happen to the fund or any part thereof or the income thereof at any time or from any cause whatsoever.’ In March last year, the trust fund was valued at £350,000. In July, Felicity made several investments. One in LMF Engineering Ltd turned out to be a risky investment and the entire £50,000 invested was lost when LMF Engineering Ltd went into liquidation. A second investment was made in a company, GTK Holdings Ltd. This investment did well and the £50,000 invested turned a profit of £250,000. In reward for her help in securing the investment of £50,000, GTK Holdings Ltd paid Felicity a commission of £25,000. Felicity did not declare this to the trust. Assignent QUESTIONS: Advise Bridget on the following: 1) The applicability of the exemption clause in relation to the investment in LMF Engineering Ltd. and what, if anything, might be done to recover the £50,000 from Felicity. 2) What claim, if any, she might back over the £25,000 commission paid to Felicity by GTK Holdings Ltd. |
