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Scottish Court of Session Decisions


You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Thom and Others v. Macbeth and Others [1875] ScotLR 13_94 (26 November 1875)
URL: http://www.bailii.org/scot/cases/ScotCS/1875/13SLR0094.html
Cite as: [1875] ScotLR 13_94, [1875] SLR 13_94

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SCOTTISH_SLR_Court_of_Session

Page: 94

Court of Session Inner House First Division.

Friday, November 26. 1875.

[ Lords Mackenzie and Young.

13 SLR 94

Thom and Others

v.

Macbeth and Others.

Subject_1Property
Subject_2Division and Sale
Subject_3Pro indiviso proprietors.
Facts:

In an action for the sale and division of a pro indiviso estate— held that where a division cannot be made having a due regard to the interests of all concerned, no pro indiviso proprietor can insist upon such a division, but that the estate should be sold, parties having a right to appear as offerers at the sale.

Headnote:

This was an action at the instance of Catherine Thom, Mrs Thom or Annan, and her husband James Annan, all residing in Rothesay, against Daniel Macbeth, writer in Rothesay (both as trustee under a trust-disposition and settlement executed by the deceased Robert Thom of Ascog, cotton-spinner in Rothesay, father of the female pursuers, and as an individual), and also against the children of Mr and Mrs Annan, and certain other parties interested in the estate of the late Robert Thom.

The summons concluded for a sale of the estate of the deceased Robert Thom, or, in the event of its being found that a sale was inexpedient, then that the estate should be divided in certain proportions amongst the pursuers and the defender Daniel Macbeth, who was himself entitled to a certain share as pro indiviso proprietor, and also bound as trustee to hold certain shares for Miss Thom and Mrs Annan. Several parties at first appeared to oppose this action, but in the later stages of the case Mr Macbeth and his son Daniel Macbeth junior were the only defenders.

The defenders disputed the title of the pursuers to bring this action, and also maintained that in any view they were not entitled to insist upon a sale of the estate. On 5th December 1872 the Lord Ordinary ( Mackenzie) found for the pursuers upon the matter of title, and although a reclaiming note was presented by the defenders it was afterwards withdrawn. Accordingly the sole question came to be, whether, on the one hand, the pursuers were entitled to have the estate sold, or, on the other, the defender could insist upon a division.

A report was given in by Mr Hugh Kirkwood, to whom a remit had been made, in which he stated that in his opinion the estate was “incapable of division in the proportions referred to without great depreciation of value.” Afterwards, upon a second remit being made, he adhered to his original report. Mr Macbeth maintained that he was entitled to have a proof at large for the purpose of establishing the expediency of a sale; but this was refused by the Lord Ordinary on the ground that Mr Macbeth had acquiesced in the remit to Mr Kirkwood, and had taken part in the proceedings under that remit. The Lord Ordinary accordingly, on 9th June 1874, found that a sale of the estate was proper and necessary, and afterwards remitted to Mr W. S. Fraser, W.S. to prepare and lodge in process a draft of the articles and conditions of roup. As

Page: 95

that gentleman reported that the whole of the estate was not included in the summons, a supplementary action was brought to which similar defences were lodged by the Messrs Macbeth. Lord Young, acting for Lord Mackenzie, conjoined the actions upon 19th May 1875, and afterwards, upon 7th July, issued an interlocutor finding that the subjects included in the supplementary action should also be sold. Against these interlocutors of Lords Mackenzie and Young, approving of a sale, the defenders reclaimed.

Argued for them—The defenders are entitled to insist upon a division in virtue of their rights as pro indiviso proprietors, assuming that the subject possessed is physically capable of division. They are not barred by the reports of Mr Kirkwood, as the remit to him was “before further answer,” and there was therefore a reservation of any objections on their part.

Argued for pursuers—The reports of Mr Kirkwood are conclusive upon the subject of the expediency of a sale, and the defenders cannot now object to them. A division cannot be insisted upon if it be prejudicial to the estate.

Authorities— Brock v. Hamilton, Jan. 27, 1852, reported as a note to Anderson v. Anderson, Mar. 17, 1857, 19 D. 701, Stair iv. 3, 12, Bell's Com. i. 62–3, Justinian's Institute, 6, 20; Bryden v. Qibson, Feb. 4, 1837, 15 S. 487; Craig v. Fleming, March 14, 1863, 1 Macph. 612; Dickson v. Monkland Canal Coy. H. L., June 29, 1825, 1 W. and S., 636; Wilson v. Struthers, Feb. 10, 1837, 15 S. 523.

At advising—

Judgment:

The Lord Justice-Clerk—The only question in this case is whether the property admits of a reasonable division so as to protect the just interest of all concerned. What Lord Mackenzie did was to make a remit to an able man of skill to report, and he reported that in the circumstances such a division was next to impossible. I imagine that that is conclusive upon this question.

If it be the fact that it is next to impossible to divide this property, there must be a sale. But it is right that Mr Macbeth, who is insisting upon a division, should have an opportunity of bidding at the sale, and I propose that we should make a remit to proceed in the cause with the view of allowing the parties to bid at the sale.

Lord Ormidale—As to the competency of an action of division and sale at the instance of a joint proprietor, there can be no doubt; it would be impossible to maintain that it is not competent. The joint proprietors are not bound to remain in the union against their will. But the question is, upon what principle is such a union to be dissolved? It was maintained that if it was physically possible to divide the subject there must be a division, but I think, looking to the authorities, and especially to the case of Fleming, that where a division cannot be made having a just regard to the interests of all the parties concerned, it cannot be insisted upon. It is always a matter of degree. Such a division might in some cases cause great sacrifice, and here it is reported to us that it is not practicable. The interests of Mr M'Laren's clients, who are of opinion that the property should be preserved, will be sufficiently protected by their having an opportunity of purchasing at the sale, and I understand that your Lordship would approve of a clause in the articles of roup to the effect that any one of the parties may appear at the roup and bid.

Lord Gifford—I agree with your Lordships. I think that in this case the proper remit has been made. The true criterion is the interest of all concerned, for almost any subject is capable of division. It has been determined by a fit and proper person that it would be inexpedient in the circumstances to divide this property, and it appears to be next to impossible to adjust the interests of the various parties on the theory of a division. But it is quite competent for a pro indiviso proprietor to appear as an offerer at the sale. Allow me, however, to add this, to prevent misunderstanding, Mr Macbeth appears here in two capacities, but he can only bid in his individual character.

Lord Neaves was absent.

The Court pronounced the following interlocutor:—

“The Lords having held counsel on the reclaiming note for Daniel Macbeth and another against Lord Young's interlocutor of 7th July, 1875, refuse said note, and adhere to the interlocutor complained of, and remit the cause to the Lord Ordinary to proceed with the same: find the reclaimers liable in expenses since the date of the interlocutor complained of, and remit to the Auditor to tax the same and to report, and to his Lordship to decern for the expenses now found due.”

Counsel:

Counsel for Pursuers— Balfour— Wallace. Agents— Gibson— Craig, Dalziel & Brodies, W. S.

Counsel for Defenders— Dean of Faculty (Watson)— M'Laren. Agents— J. & A. Peddie, W.S.

1875


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