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Scottish Court of Session Decisions


You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Gibson's Trustees v. Gibson [1899] ScotLR 36_777 (27 June 1899)
URL: http://www.bailii.org/scot/cases/ScotCS/1899/36SLR0777.html
Cite as: [1899] SLR 36_777, [1899] ScotLR 36_777

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SCOTTISH_SLR_Court_of_Session

Page: 777

Court of Session Inner House First Division.

Tuesday, June 27. 1899.

[ Lord Kincairney, Ordinary.

36 SLR 777

Gibson's Trustees

v.

Gibson.

Subject_1Expenses
Subject_2Reclaiming-Note
Subject_3Expenses of Unsuccessful Party
Subject_4Construction of Deed.
Facts:

An action of multiplepoinding was raised for the purpose of construing a deed of which the Lord Ordinary in his judgment stated that “the deed is in my opinion exceedingly ill formed, and it is very difficult to arrive at its true construction.” The Lord Ordinary allowed all the parties in the case their expenses out of the fund in medio. An unsuccessful party reclaimed against the Lord Ordinary's interlocutor on the merits of the case, and the First Division adhered to the interlocutor reclaimed against. On a motion for expenses, the Court (while indicating that it must not be supposed that as a general rule an unsuccessful party who had been allowed his expenses in the Outer House would receive the same allowance in the Inner House), in view of the exceptional nature of the case ( diss. Lord M'Laren) granted the unsuccessful reclaimer his expenses out of the fund in medio.

Headnote:

An action of multiplepoinding was raised at the instance of the trustees of the late William Gibson for declarator that the pursuers were only liable in once and single payment of the means and estate belonging to William Gibson, which had been conveyed to the pursuers as trustees under his trust-disposition and settlement dated 11th October 1867; and for the exoneration and discharge of the pursuers.

The following account of the nature of the action and of the clauses of the trust-deed to be construed is taken from the opinion of the Lord Ordinary:—“This is a multiplepoinding brought by the trustees of William Gibson, who died in 1868, survived by his widow, who died in 1897. She liferented the whole estate, and on her death it became necessary to divide the estate; and this multiplepoinding has been brought for the determination of the questions which have arisen in regard to the construction of his disposition and settlement.

The third purpose of the trust-deed relates to the widow's liferent, and is not material to the questions now to be decided. These depend upon the fourth and fifth

Page: 778

purposes, which are quoted in full in the record. By the fourth purpose the trustees are directed to hold the estate and pay the income of it to the truster's two daughters, Elizabeth, afterwards Mrs Wilson, and Margaret, ‘equally until the youngest of them reaches the age of fifty years complete, on which event’ the truster directed his trustees to ‘convey to them equally in fee, and to the heir of the last survivor of them my whole heritable estate above disponed as their own absolute property.’ These provisions were declared to be in satisfaction of legitim.

The fifth purpose of the trust is as follows:—‘In the event of the failure of the said Elizabeth Gibson and Margaret Gibson, or the issue of their bodies, my said trustees are hereby directed to assign, dispone, convey, and make over the whole estate, both heritable and moveable, above conveyed, to and in favour of the said James Gibson, accountant, Clydesdale Bank, Muirkirk, and Mrs Baird or Vass, spouse of Andrew Vass, miner, Lugar, and the issue of their respective bodies equally per stirpes.’

What has happened is that the truster's two daughters survived him, but neither attained the age of fifty. Margaret died in 1872 unmarried. Elizabeth, who became Mrs Wilson, died in July 1883 intestate. She was survived by one child, who died in infancy in September 1883, being his mother's heir. James Wilson, her husband, survived his son and was his heir, and died in December 1883. James Gibson, mentioned in the fifth purpose, died on 11th November 1896, thus predeceasing the widow. Mrs Vass is dead, but I do not think the exact date of her death is mentioned. She has been survived by two children, John Vass and Mrs Macdougall, who are claimants.

The claimants are (1) the heir and next-of-kin of James Wilson, husband of Elizabeth Gibson, daughter of the truster. They represent him and say that he represented his wife through her son; (2) James Gibson's trustees; and (3) John Vass and Mrs Macdougall.

Wilson's representatives, i.e., the representatives of Elizabeth Gibson, maintain that the estate vested in her and her sister a morte testatoris, and in her as the survivor of the two; or otherwise they claim under the destination to Elizabeth Gibson's heirs. As a third alternative they claim that if these claims be rejected that part of the estate destined to James Gibson has fallen into intestacy.

Gibson's trustees maintain that the vesting took place on the death of the survivor of the two daughters.

John Vass and Mrs Macdougall maintain that there was no vesting until the death of the widow.”

The Lord Ordinary on the 26th July 1898 pronounced an interlocutor whereby he, inter alia, repelled the claims of Mr Thomas Wilson and Miss Elizabeth Wilson (heir and next-of-kin of Mr James Wilson), and found “that the expenses fall to be paid out of the fund in medio.”

His Lordship in the course of his opinion said—“The deed is, in my opinion, exceedingly ill framed, and it is very difficult to arrive at its true construction.”

Mr Thomas Wilson reclaimed, and the First Division on 27th June 1899 adhered to the interlocutor of the Lord Ordinary.

Counsel for the reclaimer moved for expenses out of the fund in medio, on the ground that owing to the obscurity of the trust-deed he was justified in subjecting to review the decision of the Lord Ordinary.

Judgment:

Lord Adam—I hope it will not be considered in ordinary cases that a party who had been found entitled to expenses in the Outer House incurred in the construction of a deed will also be granted these as a matter of course in the Inner House. I think, however, that this is a very exceptional case owing to the confused nature of the deed, the construction of which the Lord Ordinary says he has found to be very difficult. I am of opinion therefore that we should treat it as an exceptional case, and allow the reclaimer his expenses out of the fund.

Lord M'Laren—I am unable to see that the reclaimers are entitled to expenses out of the estate. I do not think that the Lord Ordinary's observation as to the difficulty of the case was intended to suggest that it was a proper case for review in the Inner House. The difficulty pointed out by the Lord Ordinary was in determining what is the true construction of an obscurely-worded deed which raises no question of legal principle proper for discussion in the Inner House. I may add that the value of the cause is not such as to make it suitable for review. It is, I think, a case where the parties should have been content with the decision of a judge who has bestowed great care on its consideration, and has fortified his opinion by citation of all the authorities bearing on the point in dispute.

Lord Kinnear—I agree that in general it ought not to be supposed that if an ununsuccessful party has been allowed his expenses in the Outer House it follows that there will be the same allowance in the Inner House. I assent entirely to Lord M'Laren's view that in an ordinary case it might be expected that a reasonable litigant should accept the judgment of the Lord Ordinary or carry the case further at his own expense. But I agree with Lord Adam that this is an exceptional case, inasmuch as the Lord Ordinary has not only stated that he found it very difficult to arrive at the true construction of the deed, but has shown by an elaborate argument that the construction which on the whole he preferred was at least open to question. In such circumstances the general rule is that where expense is occasioned by the fault of a testator in failing to express his intentions with reasonable clearness his estate should bear the burden. In the present case, because of the difficulty which has embarrassed the Lord Ordinary, I think

Page: 779

we should allow the parties their expenses out of the fund.

The Lord President was absent.

The Court adhered, and allowed all parties their expenses out of the fund in medio.

Counsel:

Counsel for Reclaimers— J. Reid— A. O. Deas. Agents— Macpherson & Mackay, S.S.C.

Counsel for Respondents Gibson's Trustees— G. Watt— Macmillan. Agent— John Macmillan, S.S.C.

Counsel for Respondent Macdougall— M'Lennan— A. J. Robertson. Agents— Dalgleish & Dobbie, S.S.C.

1899


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