ABSTRACT
Trustees are liable for breach of trust if they fail to observe their duties. The claimant may bring proceedings in personam against the trustees for breach of trust. Such a claim is required to be brought within the time periods as declared in the Limitation Act 1980. The policy of measuring the damages payable to the trust is to place the trust estate in the position it would have been but for the breach. The strict common law rules of remoteness of damage are not applicable, but a link must be established between the trustees’ breach of trust and the loss to the trust. In addition, a claim in rem may be instituted against the trustees to recover (or trace) the trust property. This claim is not subject to the Limitation Act 1980 but is subject to the doctrine of laches.
