ABSTRACT
It would be a mistake to believe that the action for breach of trust is not important. It is the first weapon of the wronged beneficiary and one whose net can be cast particularly widely. In general terms, there are four areas of concern to the student although, as ever, this is a somewhat arbitrary classification. First, questions arise as to what actually constitutes a breach of trust and who is responsible for it. This is tied to the standard of care required of trustees and the measure of compensation for a proven breach. Secondly, there is much case law concerning the circumstances in which a trustee may be liable for breach of trust even though the ‘act in breach’ was committed by another person, such as an agent or co-trustee. This can be easily
confused or interwoven with issues in the first category. Thirdly, the relationship of trustees with each other consequent upon a breach of trust can seem confusing, and hence questions concerning the liability of trustees inter se and any remedies they may have against each other are often asked in examinations. Fourthly, and perhaps less difficult, the student must have an awareness of the trustee’s possible defences to an action for breach of trust. Once again, in all of these issues, case law is important although various provisions of the Trustee Act 1925 and the Trustee Act 2000 are relevant and must be examined with some care.
