Jemma Trust Company Ltd v Lewis & Ors, Court of Appeal - Chancery Division, April 01, 2004, [2004] EWHC 703 (Ch)
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Jemma Trust Company Ltd v Lewis & Ors, Court of Appeal - Chancery Division, April 01, 2004, [2004] EWHC 703 (Ch)
Neutral Citation Number: [2004] EWHC 703 (Ch)
Case No: HC01C04684 & HC03C00847IN THE HIGH COURT OF JUSTICECHANCERY DIVISIONRoyal Courts of JusticeStrand, London, WC2A 2LLDate: 01/04/2004Before :THE HONOURABLE MR JUSTICE ETHERTON- - - - - - - - - - - - - - - - - - - - -Between :- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - -Mr Robert Ham QC and Mr Paul Emerson (instructed by The Owen Kenny Partnership) for the ClaimantMr Justin Fenwick QC and Mr Alex Hall Taylor (instructed by Pinsents) for the First DefendantsMs Amanda Hardy (instructed by Brabners) for the Second and Third Defendants Hearing dates: 26 February 2004 - 12 March 2004- - - - - - - - - - - - - - - - - - - - -JudgmentThe Honourable Mr Justice ETHERTON INDEX Mr Justice Etherton:Introduction1. This is my judgment in relation to two actions for professional negligence against the First Defendants, Kippax Beaumont Lewis ("KBL"). 2. KBL acted as solicitors for the Second Defendant, Peter d'Arcy Liptrott ("Mr Liptrott"), and the Third Defendant, John Forrester ("Mr Forrester"), as executors and trustees of the will of Sir Geoffrey Alan Hulton Bt. ("Sir Geoffrey") dated 5 July 1991 ("the Will"). 3. One of the actions concerns the conduct of KBL in relation to a deed of variation of the Will dated 16 November 1995 ("the DOV Action"). 4. The other action ("the CGT Action") concerns the advice given, or not given, by KBL in relation to capital gains tax ("CGT"). 5. The Claimant, Jemma Trust Company Limited, claims to be beneficially interested in property which vested in Mr Liptrott and Mr Forrester, as executors and trustees of the Will. The Claimant asserts in the DOV Action and the CGT Action causes of action which the Claimant alleges Mr Liptrott and Mr Forrester have, as executors and trustees, against KBL. Background Facts6. The facts surrounding the allegations in the DOV Action and the CGT Action are complex. The following is a brief summary sufficient to understand the broad factual setting for the allegations. 7. The Hulton family is a long established family, which has owned land in Lancashire for several centuries. 8. Sir Geoffrey and his wife, Lady Mary Patricia Hulton ("Lady Hulton") had no children. 9. As I have said, Sir Geoffrey appointed Mr Liptrott and Mr Forrester to be the executors and trustees of the Will. In the remainder of this judgment, I shall refer to Mr Liptrott and Mr Forrester together as "the Executors" and, where appropriate, "the Trustees". 10. By the Will, Sir Geoffrey gave certain property, which has been referred to in the proceedings as the Hulton Land Fund ("the HLF"), to the Trustees on trust for Lady Hulton during her life, with power to advance capital to Lady Hulton, and, after her death, to his nephew, Hugh Alan Butterfield ("Mr Butterfield"), provided he survived her. 11. Sir Geoffrey devised and bequeathed the residue of his estate upon trust to pay expenses, debts and tax payable at his death, and, subject thereto, on trust to pay a number of specific legacies, and, subject thereto, for Lady Hulton during her life, and, after her death, to Mr Butterfield, provided he survived her. 12. By clause 11 of the Will Sir Geoffrey directed that there should be paid out of his residuary estate all inheritance tax ("IHT"), CGT and any other taxes payable on his death and on the death of his wife in respect of, among other things, the assets comprised in the HLF. 13. Sir Geoffrey also provided, by clause 11 of the Will, that the Trustees should, if requested by Lady Hulton, advance her capital of up to £250,000. 14. Mr Liptrott was at all relevant times a solicitor and a partner in KBL. Mr Forrester was Sir Geoffrey's land agent. Both of them had worked for Sir Geoffrey for many years. 15. In November 1993 Sir Geoffrey entered into a conditional contract for the sale of part of the land comprised in the HLF ("the Hulton Land") to P E Jones (Contractors) Limited ("the Jones Land"). 16. Sir Geoffrey died on 20 November 1993. At the time of Sir Geoffrey's death, Lady Hulton was suffering from severe senile dementia, and required full-time care at home. 17. At all relevant times, at and following Sir Geoffrey's death, Mr Butterfield was resident and ordinarily resident, for CGT purposes, outside the UK. 18. At all times between the death of Sir Geoffrey and August 2000, KBL acted for the Executors and the Trustees. Within KBL, advice to the Executors and the Trustees was principally given by Mr Stephen Marriott, who is qualified as a barrister and was, during that period, employed as an associate by KBL. Mr Liptrott also acted and gave advice, principally in relation to conveyancing matters. 19. In February 1994 the Executors met to consider tax planning possibilities in respect of Sir Geoffrey's estate ("the Estate"). 20. They instructed Robert Venables QC and Mr Robert Grierson to advise on various tax planning matters, including whether...See the full content of this document
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