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Scottish Court of Session Decisions


You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Russell (Galloway's Trustee) v. Nicolson & Taylor [1869] ScotLR 7_129 (26 November 1869)
URL: http://www.bailii.org/scot/cases/ScotCS/1869/07SLR0129.html
Cite as: [1869] SLR 7_129, [1869] ScotLR 7_129

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SCOTTISH_SLR_Court_of_Session

Page: 129

Court of Session Inner House Second Division.

Friday, November 26 1869.

7 SLR 129

Russell (Galloway's Trustee)

v.

Nicolson & Taylor.

Subject_1Expenses — Bankrupt — Commissioners — Deliverance — Trustee.
Facts:

A trustee having appealed against a deliverance of commissioners in a sequestration fixing his commission, and the Lord Ordinary having ordered service of the appeal upon them, and they having appeared to defend their judgment, held ( diss. Lord Benholme) that they were entitled to their expenses out of the estate, up to the date of a report by the accountant in bankruptcy, (to whom the Lord

Page: 130

Ordinary had remitted) finding their deliverance wrong, but no longer.

Headnote:

Reservation of opinion by Lord Cowan and Lord Neaves on the general question of the right of commissioners in a sequestration to litigate in defence of their judgment.

In this case the appellant complained of a deliverance of the respondents as commissioners in a sequestration in which he (the appellant) was trustee, fixing his commission at a certain sum. That deliverance was as follows “The commissioners fixed the trustee's commission at three per centum on the sum of £2633, 18s. 3d., being the proceeds of the bankrupt's stock in trade, and five per cent upon £321, 6s. 5d., being the balance of the sum recovered by him, and authorised him to take credit for such commission in his accounts with the estate.”

The Lord Ordinary ( Ormidale), on the report of the accountant in bankruptcy, sustained the appeal, and fixed the commission at a sum considerably beyond that allowed by the respondents. He also found the respondents personally liable in modified expenses to the appellant. His Lordship added the fallowing note:—“The Lord Ordinary does not see that he is entitled under this appeal to deal with the charges in the law-agent's account of expenses referred to in the accountant's report; but as the law-agent expresses his willingness to deduct the items referred to, there can be no difficulty in arranging this extra judicially.

“In regard to the amount of the trustee's commission, the Lord Ordinary has had some difficulty. On the one hand, he has felt that this, being a matter peculiarly for the consideration of the commissioners, their determination ought not to be interfered with on light grounds. But, on the other hand, a remit having been made by a former Lord Ordinary to the accountant in bankruptcy, and the whole matter having been very carefully and minutely investigated by him, the Lord Ordinary has found it impossible to resist the conclusions at which he has arrived.

“Looking at all the circumstances, and as the appellant has not been wholly successful, the Lord Ordinary has only found him entitled to expenses subject to modification, which, however, he does not think ought to be much.”

The respondents reclaimed against this finding of expenses.

D.-F. Gordon and Duncan for reclaimers.

Gifford and Campbell Smith in answer.

The Court ordered the accounts of both parties to be put in, and to-day they found that up to the date of the accountant's report the expenses of both parties should come out of the estate; but, quoad ultra, they adhered to the Lord Ordinary's interlocutor, and, with regard to the Inner House expenses, they found that each party must bear his own.

Judgment:

The Lord Justice-Clerk held that it was the duty of the commissioners to appear and defend their judgment; that they were the proper contradictors of the trustee in that matter; and that, therefore, they were entitled to be relieved of all necessary expenses. They ought, however, to have acquiesced in the accountant's report, and not to have litigated further.

Lord Cowan and Lord Neaves concurred in the result, in respect that the commissioners were called into the field by the Lord Ordinary, who had ordered the appeal to be served upon them. Their Lordships, however, reserved their opinions on the general question as to the right of the commissioners to litigate in defence of their judgments.

Lord Benholne dissented, holding that the commissioners had no right to appear at all, they not representing the creditors, and having no duties other than those specified in the statute.

Counsel:

Agent for Trustee— Adam Morrison, S.S.C.

Agents for Commissioners— Jardine, Stodart & Frasers, W.S.

1869


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URL: http://www.bailii.org/scot/cases/ScotCS/1869/07SLR0129.html