Is a defaulting trustee liable for damages for breach of trust that are not limited to common law damages?

British Columbia, Canada


The following excerpt is from Royal Trust v. Barter et al., 2000 BCSC 1842 (CanLII):

The principle that compensation for breach of trust is broader than common law damages was enunciated in Re: Dawson, [1966] 2 N.S.W.R. 211 (S.C.) at 214-215: The obligation of a defaulting trustee is essentially one of effecting a restitution to the estate. The obligation is of a personal character and its extent is not to be limited by common law principles governing remoteness of damage. ... Caffrey v. Darby, supra, is consistent with the proposition that if a breach has been committed then the trustee is liable to place the trust estate in the same position as it would have been in if no breach had been committed. Considerations of causation, foreseeability and remoteness do not readily enter into the matter. ... The principles embodied in this approach do not appear to involve any inquiry as to whether the loss was caused by or flowed from the breach. Rather the inquiry in each instance would appear to be whether the loss would have happened if there had been no breach.

Other Questions


Can a stranger to a trust be held liable as a constructive trustee for breach of trust? (British Columbia, Canada)
Can a stranger to a trust be found liable for knowingly participating in a fraudulent breach of trust? (British Columbia, Canada)
What is the difference between an action in tort for breach of the common law duty of care and a contract in which a party is liable for damages? (British Columbia, Canada)
Can a stranger to a trust be personally liable for breach of trust? (British Columbia, Canada)
Can a stranger to the trust be held personally liable for breach of trust? (British Columbia, Canada)
Is a trustee liable for any loss to the trust estate if the trust funds were left uninvested for an unreasonable amount of time? (British Columbia, Canada)
Is limited common property a common common expense of a strata corporation? (British Columbia, Canada)
Can a strata recover damages from a property owner who causes damage to common property or strata lot? (British Columbia, Canada)
How have courts treated common law damages for breach of contract? (British Columbia, Canada)
What is the test for assessing damages for breach of trust? (British Columbia, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.