Latest News [index] When trustee liability becomes personal
Trustees generally act personally unless the trustee's liability is limited by contract. This means that simply entering into an agreement on behalf of a trust (without anything more) does not imply that any liability incurred is limited to the assets of the trust.
This point was confirmed again this week in Scantlebury v Pinney a case involving a default from one of two parties to a property transaction. This case, which required that the court determine the terms of unsigned agreements, also serves to highlight the importance of finalising documentation prior to embarking on a commercial venture.
The result in this matter was summary judgment in the amount of $238,000 plus interest against the defendant in his personal capacity.