Holder v Holder
Encyclopedia
Holder v Holder [1968] Ch 353 is an English trusts law
case concerning conflict of interest
.
of his father’s will. He wanted to renounce executorship, after he had performed some tasks in that capacity. Unfortunately that technically meant the executorship could not be properly renounced. The remaining executors put two farms up for auction
, on which Victor was a tenant. Victor bought them at the auction. The other beneficiaries of the trust claimed he could not make the purchase, because it would constitute a conflict of interest
.
LJ delivered judgments distinguishing this from Lord Eldon’s strong words in Ex parte James
and Ex parte Lacey because everybody concerned knew that the purchase was planned, and maybe Lord Eldon exaggerated in saying that you can never determine what somebody knows.
Sachs LJ concurred that there was no conflict of interest. He took the view that a hard and fast rule prohibiting all transactions was unnecessary and could be unjust. The courts should examine the facts and then determine whether setting the sale aside is appropriate.
English trusts law
English trusts law is the original and foundational law of trusts in the world, and a unique contribution of English law to the legal system. Trusts are part of the law of property, and arise where one person gives assets English trusts law is the original and foundational law of trusts in the...
case concerning conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
.
Facts
Victor Holder was an executorExecutor
An executor, in the broadest sense, is one who carries something out .-Overview:...
of his father’s will. He wanted to renounce executorship, after he had performed some tasks in that capacity. Unfortunately that technically meant the executorship could not be properly renounced. The remaining executors put two farms up for auction
Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...
, on which Victor was a tenant. Victor bought them at the auction. The other beneficiaries of the trust claimed he could not make the purchase, because it would constitute a conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
.
Judgment
Harman LJ and DanckwertsHarold Danckwerts
Sir Harold Otto Danckwerts was a lawyer and judge in England and Wales.Harold Danckwerts was appointed a Justice of the Chancery Division of the High Court of England and Wales on 1 June 1949. A few days later he was knighted. He was promoted to be a Lord Justice of Appeal in the Court of Appeal...
LJ delivered judgments distinguishing this from Lord Eldon’s strong words in Ex parte James
Ex parte James
Ex parte James 32 ER 385 is an insolvency and company law case, concerning conflicts of interest, and the absolute duty to avoid them.-Facts:A bankrupt's estate was purchased by a solicitor to the commission of the bankrupt.-Judgment:...
and Ex parte Lacey because everybody concerned knew that the purchase was planned, and maybe Lord Eldon exaggerated in saying that you can never determine what somebody knows.
Sachs LJ concurred that there was no conflict of interest. He took the view that a hard and fast rule prohibiting all transactions was unnecessary and could be unjust. The courts should examine the facts and then determine whether setting the sale aside is appropriate.
See also
- Keech v Sandford
- Ex parte JamesEx parte JamesEx parte James 32 ER 385 is an insolvency and company law case, concerning conflicts of interest, and the absolute duty to avoid them.-Facts:A bankrupt's estate was purchased by a solicitor to the commission of the bankrupt.-Judgment:...
(1803) 32 ER 385 - Boardman v Phipps