The Uncertainties in the Rule in Re Hasting-Bass

Abstract

Writing extra-judicially, Sir Robert Walker once commented that ‘the decision in Re Hastings-Bass must be seen in its judicial context. It cannot be regarded as giving a “carte blanche” excuse to every body of trustees who have made a mistake. The law on the issue now stands in a state of some uncertainty’ (Walker, The limits of the principle in Re Hastings-Bass, P.C.B 226, 2002). There is no doubt in the minds of most commentators and, indeed those persons seeking to invoke the rule in Re Hastings-Bass on behalf of their clients, that much clarification is needed as to the proper scope of the rule. Recent judicial trends suggest that, not only is the rule in Hastings-Bass being applied at such an unprecedented rate with very little scrutiny from a court beyond that of the High Court, it is also showing signs of plaguing the wider fiduciary community. As the opportunity for the Court of Appeal, and indeed the Supreme Court, to exercise some judicial scrutiny of the rule may not be that far away, this article highlights some of the present uncertainties with the rule in Re Hastings-Bass.