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McPhail and Ors v Doulton and Ors

[1971] A.C. 424

(Judgment by: Viscount Dilhorne)

Between: McPhail and Ors - Appellants
And: Doulton and Ors - Respondents

Court:
House of Lords

Judges: Lord Reid
Lord Hodson
Lord Guest

Viscount DilhorneLord Wilberforce

Subject References:
TRUSTS
DISCRETIONARY
Power of selection
Fund for employees
Trustees 'shall' apply income
Trustees not bound to exhaust income of any year
Power to apply accumulations as though income
Whether trust or power
Whether same or different test applicable in determining validity

Hearing date: 13-15, 19-21 January 1970
Judgment date: 6 May 1970
[On appeal from In Re Baden's Deed Trusts; Baden and Ors v. Smith and Ors.]

Judgment by:
Viscount Dilhorne

My Lords, I have had the advantage of reading the opinion of my noble and learned friend Lord Wilberforce. I agree with it. For the reasons he gives, in my opinion the provisions of clause 9(a) of the deed constitute a trust, and I entirely agree with his observations as to the tests to be applied to determine the validity of a trust.

I, too, would allow the appeal and make the orders he proposes.


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