TMC LEGAL | SHUFFLEBOTHAM & MILNER V SHUFF-WENTZEL [2025] EWHC 3321 (Ch)

Описание: High Court Preserves Indemnity For Unsuccessful But Honest Executor Removal Applicants | The High Court has confirmed that classification of executor removal proceedings as 'hostile litigation' does not automatically deprive unsuccessful applicants of their trustee indemnity, provided their conduct in bringing the application was honest and reasonable.

In this important Chancery Division costs decision, HHJ Charman examines when trustees ordered to pay costs personally can still recoup those costs from the estate under their right of indemnity.

The case provides essential guidance on the characterisation of trust litigation for costs purposes.

🔑 Key Points
Hostile litigation attracts the rule that costs follow the event under CPR 44.2
Trustees paying costs personally may still claim indemnity from the estate
Indemnity preserved where trustees acted honestly and reasonably
Joint and several liability applies to co-applicants pursuing common relief
Rejection of settlement offer was not unreasonable conduct

📋 Case Summary
Case: Shufflebotham & Milner v Shuff-Wentzel [2025] EWHC 3321 (Ch)
Judge: His Honour Judge Charman (sitting as High Court Judge)
Court: High Court, Chancery Division
Decision: Claimants pay defendant's costs but retain trustee indemnity from estate

⚖️ Why This Matters
This judgment clarifies the interaction between CPR 44.2 costs principles and trustees' indemnity rights. Practitioners advising executors and trustees in contentious probate matters must understand when hostile litigation characterisation applies and how indemnity can be preserved despite an adverse costs order.

🎯 What The Court Decided
Proceedings constituted hostile litigation rather than a trust dispute for the estate's benefit
Claimants jointly and severally liable for the defendant's costs personally
Claimants acted honestly and reasonably in bringing the application
Right to trustee indemnity from the estate preserved under general trustee principles
Rejection of defendant's 5 August 2025 offer was not unreasonable

📚 Topics Covered
Trustee indemnity from estate
CPR 44.2 costs discretion
Re Buckton categories of trust disputes
Hostile litigation characterisation
Joint and several costs liability
Lewin on Trusts indemnity principles
Settlement offers and costs consequences

💼 Useful For
Costs Lawyers | Costs Draftsmen | Chancery Practitioners | Private Client Solicitors | Probate Litigators | Trust Lawyers | Estate Administrators

🔗 Links
📖 Blog: https://www.tmclegal.co.uk/trustee-in...
⚖️ Judgment: https://www.bailii.org/ew/cases/EWHC/...

📞 Contact TMC Legal
Website: https://www.tmclegal.co.uk
Email: [email protected]
Phone: 01628 526 236🔔 SUBSCRIBE for regular updates on costs law, civil litigation, and CPR developments

Related Cases
Re Buckton [1907] 2 Ch 406
Price v Saundry [2019] EWCA Civ 2261
Hanson v Coleman [2025] EWHC 116 (Ch)
Jones v Longley [2015] EWHC 3362

#CostsLaw #TrusteeIndemnity #CPR442 #ChanceryLaw #TrustLitigation #ReBuckton #PricevSaundry #HostileLitigation #JointAndSeveralLiability #LewinOnTrusts #EstateCosts #ProbateLitigation #CostsFollowTheEvent #LegalCosts #TMCLegal #CivilLitigation #DetailedAssessment #CostsDraftsman #CostsLawyer #PrivateClient #TrustDisputes #ExecutorCosts #BeneficiaryDispute #CostsOrder #LegalPractice #UKLaw #HighCourt

⚠️ Disclaimer: This video is for educational purposes only and does not constitute legal advice.

© 2025 TMC Legal Limited