Privy Council, 27th March, 1939.
This appeal concerns the
administration of the estate of
one Tab Beigh, a trader of 17,
Picton Street, Bathurst, in the
Colony of Gambia, who died on
the 19th December, 1927, leaving
a will dated the 1st November,
1926, of which probate was
granted on the 30th January,
1928.
That will appointed one Colin
Shaw and one William Topp to be
executors and contained the
following provisions which are
material to the questions in
issue in the present case :-
" (I) I give and devise my lot
of land No. 10, Leman Street,
Bathurst, to my dear wife Ada
Heigh for the term of her
natural life and after her death
to the Father Superior of the
R.C. Mission at Bathurst .
" (2) I direct that my said dear
wife be permitted to reside in
my premises No. 17, Picton
Street, Bathurst, for 12 months
only after my death.
" (3) I give and bequeath to my
said wife the whole of the
amounts due on the mortgage of
12, Hagan Street, Bathurst, that
is to say both the principal and
interest on it for her absolute
use and benefit.
" (4) I give and bequeath unto
my said wife all the goods in my
shop at 17, Picton Street,
Bathurst, and all my stock in
trade and other personal effects
belonging to me in connection
with or used for the purposes of
trade and the benefit of all
contracts subsisting in relation
to my business.("
• Reported at 3 W.A.C.A. p. 16).
The two executors duly proved
the will but William Topp never
intermeddled with the assets and
the determination of the present
appeal is concerned solely with
the activities of Colin Shaw in
administering the estate. The
appellant, Ada Beigh, the
deceased man's wife, being, as.
she stated, dissatisfied with
the way in which the property -.
left to her was dealt with,
initiated the present action
Lord Porter by writ issued on
the 19th June, 1934, claiming as
legatee under the will against
both Colin Shaw and William Topp
as executors to have the real
and personal estate of her late
husband administered and an
account rendered of what was due
to her under and by virtue of
the said will. The defendant
Topp (who was then in Europe)
was not served
in
the first instance. On the 21st
June, 1934,. Colin Shaw
submitted to an order that he
should render a proper statement
of account as executor of the
estate of the deceased on or
before the 28th July, 1934.
During that month certain other
beneficiaries under the will
were added as plaintiffs in the
action, but on accounts being
filed expressed them- selves as
satisfied and the action
proceeded between the appellant
as plaintiff and the two
executors as defendants.
William Topp was duly served and
appeared at the trial of the
action, but in his case the
claim was not pressed. Since
none of the assets had come into
his hands no order was made
against him and the appellant
did not appeal against that part
of the decision of the learned
trial Judge.
(a)
Whether the defendant Shaw had
properly accounted for the stock
in trade at 17, Picton Street,
which had been specifically
bequeathed to the appellant?
(b)
Whether the defendant Shaw ought
to be credited with any and (if
any) what expenditure. made by
him on 10, Leman Street?
(c)
Upon what basis Shaw ought to
account for the mortgage debt on
12, Hagan
Street?
.
At the trial of the action the
appellant and the two defendants
alone gave evidence and as,
owing to illness, Topp had taken
no serious part in the
administration of the estate,
his evidence was not very
material. The learned trial
Judge found the defendant Shaw a
most unsatisfactory witness, and
though no dishonesty was or is
imputed to him, it is plain that
in any case of conflict his
evidence was rejected and that
of the appellant was believed.
After an account had been filed
by Shaw three questions alone
remained requiring the decision
of the Court.
In these circumstances their
Lordships think that the
findings of fact of the learned
trial Judge who saw the
witnesses must be accepted.
From the appellant's evidence it
appears that after her husband's
death Shaw told her that the
goods belonged to her, but he
himself opened the shop and sold
in it for two weeks whilst the
appellant was in seclusion
mourning for her husband. After
that time both Shaw and the
appellant sold goods in the
shop. Shaw, as she said, was
helping her but she could not
see the use of his helping her.
When the appellant sold she, on
the instructions of Shaw, made
an entry, of whatever she sold
on paper provided by him. When
she sold she had the key of the
shop, but' all the money
received was taken by Shaw and
locked up in the safe, of which
he alone had the key. Indeed
this key was in his possession
up to the date of the trial.
Some serge, forming part of the
goods, was distributed as
mourning by Shaw without the
assent of the appellant and
certain goods were taken by. him
to his shop to be disposed of
there and were disposed of by
him, only a portion being
returned. No money came to the
appellant's hands direct-all she
received was an allowance of £1
per week, together with a bag of
rice monthly, both of which Shaw
gave her after asking what daily
money her husband had allowed.
After April, 1929, when Shaw
went to Sierra Leone, he had
little more to do with the shop
and by that time very few of the
goods were left, but up to that
date and once afterwards,
certain articles were ordered by
Shaw and sold with the other
goods. The indents for the goods
purchased were signed by Shaw
for" Ada Beigh" but some were to
be marked" J.B." or sent to
Colin Shaw in his own name, and
in one instance where the
document was dated 12th
September, 1928,' the goods were
ordered to be forwarded
" ale
J.B." directed"
clo
Mr. Colin Shaw, Executor." The
latest of the indents was dated
12th March, 1930, and contained
a note" Mark of parcel J .B."
and was signed" Colin Shaw for
Mrs. A. Beigh."
Meanwhile in accordance with the
terms of the will the appellant
had to leave Picton Street in
December, 1928. She was,
however, tenant for life of No.
10, Leman Street, an<;l with the
appellant's consent Shaw appears
to have rebuilt the house and
constructed a shop on the ground
floor. He himself says that the
money required for this purpose
was taken from the sums received
by the sale of the goods.
There is no corroboration of his
statement, but the money
must have come from some source
and their Lordships see no
reason for supposing that it was
obtained in any other way ..
The amount which was spent in
this way, however, has Shaw not
been ascertained because the
learned trial Judge held himself
unable to deal with the amount
chargeable to the Lord Porter
appellant in the absence of a
representative of the Roman
Catholic Mission. That body he
held, being remainder men and
liable to bear some portion of
the cost of rebuilding as
capital expenditure were
interested in the question, and
without their presence Shaw's
claim to reimbursement for this
expenditure could not be
considered.
During all this time and indeed
at the date of the hearing of
the action the mortgage of Hagan
Street had never been assigned
to the ~ appellant. As this was
a specific gift the assignment
should have taken place within a
year at latest from the
testator's will. Shaw was, of
course, under no obligation nor
would he have been entitled to
call in the mortgage, but in
fact he took no serious steps
either to enforce 'the security
or collect the interest, steps
which the appellant could not
take, but which he as legal
holder of the mortgage could. It
is true that Shaw could not find
the mortgage deed in the safe,
and he appears to have made some
application to the mortgagor for
payment of interest and
repayment of capital with the
result that he obtained the sum
of £2 5s. 10d., but no further
steps were taken in spite of the
fact that the appellant had
asked Shaw about the mortgage
after his return from Sierra
Leone in 1929, that in 1933 the
appellant's solicitor was
pressing for the money and
offered to move in conjunction
with him in getting in the
mortgage, and that the appellant
several times complained of the
delay to Topp who often went to
Shaw to get the matter wound up.
In this state of facts the
learned trial Judge held (i)
that the goods in the shop had
never been transferred to the
appellant and that Shaw was
liable to account with compound
interest at 5 per cent. on the
basis that he had himself made
use of them or the money
representing them, but was
entitled to set off any
legitimate expenditure which he
could prove· as against the sum
so calculated, (ii) that he was
liable on the basis of wilful
default for the interest on the
mortgage which had not been
collected,' (iii) that the
expenditure at Leman Street
could not be taken into account,
but that if Shaw desired to get
credit for the sum paid he must
take proceedings impleading the
Roman Catholic Mission as well
as the appellant. He accordingly
directed :-
(i) An inquiry into the value of
the mortgaged property,
(ii) an account of the interest
due in respect of it,
(iii) an account of any money
whether capital or interest
received thereunder,
(iv) an inquiry as to the value
on the 19th December, 1927, of
the goods and other assets at
the shop bequeathed to the
appellant,
(v) an account of such part of
these goods and assets as had
been employed by Shaw in trade
together with all profits made
by such employment or interest
at 5 per cent. per annum with
annual rests upon what had been
so employed.
After further evidence had been
taken the answers to these
inquiries were either agreed by
the parties as figures or found
by the Court. They were :-
(i) Value of mortgage at 19th
December,
£
s
. d.
1928
130 10
01/2
(ii) Interest from testator's
death
115 19
5
(iii) . Principal repaid ...
£ 2 0
0
In terest
5 1
0
(iv) A sum which is said to be
made up o{ the value of the
goods and assets at the shop
less all just allowances and
proper expenditure
........................................
325 17
101/2
(v) Interest on £599 4s. 4d. the
sum said to have been employed
in trade at 5 per cent. per
annum with annual rests, the
date to which it is calculated
not being specified but
apparently
being the date of the writ
..............................
226 10
7
Having ascertained these.
figures the trial Judge gave
judgment for the appellant for
£800 13s. 7d., that is 10s. less
than the addition of these five
sums. From this judgment Shaw
appealed to the West African
Court of Appeal, which gave
judgment on the 26th May, 1936,
allowing the appeal, finding
Shaw liable in respect of goods
and assets in the shop for £55
4s. only and for £2 5s. in
respect of the mortgage, Le.,
£57 9s. in all, ordering an
inquiry as to the amounts
expended by Shaw in
improvements, alterations. and
repairs to 10, Leman street, and
that the amount so amount so to
be credited be less than £57 9s.
the appellant have
judgment for the balance, but if
the amount to be credited be
equal to or exceed £57 9s.,
judgment be entered for Shaw.
The Court of Appeal arrived at
its conclusion on the following
grounds. (1) That the whole of
Shaw's expenditure at 10, Leman
Street, must be credited to him
in account. In the view of the
Court the money used for. this
property was spent on the
instructions of the appellant
and Shaw was therefore entitled
as of right to a full indemnity
for this expenditure though the
appellant might as between
herself and the remainder men be
entitled to an adjustment of the
account and an apportionment of
the expense, (2) that as regards
the mortgage
(a)
the specific bequest in the will
entitled the legatee to the
mortgage debt and mortgage
property subject to the
executors' assent. "This
assent," said, delivering the
judgment of the Court of Appeal,
"has never been withheld, and
from the evidence can be
implied" ;
(b)
the executor, was not liable for
a failure to collect the
interest-his good faith had
never been impugned and he could
not be made liable for
negligence or .wilful default
when no such accusation had been
made against him; (3) it had
been agreed that the defendant
was liable for £55 4s. cash
balance up to the year 1927, but
after this year had handed
over the key of the shop to the
appellant and ceased to function
as executor with regard to this
bequest.
On the first point their
Lordships agree with the Court
of Appeal. The. appellant
herself stated in evidence that
she wanted to carryon her
husband's business. This she
could only do if she had a shop
in place of 17, Picton Street,
which she was obliged to leave
within a year of her husband's
death. It appears that a shop
was provided by Shaw at 10,
Leman Street, when he rebuilt
the premises, that the appellant
at least knew of and agreed to
the rebuilding, that she
removed to the new shop from ·Picton
Street in January, 1929, and
that she continued to carryon
business there.
In these circumstances their
Lordships think the true
inference to be drawn is that
the expenditure was -incurred
for the appellant and at her
request and that the executor is
entitled to an indemnity from
her for "the whole of this money
properly so expended. What (if
any) rights she may have against
the Roman Catholic Mission as
remainder men is not germane to
the present inquiry and their
Lordships make no pronouncement
upon it.
As to the second point.' The
learned trial Judge presumably
gave judgment for £130 on the
ground that (i) that was the
capital value of the property
when it should have been handed
over, (ii) that Shaw had in some
way made it his own. by failing
to assign it, (iii) that the
personal covenant for repayment
of the capital was of no value.
He also held (iv) that with
diligence the whole of the
interest might have been
recovered or at any rate Shaw
had not discharged the onus cast
upon him of showing that it was
irrecoverable and (v) that he
had been guilty of wilful
default.
The Court of Appeal held that
this decision could not. be
supported because no claim had
ever been made against the
executor on the basis of wilful
default. Undoubtedly the
original writ was framed only
for relief on the basis of a
common administration order, and
if the action had been . brought
in England the beneficiary would
not have been permitted to
allege a breach of trust or
wilful default without amending
his claim and probably also his
writ.
But the procedure in West Africa
is more informal. By the rules
of the Supreme Court of the
Colony of Gambia
(1928) O. 23. r. 1. suits are
ordinarily to be heard and
determined in a' summary manner
without pleadings, and by O. 16,
r. 2, the plaintiff may obtain
any such equitable relief as the
facts stated and proved entitle
him to, though not specifically
asked.
The fact therefore that in a
case like the present where no
pleadings were ordered the writ
makes no mention of wilful
default, is not fatal to a
decree based on such a claim.
Had there been pleadings they
could have been amended in a
proper case if amendment had
been applied for. Where,
however, there are no pleadings
no amendment is possible, but
there is no reason why the
plaintiff's case should not be
treated as if it had been
formally stated on a pleading
and formally amended by a plea
of wilful default. Their
Lordship agree nevertheless that
unless such a claim was plainly
made; submitted to and dealt
with at the hearing, it would
not be proper to grant any
relief based upon .~ finding of
wilful default.
But in their view in the present
instance wilful default it was
clearly charged in the course of
the proceedings. 27::~rch.
Indeed, much of the
cross-examination would be in-
1939. admissible on any other
ground, and the legal
representatives of both parties
discussed Shaw's liability on
this basis.
It was urged before the Board
that the learned trial Lord
Porter Judge had made a common
form order at the first hearing
on the 26th June, 1934, and that
all future proceedings were
ancillary to this order. Their
Lordships do not so understand
the sequence of events. In their
view Shaw in the first instance
merely submitted by consent in
the absence of Topp to an order
for an account which might or
might not satisfy the appellant
and the other plaintiffs,
leaving such steps to be taken
and such remedies given as the
disputes which should emerge in
the course of taking the account
and the evidence might require.
They think that Shaw had ample
opportunity of meeting a case of
wilful default and that no
injustice is done in dealing
with the case on that basis.
Taking this view, as they do,
they think that there was ample
evidence on which the trial
Judge could find Shaw guilty of
a breach of trust in not
assigning the mortgage to the
appellant within a year of the
deceased man's death and. in not
collecting the interest. Nor
does his failure to find the
mortgage deed affect the matter.
The mortgage was still a legal
mortgage. In a country where
titles are registered there
should have been no difficulty
in ascertaining the terms (and
indeed from the evidence given
there seems. to have been no
such difficulty), or in
assigning it to the legatee. But
the quantum of loss of capital
is more difficult to ascertain.
Their Lordships think, however,
that the true inference to be
drawn from the evidence given
was that the mortgage security
had deteriorated and that Shaw's
failure to assign had deprived
the appellant of an opportunity
of avoiding such loss, but that
the mortgagor either had always
been unable to pay anything upon
the personal covenant, or at any
rate was as much or as little
able to pay at the time of the
hearing of the action as he had
been when the mortgage should
have been assigned. If this view
be taken the sum which the
appellant was entitled to
recover was no more. That sum,
however, was not the value of
the mortgage in 1927, viz.,
£130, but £130 less its value at
the time of the trial. They find
evidence in the record ~hat the
latter value was £80 and
therefore consider the loss
should have been assessed at
£50. The appellant is, of
course, also entitled to have
assigned to her the mortgage
security and the debt secured
thereby. In the absence of
knowledge as to whether Topp has
or has not survived Shaw, their
Lordships find themselves unable
to make any order with respect
to it. They can only direct an
inquiry as to whether Shaw
survived Topp and, if he did,
direct that the respondents
should assign the mortgage
security and debt .thereby
secured to the appellant ..
As to the recovery of the
interest upon the mortgage, in
their Lordships' view the trial
Judge was right also. An
executor to whom interest is due
is, they think; chargeable in
account with the sum he should
have received unless he shows
that he was unable to recover
it. The onus is upon him to do
so. See
Tebbs
v.
Carpenter,
(1816) 1 Madd. 290 aLp. 297, and
Billing
v.
Brogden,
(1888) 38 Ch. D. 546. In the
present case the mortgagor might
well have succeeded in paying
the interest though unable to
find the capital sum. Shaw has
not discharged the onus and is
liable accordingly.
As to the third point it was
contended on behalf of the
respondents that Shaw had handed
over the goods and assets 'of
the shop to the appellant. He
had, it is said, told her that
the goods were hers and had
handed her the· key of the shop.
It was however admitted, as has
been pointed out, that he had
both ordered further goods and
kept the proceeds of all sales
under lock and key, that on his
instantiations the appellant
furnished sales accounts to him
and that· he gave her no money
except
£1 weekly to which he added a
bag of rice monthly, though he
said these acts were done
because she had been his wife's
ward before her marriage and he
felt responsible for her
welfare. ,
Having regard to the evidence
given and the findings of the
learned trial Judge, their
Lordships are not prepared to
accept this explanation. In
spite of the inference drawn by
the Court of Appeal that Shaw
having handed over the key had
after the year 1927 assented to
the bequest and ceased to
function as executor, their
Lordships think that Shaw
continued to act as executor in
respect of the bequest of the
assets of the shop just as he
did in rebuilding the house at
10, Leman Street, and in keeping
the mortgage in his own name and
accepting no assistance from the
appellant's solicitor to recover
the sum due. In a sense it is
true that most of his duties as
executor in regard to the goods
in the shop had been completed
early in 1929 since very 'few of
the goods were then indisposed
of, but he still required an
account from the appellant of
the sales she had made,
27::~~rch. he made at least one
purchase in 1930, and even up to
the
1939. date of the trial he
retained the key of the safe and
control of any money which was
left.
In these circumstances their
Lordships think that the Lord
Porter trial Judge was right
in holding that the
executorships continued up to
that date and that Shaw was
accountable for the value of the
goods.
Indeed even if the respondents
had not to account for Shaw's
actions as executor in this
respect they would, in an action
brought against them as
executors of Shaw have had to
account for his acts as agent
for the appellant in receiving
and expending the appellant's
money, although in that case the
liability would not have been
against Shaw as executor but
against him in his personal
capacity.
But although their Lordships
agree with the trial Judge that
the executorships continued,
there are two matters on which
they are unable to accept his
views.
They see no reason for imposing
a liability upon Shaw upon the
ground that he had used the
money which he received for the
purposes of his own trade or
business. He had indeed
continued to act as executor but
he used the goods not for his
own purposes or for his own
trade, but . for the appellant's
purposes and the appellant's
trade. In· these circumstances
their Lordships do not think he
should be mulcted in compound
interest upon the sum of £599
4s. 4d. This amount appears to
be made up of the total value of
the goods and assets at the shop
existing at the testator's death
together with those purchased
afterwards. The true inference
appears to be that the goods
after wards purchased were paid
for out of the proceeds of goods
previously sold, and no valid
reason for adding both sums
together has been shown.
But apart from this objection
Shaw, as their Lordships have
indicated is entitled to
be credited with all sums
properly expended in rebuilding
the house at 10, Leman Street.
The Court should therefore
ascertain the value of the
assets at the shop received by
Shaw from time to time and
placed in the safe or elsewhere.
Against this sum Shaw is
entitled to be credited with any
money properly expended in
rebuilding the house at 10,
Leman Street, with any money
used for the purchase of goods
for the appellant, and with the
weekly sum of £1 and the value
of the monthly bag of rice
allowed to the appellant.
The account should begin on the
1st February, 19~'g, two days
after probate was obtained and
at that date Shaw should be
debited with £339 18s. 6d., the
value of the stock in trade and
other personal effects belonging
to the testator in connection
with or used for the purposes of
trade, and the . benefit of all
contracts subsisting in relation
to his business at his death.
Against this Shaw should be
credited with the money spent on
10, Leman Street, as it was
paid, with any payment for goods
purchased for the business and
with the weekly £1 and monthly
bags of rice, but he should be
debited again with the value of
the further purchases as and
when they were made.
In some cases their Lordships
might be inclined to charge the
executor with simple interest on
the sums held by him from time
to time on the ground that he
retained the property of the
legatee long after he should
have handed it over, but in the
present case they think that
there was good reason for the
retention of the money. Shaw
was, as their Lordships have
stated, engaged in rebuilding
10, Leman Street, at the
appellant's request. For that
purpose it was essential that he
should have ready to hand
sufficient money to pay for the
work as and when it was done.
The amount required must be to
some extent speculative and the
moment of its requirement
unascertained. In such
circumstances their Lordships
cannot say that it was
unreasonable for Shaw to keep
the money in his own hands
uninvested instead of handing it
to the appellant. No interest,
therefore, on the goods and
other assets at the shop
received by Shaw should be
charged against him. The figures
supplied to the trial Judge are
difficult to follow without
seeing an account, but the total
sum (if any be due) is not
likely to be a large one, and it
may be that the parties will be
able to agree it without further
litigation.
Having regard to the view they
have expressed, their Lordships
hold that the appellant is
entitled to recover-
(I) in respect of the capital
sum due
on mortgage
.........................................
£ 50 0 0
(2) interest on the
mortgage debt .............
.....£ 115 19 5
£ 165 19 5
The sum of £2 5s. 10d. collected
by Shaw these sums and is not
separately recoverable.
The appellant is also entitled to
an inquiry as to the value of the
goods and assets at 17, Picton
Street, bequeathed to her, and of
the goods afterwards purchased,
but against this sum there must be
allowed in account all money
properly expended by Shaw in
respect of the work done at 10,
Leman Street, in purchasing goods,
and in the allowances made to the
appellant.
She is also entitled to an inquiry
as to whether Shaw survived Topp,
and, if he did, to a direction
that the respondents do assign to
her the mortgage of 12, Hagan
Street, Bathurst, together with
t4e sum now secured thereby.
Both parties have partially
succeeded and their Lordships
think that no costs should be
given to either appellant or
respondents before their
Lordships' Board or in the Court
of Appeal.
The costs of the Court of first
Instance should be left in the
discretion of that Court.
As Colin Shaw died during the 'pendency
of the appeal to His Majesty in
Council the judgment for the sum
of £165 19s. 5d. will be and the
judgment for any other sums found
due should be against the present
respondents (who are his
executors)
de bonis testatoris
and not personally.
Their Lordships will humbly advise
His Majesty accordingly •.
|