A dispute arose from the administration and eventual sale of a rental property held in trust where one party held legal title as trustee for himself and another beneficiary.
The trustees failed to maintain financial records over a 13‑year period, leading both sides to rely on competing accounting experts to reconstruct profits.
The trial judge accepted the respondent’s expert report and awarded damages for breach of trust, aggravated damages, and substantial indemnity costs.
On appeal, the Court of Appeal held that the trial judge erred in relying on the respondent’s expert because the assumptions about rental income were inconsistent with the evidence.
The court reassessed damages directly on the record, reducing the award and costs, while upholding aggravated damages and allowing the cross‑appeal of the solicitor on the basis that no duty of care or fiduciary duty was owed to the beneficiary.
