A recent High Court case, Smith v Campbell & Others (2025), provides important lessons for private client lawyers dealing with trust disputes.
The case involved the administration of a family trust set up by Graham Cheslyn-Curtis, founder of the Millpledge Group, a veterinary supply company. After his death in 2018, his estate was managed by four trustees – two family members and two trusted business associates. However, a breakdown in relationships between the trustees and beneficiaries led to a claim for trustee removal. Here’s what private client lawyers can learn from the case.
Case summary
Graham’s will created a discretionary trust to benefit his long-term partner Suzanne, her children Nathan and Leah, and his own son Guy. Graham wanted Nathan and Leah to play key roles in the family business, Millpledge, by becoming directors, a role the trustees were tasked with implementing. However, after Graham’s death, tensions grew when Nathan and Leah were removed as directors of Millpledge, a decision that led them to seek the removal of the trustees.
The claimants argued that the trustees had failed in their duties by not acting impartially, failing to communicate effectively, and mismanaging the trust’s assets. The court ultimately decided to remove two of the trustees, finding that their negative attitude towards the claimants created an irreparable breakdown in trust and hindered the proper administration of the trust.
Key takeaways for private client lawyers
1.Trustees must act impartially and keep beneficiaries informed
Trustees have a fundamental duty to act in the best interests of all beneficiaries and to keep them informed about their interests in the trust. In this case, the claimants alleged that the trustees had not informed them about their status as beneficiaries and had made decisions behind their backs, creating distrust. As private client lawyers, it’s important to remind clients that trustees must maintain clear and transparent communication with beneficiaries to avoid disputes.
2.A breakdown in relationships can justify trustee removal
While personal conflicts between trustees and beneficiaries do not automatically warrant removal, they can, as shown in this case, reach a point where the relationship is so damaged that the court will intervene. The court found that one trustee’s hostile comments towards the claimants posed a risk to the impartial administration of the trust. Lawyers should advise clients to seek professional help to resolve conflicts early to prevent escalation.
3.Professional trustees can provide necessary oversight
While family members can act as trustees, the case highlighted the value of having professional trustees involved to ensure the fair management of the trust. The court appointed an independent trustee alongside the family members to ensure proper oversight. Private client lawyers should consider recommending the appointment of a professional trustee, particularly when family dynamics threaten to impair decision-making.
4.A letter of wishes is important, but not legally binding
The case demonstrated that while a letter of wishes can help guide trustees, it is not legally binding. Graham’s letter outlined his expectations for the trust’s administration, particularly regarding the running of Millpledge. However, trustees failed to adhere to his wishes in some areas, leading to conflict. Private client lawyers should ensure that their clients’ letters of wishes are clear, realistic, and understood by all trustees, but remind clients that they are not legally enforceable.
5.Avoid litigation: Seek mediation where possible
This case underscores the importance of resolving disputes before resorting to litigation. The claimants initiated the legal proceedings without engaging in pre-action discussions, which only intensified the conflict. Private client lawyers should always consider alternative dispute resolution methods like mediation to resolve trust disputes without the need for expensive and lengthy court proceedings.
Conclusion
The Smith v Campbell case highlights critical lessons for private client lawyers in managing trusts, particularly in ensuring trustees act impartially, communicate effectively, and seek professional oversight where necessary. For clients involved in trust disputes, it is essential to resolve conflicts early and consider mediation before turning to litigation. By applying these lessons, private client lawyers can help safeguard the proper administration of trusts and protect their clients’ interests.
