Dundee Hospitals Board v Walker [1952]

Dundee Hospitals Board v Walker [1952] 1 All ER 896, though a Scottish case and therefore not binding in other jurisdictions, provides persuasive authority and establishes principles regarding the circumstances under which the court will intervene in the exercise of a trustee's powers.

The testator bequeathed money to a hospital under the condition that the hospital would not be taken over by the state. The will granted the trustees the power to determine, in their 'sole and absolute' discretion, whether a hospital had been taken over by the state.

The House of Lords held that the trust was valid. Lord Normand, in delivering the judgment, outlined the principles governing the exercise of trustee's powers and the situations in which the court could intervene. Lord Normand emphasised that while the testator had granted the trustees the discretion to determine whether a hospital had been taken over by the state, this discretion was not absolute. The trustees were required to act reasonably when exercising their discretion.

Crucially, Lord Normand established conditions under which the court could intervene in the trustee's decision. The court would step in if it could be demonstrated that the trustees considered the wrong question, failed to apply their minds to the right question, wilfully ignored relevant facts, or did not act honestly or in good faith. In other words, the court would intervene when there were clear instances of misdirection, negligence, or bad faith in the trustees' exercise of their discretion.

This decision set a precedent for the principle that even when a trustee is given discretionary powers, there are limits to that discretion. The court retains the authority to intervene when the trustees' actions fall outside the boundaries of reasonableness or are tainted by dishonesty or bad faith. While this case originates in Scotland, its principles are persuasive and have been influential in shaping the approach to trustee discretion in other jurisdictions.
Back to blog
UOLLB SQE Turbocharge

UOLLB SQE Turbocharge

Get ready for the SQE1 with high-performance SQE Study Guides developed by UOLLB and published by UOL Press to revolutionise your study method and exam strategy.

Turbocharge SQE Performance Here

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding.
Speed up your revision with us now👇

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.