The Sun.
London, England, 1850-01-26 00:00:00

LAW INTELLIGENCE.
COURT OF CBANCEI7Y, Jan. 25.

PIJILLIP:.:.ON V. CATTY—GATTY V. PHILLIPSON.
This was an appeal from a decree of Vice-Chan-
rellor Wigram. The facts were that under certain
deeds of sttlement and appointment mentioned in the
hleadings the sum of 4,5391. 53. 101 Consols became
Vested in the defendants Edward Getty and Edward
Owen as trustees. The trusts upon which they held
the fund were for E. P. B. Phillipson for her life,
and, after her decease, upon trust fur Richard B.
Phillipson and Mary Ann B. Phillipson, who were
the son and daughter of E. P. B. Phillipson, equally
between them. In the settlement creating the trust
the trustees ha*Vhe power from time to time,
with the consent-ein writing of Richard B. Phil-
lipscn and E. P. B. Phillipson, or the survivor
of them, to invert-_ Op trust funds in the public
fund.; of Great 841.1 a. or upon real securities.
In the year 1837 the.tinifees lent 2,0001. of the trust
fund to Richard B. Phillipson upon personal security,
to be repaid by him at the expiration of six months
from the death of E. P.-B. Phillipson, and which is
still outstanding. In March, 1838, the trustees ad-
vanced the residue of the trust fund (2,347/.55. 10d.)
to a person of the name of Langstaff upon the secu-
rity of a freehold dwelling•house and shops in the
town of Northampton, and since that time Langstaff
has been declared a bankrupt. The first bill, of
which Mary Ann B. Phillipson is the plaintiff, seeks
to charge the trustees with the full amount of the
trust-property, upon the ground that the loan of 2000/.
to Richard B. Phillipson was a breach of trust, and
that the Northampton property was of inadequate
value to such an extent as to make it a breach of trust
for the trustees to have lent the remainder of the trust
fund upon that security, and to make them liable fur
the loss. The case set up by the trustees was, that all
the dealings with the trust property had been done
with the sanction of the .cestuique trusts, and that
the Northampton security was of ample value at the
time that the mortgage was effected. This defence
cernposed the answer of the trustees to the original
bill, and also the case of the cross-hill filed by them.
The evidence respecting the estimated value of the
house in Northampton at the time of the mortgage
was of a conflicting character. The Vice-Chancellor,
however, decreed that the trustees.should pay into
Court the 2,0001. lent to Richard B. Phillipson, and
-tha' the Northampton mortgage should be realised,
and the proceeds invested in Console, and the trustees
de...Jared liable to make up in stock the difference be-
tv.-een the value of the funds so produced and the
et ?final amount of the stock. From this decree the
e.c.-oadants (the trustees) appealed.
The Solicitor-G:eieral, Mr. B thell, Mr. Walker,
l'elh% Wood, Mr. Reach, Mr. Gifferd, and Mr. E. F.
!:...Ith appeared for the different parties.
'The LORD CIIANCELLOIt this morning said that the
I;Hatiff's interest in the 2 0001. extended only to one
eeeLty, and therefore the decree of the Vice-
'he..Lcellor must be varied by ordering the trustees to
into court only 1,0001. With respect to the
„eheeha.mpton security, the proper order seemed to be
hie!: it should be sold and the proceeds brought into
hairt, and after that any of the parties should have
Liberty to apply.
Decree accordingly.