Can a fiduciary trustee be held accountable for expenditures of funds received from a trust in order to increase the value of his own real property?
Newfoundland and Labrador, Canada
The following excerpt is from Conway (Re), 2020 NLSC 132 (CanLII):
In Garland v. Clarke (1982), 41 Nfld. & P.E.I.R. 75, 119 A.P.R. 75 (Nfld. D.C.), the defendant had assumed a fiduciary duty in relation to the management of the plaintiffs’ money. He used this money to create an apartment, thereby enhancing the value of his own real property. As fiduciary, he was held accountable for expenditures of the money received (at paragraph 25). The court further found the defendant to be in breach of the trust for failing to obtain direction from the court in advance of making the expenditures (paragraphs 39-40).
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