Is a Trustee entitled to be indemnified if the Trustee's legal costs are improperly incurred?
British Columbia, Canada
The following excerpt is from Levi-Bandel v. McKeen, 2011 BCSC 247 (CanLII):
However, there is an exception to that principle. Trustees are not entitled to be indemnified where the costs are improperly incurred. In addition, where a trustee incurs legal costs defending herself rather than the trust, she is not automatically entitled to be indemnified: Fenwick v. Zimmerman, [2008] O.J. No. 3200 (S.C.J.). Further, when a matter proceeds to litigation the general rule is that costs follow the event, which means that the losing party is not entitled to recover her costs.
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