July 2014

Jane Collis
...it would seem that, unnoticed by the equity judges and academics over the centuries, actions subsequently regretted by trustees have a quality of reversibility. It appears that Doctor Equity can administer a magical morning after pill to trustees suffering from post-transaction remorse, but not to anyone else.[1]
The Trustee Amendment Act 2014 (the “Act”) (35 KB PDF) will have the effect of amending the Trustee Act 1975 to introduce a new section 47(A), giving the court jurisdiction to set aside the exercise of a fiduciary power, which has gone wrong, thereby enshrining in law the “Rule in Hastings-Bass”, referred to by Lord Neuberger in commentary as a “magical morning-after pill”. In the case of Hastings-Bass,[2] Lord Justice Brown laid down the following, which became known as the “Rule in Hastings-Bass”: