A release clause in a settlement deed that has not been set aside or attacked as a breach of trust can bar claims by successor trustees, even where a related settlement deed is found to involve a breach of trust. Trustee exoneration clauses relieve the trustee from liability but do not negate the breach itself, so third-party knowing recipients cannot rely on them. The fully informed consent of the sole beneficiary of a trust to a transaction alleged to be a breach of trust is determinative in favour of the recipient, and in the absence of a pleading of fraud, the knowledge of a sole director and shareholder is attributed to the company.
The full text is available to signed-in members, including the 24 later cases that cite this judgment.
2 of the 24 citing cases carry a classified treatment. How each court treated it is available to signed-in members.