What was important about the decision in Re Butterworth (1881-81) LR 19 Ch D 588?

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The Answer is The decision in Re Butterworth (1881-81) LR 19 Ch D 588 is an important case in the context of English trust law, particularly concerning the duties and powers of trustees. In this case, the court dealt with the issue of whether trustees had the authority to delegate their duties.

The case centered around trustees who were given the power to carry on a testator's business for the benefit of the beneficiaries. The trustees, however, instead of managing the business themselves, appointed a manager to run it. The business eventually failed, and the question arose as to whether the trustees had acted improperly by delegating their responsibility to manage the business to someone else.

The court held that trustees have a duty to perform their functions personally and cannot delegate those functions unless they have been expressly authorized to do so by the trust instrument or by statute. This principle is based on the fiduciary nature of the trustees' role, which requires them to act in the best interests of the beneficiaries with the utmost good faith, care, and diligence.

The decision in Re Butterworth established the general rule that trustees cannot delegate their duties, which is a fundamental principle in trust law. It emphasizes the personal responsibility of trustees to administer the trust with due care and skill. However, the case also recognized that there may be circumstances where delegation is necessary and appropriate, provided that it is done in accordance with the terms of the trust or with statutory provisions.

The principle against delegation has been modified and relaxed in subsequent legal developments, recognizing that in modern times, it is often impractical for trustees to personally carry out all aspects of trust administration. Modern trust law includes provisions that allow trustees to delegate certain duties under specific conditions, such as employing agents, accountants, or investment advisors to assist in the management of trust affairs.

Re Butterworth remains an important case because it laid down the initial strict rule against delegation, which has influenced the development of trust law and the understanding of the fiduciary responsibilities of trustees. Subsequent legislation and case law have built upon this foundation to create a more flexible approach to the delegation of trustees' duties, while still maintaining the core principle that trustees must act in the best interests of the beneficiaries.

What Was Important About the Decision in Re Butterworth (1881-81)