Case information

Trusts — Extent to which terms of a trust may modify or exclude fundamental fiduciary duties of trustee — Limits on private autonomy and ability of settlors to circumscribe courts’ jurisdiction — Requirements to exclude or modify fundamental fiduciary duty and, if it can occur by implication, whether implication must arise from express term or may arise from surrounding circumstances — Principles applicable to interpretation of a trust and role, if any, of subjective intentions and surrounding circumstances.

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

In 1993, four brothers who ran family corporations implemented an estate freeze. Each created a family trust. Voting control and frozen and future value of the family corporations were distributed equally. In 2014, the family companies were re-organized and the trusts were wound-up. Only some beneficiaries retained voting control and future value of the family businesses. Two family trusts commenced litigation. The trial judge found breach of fiduciary duty, knowingly assisting breach of fiduciary duty and failure to act in good faith. She declared entitlement to disgorgement and granted remedies. The Court of Appeal granted an appeal.