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In Re Hallet’s Estate Notes

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FACTS By the marriage settlement of Henry Hughes Hallett , made in 1847, a sum of PS2300 was settled for the benefit of Hallett , his wife and his children. Several changes were made in the investment of this fund, and the trustees had allowed the fund to come into the hands of Hallett. Hallett held a considerable number of Russian bonds, and in the opinion of the Court it was proved that he had in 1877 allotted Russian bonds of the nominal amount of PS1554 and PS1036, making together PS2590, as representing the trust funds under the settlement. The bonds for PS1554 he retained in his own hands; and his son, shortly before his death, found them and delivered them to the trustees of the settlement by whom they were sold. The bonds for PS1036 were deposited by Hallett with his bankers. As to a claim by Mrs. Cotterill . Henry Hughes Hallett had for many years been employed by Mrs. Cotterill as her solicitor; and she had been in the habit of depositing with him securities for money, and in the opinion of the Court it was proved that he had bought or appropriated and did in 1877 hold for her Russian bonds of PS450 and PS2242, nominal amount. In November, 1877, Hallett , without any authority from the trustees or from Mrs. Cotterill , directed his bankers, Messrs. Twining , to sell, and they accordingly sold, one of the sets of bonds representing the trust fund and both sets of Mrs. Cotterill's bonds. This sum was deposited into Hallet's personal bank account. Hallett had before his death drawn out different sums for his own purposes, so that the balance to his credit at the time of his death (if nothing more had been paid in by him after the 14th of November) would have been PS1708 16s. He had, however, paid in other sums, so that he had at the time of his death, which was in February, 1878, a balance at his bankers of PS3029 15s. 1d. The trustees of the settlement applied by summons in the action for payment of PS770 10s. 5d. out of the PS2600, and for a declaration that the produce of the sale of the bonds for PS1554 belonged to them. Mrs. Cotterill applied for payment of the PS1708 16s. balance. ISSUES Two issues arose for consideration from these facts:

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