Leo Teng Choy v Leo Teng Kit: Construction of Wills & Trustees' Powers

In Leo Teng Choy v Leo Teng Kit, the Court of Appeal of Singapore heard an appeal regarding the construction of the will of Leo Ann Peng (LAP) and the authorization of the sale of a property. The High Court had ordered the sale, and the appellant, Leo Teng Choy, appealed. The Court of Appeal dismissed the appeal, finding that authorizing the sale was in consonance with the overriding intention of the testator to treat his sons evenly. The court lifted the stay order and directed that the property be sold within 90 days.

1. Case Overview

1.1 Court

Court of Appeal

1.2 Outcome

Appeal dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding the construction of a will and the authorization of property sale. The court dismissed the appeal, allowing the sale to proceed.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Leo Teng ChoyAppellantIndividualAppeal DismissedLost
Leo Teng KitRespondentIndividualAppeal DismissedWon
Leoh Teng HeeRespondentIndividualAppeal DismissedWon
Leo Tang FohRespondentIndividualAppeal DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Chao Hick TinJustice of AppealYes
Tan Lee MengJudgeNo
L P TheanJustice of AppealNo

4. Counsels

4. Facts

  1. LAP made his Will on 26 March 1970 and died on 28 September 1989.
  2. The Will appointed two sons, Leo Teng Kit and Leo Teng Choy, as trustees.
  3. The testator owned a property at No 42 Phillips Avenue.
  4. The Will allowed his wife and four sons to reside in the property rent-free.
  5. The Will directed that the property shall not be sold unless unanimously agreed upon by the four sons.
  6. Three sons filed an originating summons for an order to sell the property.
  7. The High Court ordered the sale of the property, and one son appealed.

5. Formal Citations

  1. Leo Teng Choy v Leo Teng Kit and Others, CA 26/2000, [2000] SGCA 63

6. Timeline

DateEvent
LAP made his Will
Leoh Teng Hee and his wife moved out of the family home
LAP died
Leo Teng Kit and his family moved out of the property
Heng Took Kin suffered a stroke and was hospitalised
Leo Teng Choy threw away furniture and belongings of the respondents and their mother
Heng Took Kin made a statutory declaration
Respondents filed an originating summons for an order to sell the property
Heng Took Kin passed away
Judge ordered that the property be sold
Appeal dismissed

7. Legal Issues

  1. Construction of Wills
    • Outcome: The court construed the will to determine the testator's intention regarding the sale of the property.
    • Category: Substantive
    • Sub-Issues:
      • Ascertaining testator's intention
      • Interpreting clauses related to property sale
    • Related Cases:
      • [1945] Ch 145
      • [1998] 2 SLR 439
      • [1964] 2 All ER 66
      • [1967] 3 All ER 343
      • [1853] 4 De GM & G 73
  2. Trustees' Powers
    • Outcome: The court determined the scope of its power to authorize the sale of the property under the Trustees Act.
    • Category: Substantive
    • Sub-Issues:
      • Scope of powers under Trustees Act
      • Court's discretion to authorize sale
    • Related Cases:
      • [1990] SLR 1066
      • [1953] Ch 218
      • [1937] Ch 431
      • [1959] NZLR 1360

8. Remedies Sought

  1. Order to sell the property

9. Cause of Actions

  • No cause of actions

10. Practice Areas

  • Trust Law
  • Estate Planning
  • Wills and Probate

11. Industries

  • No industries specified

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Duke of Marlborough v A-G (No 2)Chancery DivisionYes[1945] Ch 145England and WalesCited and applied for the principle that an immediate trust for sale exists even when subject to consent or postponement.
Rajabali Jumabhoy & Ors v Ameerali R JumabhoyCourt of AppealYes[1998] 2 SLR 439SingaporeCited and applied for the principle that a power to postpone sale does not prevent a trust for sale from being created.
Re Herklots` Will TrustsUnknownYes[1964] 2 All ER 66England and WalesCited in relation to the construction of wills and trusts for sale, but distinguished on the facts.
Saunders v VautierRolls CourtYes[1841] 4 Beav 115England and WalesCited for the principle that beneficiaries can extinguish a trust if they unanimously agree.
Re Downshire Settled EstatesCourt of AppealYes[1953] Ch 218England and WalesEndorsed for the view that 'management or administration' of property means the managerial supervision and control of trust property on behalf of the beneficiaries.
Re Craven`s Estate (No 2); Lloyds Bank v CockburnChancery DivisionYes[1937] Ch 431England and WalesCited for the principle that the power of the court should only be exercised for the benefit of the whole trust.
Re DawsonUnknownYes[1959] NZLR 1360New ZealandCited for the principle that the proposed transaction does not need to benefit each and every individual beneficiary.
Re Evan`s SettlementUnknownYes[1967] 3 All ER 343England and WalesCited for the principle that the court should look at other clauses of the will to determine the overriding intention of the testator.
Kay v KayUnknownYes[1853] 4 De GM & G 73England and WalesCited for the principle that a strict literal construction must give way to a construction which is in accord with the broad objective of the testator.
British & Malayan Trustees Ltd v Abdul Jalil bin Ahmad & OrsHigh CourtYes[1990] SLR 1066SingaporeMentioned as having been ruled in error regarding the application of section 2(2) to section 56(1) of the Trustees Act.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Trustees Act (Cap 337) s 56(1)Singapore
Trustees Act (Cap 337) s 2(2)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Will
  • Trust
  • Trust for sale
  • Trustees
  • Beneficiaries
  • Construction of will
  • Trustees Act
  • Expedient
  • Overriding intention
  • Property sale

15.2 Keywords

  • Will construction
  • Trustees powers
  • Property sale
  • Singapore law
  • Trust law

17. Areas of Law

16. Subjects

  • Trust Law
  • Wills and Estates
  • Property Law