Foo Jee Seng v Foo Jhee Tuang: Trust for Sale, Trustee Discretion, and Will Construction
In Foo Jee Seng and others v Foo Jhee Tuang and another, the High Court of Singapore, on 28 October 2011, dismissed the plaintiffs' application to compel the first defendant, as trustee, to sell a property held under an express trust created by their father's will. The plaintiffs sought the sale and distribution of proceeds, arguing the rental income was no longer reasonable. Justice Judith Prakash upheld the trustee's discretion to postpone the sale, finding no evidence of bad faith or improper consideration in the trustee's decision. The case involved the construction of the will and the court's limited supervisory role over trustees' discretionary powers.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiffs' application dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court dismissed an application to compel the sale of property held in trust, affirming the trustee's discretion to postpone the sale. The case concerned the interpretation of a will and the court's supervisory role over trustees.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Foo Jee Boo | Plaintiff | Individual | Application Dismissed | Lost | |
| Foo Li Li | Plaintiff | Individual | Application Dismissed | Lost | |
| Foo Jhee Tuang | Defendant | Individual | Application Dismissed | Won | |
| Foo Jee Seng | Plaintiff | Individual | Application Dismissed | Lost | |
| Foo Chin Chin | Defendant | Individual | Neutral | Neutral |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
4. Facts
- The testator created an express trust in his will, devising a property to trustees to sell and distribute the proceeds to beneficiaries.
- The will granted the trustees the power to postpone the sale of the property at their discretion.
- The property was rented out to multiple tenants, generating rental income for the family.
- The plaintiffs, beneficiaries under the trust, sought to compel the trustee to sell the property and distribute the proceeds.
- The trustee argued that the will intended the property to be used as an investment, and he had exercised his discretion in good faith to postpone the sale.
- The rental income from the property was relatively low, and the plaintiffs argued it was no longer reasonable to withhold the sale.
- The property's value had significantly appreciated since the testator's death.
5. Formal Citations
- Foo Jee Seng and others v Foo Jhee Tuang and another, Originating Summons No 909 of 2010, [2011] SGHC 235
6. Timeline
| Date | Event |
|---|---|
| Will dated | |
| Testator passed away | |
| Grant of probate obtained | |
| Mdm Yap's will dated | |
| Mdm Yap's death | |
| Grant of double probate obtained | |
| Caveat lodged by the third plaintiff | |
| Caveat lodged jointly by the first and second plaintiffs | |
| Caveat lodged by the second defendant | |
| Originating Summons filed | |
| Title search conducted | |
| Second defendant filed an affidavit | |
| Summons filed by the first defendant | |
| Orders granted to the first defendant | |
| Plaintiffs' application dismissed | |
| Decision Date |
7. Legal Issues
- Trust for Sale
- Outcome: The court determined that the will created a trust for sale, granting the trustee the power to postpone the sale.
- Category: Substantive
- Trustee's Discretion
- Outcome: The court held that it would not interfere with the trustee's bona fide exercise of discretion to postpone the sale, absent bad faith.
- Category: Substantive
- Will Construction
- Outcome: The court construed the will to determine the testator's intention regarding the sale of the property and distribution of proceeds.
- Category: Substantive
8. Remedies Sought
- Order for Sale of Property
- Accounting of Profits
9. Cause of Actions
- Breach of Trust
10. Practice Areas
- Trusts and Estates
- Estate Planning
- Real Estate Law
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Public Trustee v Cooper | N/A | Yes | [2001] WTLR 901 | England and Wales | Cited for the four distinct situations where the court can supervise trustees in their exercise of their discretionary powers. |
| Marquis Camden v Murray | N/A | Yes | 16 Ch D 161 | England and Wales | Cited for the principle of non-intervention, where the court is reluctant to substitute the trustees’ discretion with that of the court’s, in the absence of mala fides. |
| Tempest v Lord Camoys | N/A | Yes | (1882) 21 Ch. D. 571 | England and Wales | Cited for the principle that the court would also not interfere with the particular time and manner of the trustees’ bona fide exercise of their power. |
| In re Kipping | N/A | Yes | [1914] 1 Ch 62 | England and Wales | Cited for the proposition that the beneficiary was not entitled to interfere with the bona fide exercise by the trustees of their discretion and to call upon them to sell the trust property. |
| Re Londonderry’s Settlement | N/A | Yes | [1965] Ch 918 | England and Wales | Cited for the principle that the settlor had chosen to entrust the powers to the trustees, not to the court, and there is no reason for the court to assume these for itself. |
| Leo Teng Choy v Leo Teng Kit and ors | Court of Appeal | Yes | [2000] 3 SLR(R) 636 | Singapore | Cited for the general principle of will construction that the court should ascertain the intention of the testator from the will as a whole, in the light of any extrinsic evidence admissible for the purpose of its construction. |
| Re Will of Loke Soh Lui | N/A | Yes | [1997] 3 SLR(R) 956 | Singapore | Cited for the principle that one has to give effect to a will to accord with the testator's intention as disclosed by the will. |
13. Applicable Rules
| Rule Name |
|---|
| Order 80 Rule 2 of the Rules of Court |
| Order 9 Rule 4 ROC |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Rules of Court (Cap 322, 2006 Rev Ed) | Singapore |
| Trustees Act (Cap 337, 2005 Rev Ed) | Singapore |
| Supreme Court of Judicature Act (Cap 322, 1998 Rev Ed) | Singapore |
| Settled Estates Act 1970 (Cap 39) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Trust for Sale
- Trustee Discretion
- Will Construction
- Beneficiaries
- Postponement of Sale
- Rental Income
- Settlement
- Doctrine of Conversion
15.2 Keywords
- trust
- will
- property
- sale
- trustee
- discretion
- beneficiary
- construction
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Trust Law | 90 |
| Wills and Probate | 85 |
| Will Interpretation | 80 |
| Trust for Sale | 70 |
| Property Law | 60 |
16. Subjects
- Trusts
- Wills
- Real Property
- Equity