Supreme Court of Canada
Public Trustee v. Lauer, [1976] 1 S.C.R. 781
Date: 1975-05-13
The Public Trustee Appellant;
and
Marianne Helen Lauer
and
Jolan Stekl, Trustee of the Estate of Albert Stekl, Deceased Respondents.
1975: May 13; 1975: May 13.
Present: Laskin C.J. and Martland, Pigeon, Dickson and Beetz JJ.
ON APPEAL FROM THE COURT OF APPEAL FOR BRITISH COLUMBIA
Trusts and trustees—Will creating trust for conversion notwithstanding powers to postpone—Trust covering all assets of estate including unproductive realty—Duty of trustee to act impartially between life tenant and remaindermen—Life tenant entitled to be credited with notional income on value of assets.
APPEAL from a judgment of the Court of Appeal for British Columbia, allowing in part an appeal from a judgment of Hutcheon L.J.S.C. Appeal dismissed.
D.M. Norby, for the appellant.
B.W.F. McLoughlin, Q.C., for the respondent, Marianne Helen Lauer.
The judgment of the Court was delivered orally by
THE CHIEF JUSTICE—We do not need to hear you, Mr. McLoughlin. We are all of the opinion that the will in this case created a trust for conversion notwithstanding the powers to postpone, and this trust covered all the assets of the estate including the unproductive realty. Having regard to the duty of the trustee under the will to act impartially between life tenant and remaindermen, the life tenant was entitled to be credited with a notional income on the value of the assets, as determined by the Court of Appeal. We would accordingly answer question 2(a) and (b) as answered by the Court of Appeal. It follows that this appeal must
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be dismissed with the costs of the respondent payable out of the capital of estate. We award no costs to the appellant Public Trustee.
Appeal dismissed.
Solicitor for the appellant: D.M. Norby, Vancouver.
Solicitors for the respondent, Marianne Helen Lauer: Lawrence & Shaw, Vancouver.
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