Beddoe order

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An order made by the court granting trustees permission to incur expense on behalf of the trust by bringing or defending an action. The order protects the trustees against claims by the beneficiaries that the action should not have been brought and enables the trustees to recover the costs from the trust property. If an order has not been obtained, these consequences may not follow, and the trustees may be personally liable to the beneficiaries for any loss incurred on behalf of the trust and also may themselves have to pay any costs to the trust arising from the action. The name derives from the case Re Beddoe (Downes v Cottam) [1893] 1 Ch 547.

Subjects: Law.

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