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United Kingdom
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Key definition
Disputes definition

What does Disputes mean? In legal practice, disputes are disagreements giving rise to potential legal rights and remedies between parties, addressed through dispute resolution including litigation, arbitration and ADR such as mediation and negotiation. The term is descriptive rather than a defined statutory concept; the substantive rights and procedures arise from statute and common law. Typical features include identification of the cause of action, applicable limitation periods, choice of jurisdiction and forum, compliance with pre-action protocols or pre-action correspondence, disclosure/discovery, evidence, settlement, costs and enforcement. Usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, though civil procedure differs: CPR in England...

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Trustees' costs in trust disputes: entitlement to indemnity, CPR PD 46, friendly/hostile/third-party litigation, Beddoe and prospective costs orders, appeals and mediation (England and Wales)

Practice notes
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Trustees’ authority to incur costs General rule

Trustees drawn into litigation will typically wish to have their own costs, and any adverse costs orders, satisfied from the trust fund. Under section 31(1) of the Trustee Act 2000, a trustee may recover from the fund, or pay out of it, expenses properly incurred while acting for the trust. CPR 19.7A provides that proceedings can be started by or against trustees, executors or administrators in that representative capacity without joining beneficiaries, and any order made binds the beneficiaries unless the court decides otherwise. A trustee issues or defends proceedings in their own name.

The general position is that a trustee who is involved in litigation as trustee is entitled to be paid their costs from the trust fund on the indemnity basis, insofar as those costs are not recoverable from other parties to the case. Such expenditure is treated as incurred in the execution of the trust, and the trustee’s ordinary right of indemnity from the fund applies, provided the costs were properly incurred. CPR PD 46, para 1.1 sets out...

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Web page updated on 22/05/2026

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