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A and B, two of the granters of a family trust-deed, raised an action for reduction of the deed, in which they called as defenders C and D, the surviving trustees under the deed, as trustees, and C and E as individuals. C and E were parties to the deed under reduction. A and B alleged that the deed in question had been impetrated from them by the fraud of C and E. E, who was resident abroad, was asked by the trustees to give evidence in support of the trust-deed, and to rebut the charges of fraud, and he accordingly came to Scotland, attended at the proof, and gave evidence. The court found that the charges of fraud were unfounded, and upheld the trust-deed.
Held that E was entitled to the outlay incurred by him in coming to this country and giving evidence at the Proof—( per the Lord President) on the ground that he had been asked by the trustees, as the defenders of the trust-deed, to appear as a witness on their behalf, and that in that capacity he was entitled to his outlay; and ( per Lords Adam and M'Laren) on the general principle that where a party to a case is examined as a witness, whether in his own favour or at the instance of his adversary, he gives his evidence under the same conditions as any other witness, and that if his evidence is necessary he is entitled to his expenses.
James Dairon and Mrs Catherine Dairon or Fleming, two of the children of the late James Dairon, raised an action for reduction of a trust-deed, which had been granted by the pursuers and their brothers Edward Dairon and David Dairon in favour of the said Edward Dairon, Andrew Dairon, another brother since deceased, and Mr John Brownlie, the family law-agent, as trustees, in which they called as defenders Edward Dairon and Mr Brownlie as trustees, and Edward Dairon and David dairon as individuals. Under the trust-deed in question the heritable property left to the trusters by their father was conveyed to the trustees in trust, and the purposes of the trust were to pay the free income of the trust-estate in equal proportions to the members of the family, and in the event of any of them dying unmarried and without issue, to the survivors. Any member of the family dying and leaving a wife or husband was empowered to give such wife or husband a liferent of his or
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her share, and children were entitled to succeed to their parents' share and to demand payment thereof. The pursuers averred that the deed took the shape in which it was executed on the instructions of Edward and David Dairon, who were the only members of the family who had children, and that it was “part of a fraudulent scheme conceived by them in the interests of themselves and their families.” The pursuers further averred that they executed the deed under essential error.
A proof was allowed, and David Dairon, one of the defenders, who resided in British Columbia, was called and examined as a witness by the defending trustees. Thereafter the Lord Ordinary (Low) on 11th August 1899 repelled the reasons of reduction and assoilzied the defenders.
The pursuers reclaimed to the First Division, who on 22nd June 1900 refused the reclaiming-note, found the defenders entitled to additional expenses, remitted the account thereof to the Auditor, and remitted to the Lord Ordinary with power to decern for the taxed expenses.
On 6th July the Lord Ordinary found the defenders entitled to expenses so far as the same had not been already disposed of, and remitted to the Auditor to tax the accounts thereof.
The pursuers objected to the Auditor's report on the defenders' account of expenses, in respect that he failed to tax off, inter alia, the following item:—“2. David A. Dairon, plasterer, Vancouver, British Columbia, 36 days at £1, 1s.; travelling expenses between Vancouver and Montreal, £3S, 12s.; and passage money between Montreal and Glasgow, £25 (charged £101, 8s.), (taxed at £63).”
The Lord Ordinary (Low) on 20th July 1900 pronounced the following interlocutor:—“The Lord Ordinary having heard counsel for the parties on the note of objections for the pursuers to the Auditor's report on the defenders' account of expenses, taxing the same at £403, 1s. 8d., Sustains the said objections to the extent of £61, 11s. 6d., and finds that the same falls to be deducted from the said sum of £403, 1s. 8d., and leaves a sum of £341, 10s. 2d. as the amount of the defenders' said expenses,” &c.
The defenders reclaimed, and argued—By the Act of Sederunt 15th July 1876, sec. 5, sub-sec. 3, a witness coining from abroad to give evidence was entitled to his expenses. As under the Evidence Act of 1853 (16 Vict. c. 20) it was competent for the parties in a cause to give evidence, there was no reason why the provisions of the Act of Sederunt 1876 should not apply to them— Willcox & Gibbs' Sewing Machine Company v. Stirling & Sons, November 19, 1869, 7 S.L.R. 98.
Argued for the respondents—David Dairon being a party to the case must necessarily be present to defend it. He was morally bound to come and defend his character, and the fact that he happened to give evidence did not entitle him to the expense of his attendance. Till 1853 parties were not allowed to be witnesses in their own cause. The cases in which any expenses had been given were limited to those in which a defender had been examined by the pursuer as a haver, or on reference to oath of party—that is, really as the pursuer's own witness, and even in these only travelling expenses had been allowed— M'Gill v. Ferrier, December 2, 1836, 15 S. 178; Thorburn's Trustees v. Short, May 22, 1838, 16 S. 1016. The regulations of the Act of Sederunt 15th July 1876 were repeated from the Act of Sederunt 10th July 1844, which was passed before the evidence of parties was competent, so they clearly did not entitle a party giving evidence to his expenses— Rough v. Lyell, January 21, 1854, 16 D. 381. A party was not entitled to the expenses of pleading his own cause, and there was no reason why he should be entitled to those of giving evidence on his own behalf— Forbes v. Whyte, March 17, 1891, 18 R. 688. Moreover, the witness might have been examined on commission, and unnecessary expense would thus have been saved.
But we have heard an argument which covers a much larger ground. It is maintained by the pursuers as a general rule that a party to a cause is not entitled to expenses—even outlays incurred by him as a witness—and although he may be a necessary witness, and whatever the nature of the case may be. In this case a very serious charge of fraud was made on record against this defender, and it would be an unfortunate state of the law if an innocent party was not, under such circumstances, entitled to come and deny such a charge except on condition of paying his own outlays. In this case both the Lord Ordinary and the Court have held the charge of fraud to be wholly unfounded, and it would require much stronger authority than has been quoted to us to dispose me to hold that a witness is not in such circumstances to have his outlays merely because he is a party to the case. But the first ground which I have stated is, in my judgment, sufficient to warrant us in holding that David Dairon is, as a witness, entitled to the very moderate sum in name of outlays which was allowed by the Auditor.
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It is strange that this point is raised for the first time so many years after the date of the Evidence Act by which it was made competent for parties to appear as witnesses, and the fact that no distinction has been taken during all this time (for I presume the Auditor has followed the practice of his office) leads me to suppose that a contrary view could not be maintained. If that be so, the only question is whether the evidence given by David Dairon was necessary for the determination of the case. It was said that a party is not to be allowed expenses for conducting his own cause. I agree in the decision quoted, in which I concurred, that no party can be allowed such expenses, because he is entitled to appear by counsel, and if he does not choose to avail himself of that privilege and thinks he can conduct his case better in person his election is not to be the means of subjecting the other party to a new liability. But if a person gives evidence he must do so in person, and I cannot see how he differs from any other witness.
As to the materiality of the evidence, I think that where a person is charged with fraud there is a direct challenge to him to appearand maintain the deed or the benefit which is said to have been obtained by fraud. I cannot figure a clearer case for allowing the application of the ordinary rule.
I would add that while the Auditor's allowance has been reduced by £62, and the present reclaiming-note is only direct e to having that amount allowed, if the matter had been open I should have seen no reason for distinguishing between travelling expenses and subsistence money. If a witness is entitled to journey-money as costs in the cause, he must live on the way, and he is entitled to an allowance for subsistence in so far as it is not covered (as in the case of a steam-ship voyage) by the passenger fare.
The Court pronounced this interlocutor—“Recal the said interlocutor [of 4th December 1900]: Repel the objections by the pursuers to the Auditor's report on the defenders' account of expenses: Approve of said report, taxing the same at £403, 1s. 8d., and decern for payment thereof to the defenders: Find the reclaimers entitled to the expenses of and connected with the objections to the Auditor's report in the Outer House and also to the expenses of the reclaiming-note,” &c.
Counsel for the Pursuers— Jameson, Q.C.— C. D. Murray. Agent— James E. Gordon, W.S.
Counsel for the Defenders— Clyde. Agent— James Skinner, S.S.C.