Derby was the son of James Smith-Stanley, Lord Strange, son of Edward Stanley, 11th Earl of Derby. His mother was Lucy, daughter and co-heir of Hugh Smith of Weald Hall, Essex. His father had assumed the additional surname of Smith by Act of Parliament in 1741. Derby entered Eton College in 1764, proceeding to Trinity College, Cambridge in 1771.[1]
Derby was returned to Parliament as one of two representatives for Lancashire in 1774, a seat he held until 1776,[1][2] when he succeeded his grandfather in the earldom and entered the House of Lords. He served as Chancellor of the Duchy of Lancaster between April and December 1783[1][3] in the Fox-North Coalition headed by the Duke of Portland and was sworn of the Privy Council the same year.[3] He remained out of office for the next 23 years but was once again Chancellor of the Duchy of Lancaster between 1806 and 1807 in the Ministry of All the Talents headed by Lord Grenville.[1]
Lord Derby also served as Lord Lieutenant of Lancashire between 1776 and 1834.[1] He was also listed as a subscriber to the Manchester Bolton & Bury Canal navigation in 1791.[4]
At a dinner party in 1778 held on his estate "The Oaks" in Carshalton, Lord Derby and his friends planned a sweepstake horse race, won the following year by Derby's own horse, Bridget. The race, the Epsom Oaks, has been named after the estate since. At a celebration after Bridget's win, a similar race for colts was proposed and Derby tossed a coin with Sir Charles Bunbury for the honour of naming the race. Derby won, and the race became known as the Derby Stakes. Bunbury won the initial race in 1780 with his horse, Diomed; Derby himself won it in 1787 with Sir Peter Teazle.[citation needed]
