Trustee Corporation Ltd v. Nadir & Anor [2000] EWHC Ch 41 (12th December, 2000)

Trustee Corporation Ltd v. Nadir & Anor [2000] EWHC Ch 41 (12th December, 2000)

The court held that the application for a pre-emptive costs order must be dismissed because the case is a hostile claim between Mr Nadir and the trustees in bankruptcy over the beneficial interest in the fund, falling outside the categories where pre-emptive costs orders are appropriate. Further, Mr Nadir failed to...

Source-derived case information.

Citation
[2000] EWHC Ch 41
Parties
Claimant: Mr Asil Nadir; First Defendant: Mr Cooper and Mr Jacob (Trustees in Bankruptcy); Second Defendant: Trustee Corporation Ltd (TCL)
Jurisdiction
England and Wales
Procedural Posture
Application for Pre Emptive Costs Order in Trust Litigation / Judgment on Application for Pre Emptive Costs Order
Outcome
Application dismissed
Legal Topics
Bankruptcy and Vesting of Pension Rights, Pre Emptive Costs Orders, Protective Trusts, Interpretation of Pension Scheme Rules
Insolvency Trusts and Estates Pensions Bankruptcy and Vesting of Pension Rights Pre Emptive Costs Orders Protective Trusts Interpretation of Pension Scheme Rules

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Parties

Mr Asil Nadir

Claimant

Mr Cooper and Mr Jacob (Trustees in Bankruptcy)

First Defendant

Trustee Corporation Ltd (TCL)

Second Defendant

Procedural Posture

Application for Pre Emptive Costs Order in Trust Litigation / Judgment on Application for Pre Emptive Costs Order

Legal Issues

  1. 1 Whether Mr Nadir is entitled to a pre-emptive costs order to fund his legal representation from his interest in the pension plan
  2. 2 Whether the new rules of the pension plan override the statutory vesting of Mr Nadir's interest in his trustees in bankruptcy
  3. 3 Whether the court's pre-emptive costs jurisdiction extends to hostile claims between beneficiaries

Ratio Decidendi

The court held that the application for a pre-emptive costs order must be dismissed because the case is a hostile claim between Mr Nadir and the trustees in bankruptcy over the beneficial interest in the fund, falling outside the categories where pre-emptive costs orders are appropriate. Further, Mr Nadir failed to demonstrate inability to fund his representation, and the merits of his claim were not sufficiently strong to justify such an order.

Court Disposition

Application dismissed

Orders

  • Mr Nadir's application for a pre-emptive costs order is refused.