Safe Hands Plans Ltd, Re (Re Insolvency Act 1986) [2023] EWHC 2025 (Ch) (08 August 2023)

Safe Hands Plans Ltd, Re (Re Insolvency Act 1986) [2023] EWHC 2025 (Ch) (08 August 2023)

The trust deed (clause 4.8) confers a discretionary power of appointment that survives insolvency and is not restricted by the pari passu requirement in clause 4.6; the omission of clause 4.6 from the proviso to clause 4.8 was intentional, allowing the administrators to pay for funerals in the transitional period if the court approves. The court, applying the Public Trustee v Cooper principles, found the administrators' decision rational, honest, and within their powers, and approved the payment to Dignity Funerals Limited from the trust assets.

Citation
[2023] EWHC 2025 (Ch)
Parties
Applicant (joint Administrator of Safe Hands Plans Limited): Nedim Patrick Ailyan; Applicant (joint Administrator of Safe Hands Plans Limited): Ben Stanyon; Interested Party: Dignity Funerals Limited; Objectors/beneficiaries: Plan Holders (represented by Mr Willson)
Jurisdiction
England and Wales
Judgment Date
08 August 2023
Procedural Posture
Insolvency Application (directions/sanction) / Judgment on Application for Court Approval of Payment From Trust Assets
Outcome
Application granted; court approves payment to Dignity Funerals Limited from trust assets.
Legal Topics
Court Approval of Trustee/administrator Actions, Interpretation of Trust Deeds, Pari Passu Distribution in Insolvency, Exercise of Discretionary Trust Powers, Payment of Expenses From Trust Assets
Insolvency Trusts and Estates Company Law Court Approval of Trustee/administrator Actions Interpretation of Trust Deeds Pari Passu Distribution in Insolvency Exercise of Discretionary Trust Powers Payment of Expenses From Trust Assets

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Nedim Patrick Ailyan

Applicant (joint Administrator of Safe Hands Plans Limited)

Ben Stanyon

Applicant (joint Administrator of Safe Hands Plans Limited)

Dignity Funerals Limited

Interested Party

Plan Holders (represented by Mr Willson)

Objectors/beneficiaries

Procedural Posture

Insolvency Application (directions/sanction) / Judgment on Application for Court Approval of Payment From Trust Assets

Legal Issues

  1. 1 Whether the trust deed empowered administrators to pay funeral costs from trust assets in insolvency
  2. 2 Whether the court should approve/sanction the exercise of that power under the trust deed
  3. 3 Whether payment to Dignity Funerals Limited is consistent with the pari passu principle and the interests of all plan holders

Ratio Decidendi

The trust deed (clause 4.8) confers a discretionary power of appointment that survives insolvency and is not restricted by the pari passu requirement in clause 4.6; the omission of clause 4.6 from the proviso to clause 4.8 was intentional, allowing the administrators to pay for funerals in the transitional period if the court approves. The court, applying the Public Trustee v Cooper principles, found the administrators' decision rational, honest, and within their powers, and approved the payment to Dignity Funerals Limited from the trust assets.

Court Disposition

Application granted; court approves payment to Dignity Funerals Limited from trust assets.

Orders

  • Administrators are authorised to pay Dignity Funerals Limited £615,629.65 from the trust assets for 416 funerals provided under the agreement.