South Downs Trustees Ltd v GH & Ors [2018] EWHC 1064 (Ch) (16 May 2018)

South Downs Trustees Ltd v GH & Ors [2018] EWHC 1064 (Ch) (16 May 2018)

The Trustee lacked power under clause 7 of the EBT to dispose of its entire shareholding, but the court conferred such power under section 57 Trustee Act 1925, finding the transaction expedient for all beneficiaries. The Deed of Grant was set aside due to a serious mistake. The court approved the Trustee's momentous decision to sell the shares under Public Trustee v Cooper. Representation orders for beneficiary classes were appropriate. Confidentiality orders were justified given commercial sensitivities and privileged information.

Citation
[2018] EWHC 1064 (Ch)
Parties
Claimant: South Downs Trustees Limited; Defendant: GH; Defendant: IJ; Defendant: KL
Jurisdiction
England and Wales
Judgment Date
16 May 2018
Procedural Posture
Part 8 Claim / Judgment After Hearing
Outcome
Orders granted as sought by the Trustee.
Legal Topics
Trustee Powers, Court Approval of Trustee Decisions, Mistake in Trust Deeds, Representation Orders, Confidentiality in Court Proceedings
Trusts Property Law Equity Trustee Powers Court Approval of Trustee Decisions Mistake in Trust Deeds Representation Orders Confidentiality in Court Proceedings

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Parties

South Downs Trustees Limited

Claimant

GH

Defendant

IJ

Defendant

KL

Defendant

Procedural Posture

Part 8 Claim / Judgment After Hearing

Legal Issues

  1. 1 Whether the Trustee has power to dispose of shares contrary to clause 7 of the EBT
  2. 2 Whether the Deed of Grant should be set aside for mistake
  3. 3 Whether the court should approve the Trustee's decision under Public Trustee v Cooper

Ratio Decidendi

The Trustee lacked power under clause 7 of the EBT to dispose of its entire shareholding, but the court conferred such power under section 57 Trustee Act 1925, finding the transaction expedient for all beneficiaries. The Deed of Grant was set aside due to a serious mistake. The court approved the Trustee's momentous decision to sell the shares under Public Trustee v Cooper. Representation orders for beneficiary classes were appropriate. Confidentiality orders were justified given commercial sensitivities and privileged information.

Court Disposition

Orders granted as sought by the Trustee.

Orders

  • Defendants appointed as representatives for Pot A, Pot B, and Joint Pot Beneficiaries.
  • Deed of Grant set aside and declared void ab initio.