South Downs Trustees Ltd v GH & Ors

South Downs Trustees Ltd v GH & Ors

The court set aside the Deed of Grant due to a serious mistake, granted the Trustee power under section 57 Trustee Act 1925 to dispose of shares contrary to trust restrictions, approved the Trustee's decision to sell shares and wind up the trust as reasonable and expedient, and made representation orders for the three classes of beneficiaries.

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
Outcome
Claim allowed; orders granted as sought.
Legal Topics
Trustee Powers, Employee Benefit Trusts, Share Sale, Representation Orders, Mistake in Trust Deed, Court Approval of Trustee Decisions
Trusts Property Employment Trustee Powers Employee Benefit Trusts Share Sale Representation Orders Mistake in Trust Deed +1 more

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Parties

South Downs Trustees Limited

Claimant

GH

Defendant

IJ

Defendant

KL

Defendant

Procedural Posture

Part 8 Claim / Judgment

Legal Issues

  1. 1 Whether the Deed of Grant should be set aside for mistake
  2. 2 Whether the Trustee should be granted power to dispose of shares contrary to trust restrictions
  3. 3 Whether the Trustee's decision to sell shares and wind up the trust should be approved by the court

Ratio Decidendi

The court set aside the Deed of Grant due to a serious mistake, granted the Trustee power under section 57 Trustee Act 1925 to dispose of shares contrary to trust restrictions, approved the Trustee's decision to sell shares and wind up the trust as reasonable and expedient, and made representation orders for the three classes of beneficiaries.

Court Disposition

Claim allowed; orders granted as sought.

Orders

  • Deed of Grant set aside and declared void ab initio.
  • Trustee granted power under section 57 Trustee Act 1925 to dispose of shares as per SPA.