London Capital & Finance Plc v Global Security Trustees Ltd

London Capital & Finance Plc v Global Security Trustees Ltd

GST is ordered to pay LCF's costs of the claim on the indemnity basis because GST's resistance to removal was unreasonable, not in the interests of beneficiaries, and its conduct was not reasonably and properly incurred under the Security Trust Deed. GST is not entitled to indemnity for its own costs or liability to pay LCF's costs. Assignment of the Security Trust Deed is unnecessary as GST's role has been terminated by court order. GST's remuneration and unrelated costs require a separate application. No further order for disclosure of third party funding is required.

Parties
Claimant: London Capital & Finance Plc (in Administration); Defendant: Global Security Trustees Limited
Jurisdiction
England and Wales
Judgment Date
13 February 2020
Procedural Posture
Civil (trusts/probate) / Post Judgment (consequential Issues and Costs)
Outcome
GST to pay LCF's costs on the indemnity basis; GST not entitled to indemnity for its own costs or liability to pay LCF's costs; assignment of Security Trust Deed unnecessary; GST may apply regarding remuneration; no further order on third party funding disclosure.
Legal Topics
Removal of Trustee, Costs Orders, Trustee Indemnity, Assignment of Trust Deed, Trustee Remuneration, Third Party Funding Disclosure
Trust Law Civil Procedure Removal of Trustee Costs Orders Trustee Indemnity Assignment of Trust Deed Trustee Remuneration Third Party Funding Disclosure

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Parties

London Capital & Finance Plc (in Administration)

Claimant

Global Security Trustees Limited

Defendant

Procedural Posture

Civil (trusts/probate) / Post Judgment (consequential Issues and Costs)

Legal Issues

  1. 1 Whether GST should pay LCF's costs and on what basis
  2. 2 Whether GST is entitled to an indemnity for costs under the Security Trust Deed
  3. 3 Whether the Security Trust Deed should be assigned to the new trustee

Ratio Decidendi

GST is ordered to pay LCF's costs of the claim on the indemnity basis because GST's resistance to removal was unreasonable, not in the interests of beneficiaries, and its conduct was not reasonably and properly incurred under the Security Trust Deed. GST is not entitled to indemnity for its own costs or liability to pay LCF's costs. Assignment of the Security Trust Deed is unnecessary as GST's role has been terminated by court order. GST's remuneration and unrelated costs require a separate application. No further order for disclosure of third party funding is required.

Court Disposition

GST to pay LCF's costs on the indemnity basis; GST not entitled to indemnity for its own costs or liability to pay LCF's costs; assignment of Security Trust Deed unnecessary; GST may apply regarding remuneration; no further order on third party funding disclosure.

Orders

  • GST to pay LCF's costs of the claim on the indemnity basis, subject to detailed assessment.
  • GST to pay £150,000 on account of costs to LCF.