Irwin Mitchell Trust Corporation v PW & Anor

Irwin Mitchell Trust Corporation v PW & Anor

The appointment by IMTC of IMAM to manage PW's assets constitutes an actual conflict of interest under the self-dealing rule, as IMTC benefits financially from the appointment. The processes adopted by IMTC, including beauty parades and family involvement, do not extinguish the conflict. There is no prior ratification by the Court or Public Guardian. Only the Court can authorise such self-dealing, and there is insufficient evidence before the Court to determine whether ratification is in PW's best interests at this time.

Parties
Applicant: Irwin Mitchell Trust Corporation; First Respondent: PW (by her litigation friend the Official Solicitor); Second Respondent: The Public Guardian
Jurisdiction
England and Wales
Judgment Date
16 November 2024
Procedural Posture
Court of Protection Property and Affairs Deputyship / Judgment on Application for Retrospective Ratification of Appointment of Related Investment Manager
Outcome
No ratification granted at this stage; further directions to be agreed or listed for hearing.
Legal Topics
Conflict of Interest, Fiduciary Duties, Self Dealing Rule, Deputyship, Investment Management
Mental Capacity Equity and Trusts Conflict of Interest Fiduciary Duties Self Dealing Rule Deputyship Investment Management

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Parties

Irwin Mitchell Trust Corporation

Applicant

PW (by her litigation friend the Official Solicitor)

First Respondent

The Public Guardian

Second Respondent

Procedural Posture

Court of Protection Property and Affairs Deputyship / Judgment on Application for Retrospective Ratification of Appointment of Related Investment Manager

Legal Issues

  1. 1 Does the appointment by the Deputy of a related investment manager breach the rule against conflict of interest?
  2. 2 Does such appointment require ratification by the Court?
  3. 3 Have the processes adopted by the Deputy extinguished any real sensible possibility of conflict?

Ratio Decidendi

The appointment by IMTC of IMAM to manage PW's assets constitutes an actual conflict of interest under the self-dealing rule, as IMTC benefits financially from the appointment. The processes adopted by IMTC, including beauty parades and family involvement, do not extinguish the conflict. There is no prior ratification by the Court or Public Guardian. Only the Court can authorise such self-dealing, and there is insufficient evidence before the Court to determine whether ratification is in PW's best interests at this time.

Court Disposition

No ratification granted at this stage; further directions to be agreed or listed for hearing.

Orders

  • Parties to seek agreement as to further directions or file a COP9 application with draft order within 21 days.