RBC Trustees (CI) Ltd & Ors v Stubbs & Ors [2017] EWHC 180 (Ch) (07 February 2017)

RBC Trustees (CI) Ltd & Ors v Stubbs & Ors [2017] EWHC 180 (Ch) (07 February 2017)

The evidence established that the trustees and settlor intended only to remove the spouses' successive life interests and not to revoke and reappoint the life interests of Joanna and Michael. The 2008 and 2014 Deeds failed to reflect this intention due to a drafting mistake. The criteria for rectification are satisfied: clear evidence of intention, a flaw in the document, a specific intention as to the mechanism, and a contestable issue beyond mere fiscal consequences. Rectification is granted.

Citation
[2017] EWHC 180 (Ch)
Parties
Claimant: RBC Trustees (CI) Limited; Claimant: Elizabeth Mary Le Poidevin; Claimant: Philip James Jackman Le Vesconte; Claimant: RBC Trust Company (Jersey) Limited; Defendant: Mrs Janatha Stubbs; Defendant: George Merrick Stubbs; Defendant: Rohan George Laing; Defendant: Kian John Daniel Laing
Jurisdiction
England and Wales
Judgment Date
07 February 2017
Procedural Posture
Chancery Division Application for Rectification or Rescission / Judgment on Application for Rectification or Rescission of Trust Deeds
Outcome
Application for rectification granted
Legal Topics
Rectification of Trust Deeds, Mistake in Trust Instruments, Inheritance Tax Consequences, Trustee Powers, Rescission for Mistake
Equity Trusts Taxation Rectification of Trust Deeds Mistake in Trust Instruments Inheritance Tax Consequences Trustee Powers Rescission for Mistake

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Parties

RBC Trustees (CI) Limited

Claimant

Elizabeth Mary Le Poidevin

Claimant

Philip James Jackman Le Vesconte

Claimant

RBC Trust Company (Jersey) Limited

Claimant

Mrs Janatha Stubbs

Defendant

George Merrick Stubbs

Defendant

Rohan George Laing

Defendant

Kian John Daniel Laing

Defendant

Procedural Posture

Chancery Division Application for Rectification or Rescission / Judgment on Application for Rectification or Rescission of Trust Deeds

Legal Issues

  1. 1 Whether the 2008 and 2014 Deeds should be rectified to reflect the true intention of the trustees and settlor
  2. 2 Whether the Deeds should be rescinded for mistake if rectification is not available
  3. 3 Whether the mistake was as to the effect of the Deeds or merely as to their fiscal consequences

Ratio Decidendi

The evidence established that the trustees and settlor intended only to remove the spouses' successive life interests and not to revoke and reappoint the life interests of Joanna and Michael. The 2008 and 2014 Deeds failed to reflect this intention due to a drafting mistake. The criteria for rectification are satisfied: clear evidence of intention, a flaw in the document, a specific intention as to the mechanism, and a contestable issue beyond mere fiscal consequences. Rectification is granted.

Court Disposition

Application for rectification granted

Orders

  • The 2008 and 2014 Deeds are to be rectified to remove only the spouses' successive life interests and not to affect the life interests of Joanna and Michael.
  • Parties to draw up an appropriate order reflecting this judgment.