Hartogs v Sequent (Schweiz) AG & Ors

Hartogs v Sequent (Schweiz) AG & Ors

The claimant made voluntary transfers into trusts under an operative mistake as to the immediate inheritance tax consequences, based on incorrect professional advice. The mistake was sufficiently grave and causative, making it unconscionable to leave the transactions uncorrected. The court's equitable jurisdiction to set aside the transactions for mistake is engaged and should be exercised.

Parties
Claimant: Bernardo Guttenberg Willem Hartogs; Defendant: Sequent (Schweiz) AG; Defendant: Jema Universal Corporation; Defendant: Levar Universal SA
Jurisdiction
England and Wales
Judgment Date
26 June 2019
Procedural Posture
Part 8 Claim (civil) / Judgment After Hearing
Outcome
Claim allowed; transactions set aside
Legal Topics
Rescission for Mistake, Inheritance Tax, Trust Law, Jurisdiction of English Courts, Conflict of Laws
Equity and Trusts Tax Law Rescission for Mistake Inheritance Tax Trust Law Jurisdiction of English Courts Conflict of Laws

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Bernardo Guttenberg Willem Hartogs

Claimant

Sequent (Schweiz) AG

Defendant

Jema Universal Corporation

Defendant

Levar Universal SA

Defendant

Procedural Posture

Part 8 Claim (civil) / Judgment After Hearing

Legal Issues

  1. 1 Whether voluntary transfers into trusts can be set aside for operative mistake as to tax consequences
  2. 2 Whether the claimant's mistake was sufficiently grave to warrant equitable relief under Pitt v Holt principles

Ratio Decidendi

The claimant made voluntary transfers into trusts under an operative mistake as to the immediate inheritance tax consequences, based on incorrect professional advice. The mistake was sufficiently grave and causative, making it unconscionable to leave the transactions uncorrected. The court's equitable jurisdiction to set aside the transactions for mistake is engaged and should be exercised.

Court Disposition

Claim allowed; transactions set aside

Orders

  • Declaration that the Milky Way and Mercurius transfers were executed as a result of mistake
  • Order that both transfers be set aside and assets and/or their traceable proceeds be transferred to the claimant