Representation of Jasmine Trustees Limited [2015] JRC 196 (23 September 2015)

Representation of Jasmine Trustees Limited [2015] JRC 196 (23 September 2015)

The appointment of Kairos Trustees (NZ) Limited as trustee of both the P Trust and the R Trust was invalid because the appointor (the father) failed to take into account material matters regarding Kairos' expertise, experience, and financial standing, took irrelevant matters into account, and reached a decision no reasonable appointor could have made. Consequently, the removal of the existing trustees (Jasmine and Lutea) was also invalid, and they remain as trustees. The appointments of the elder son and the younger son as protectors were formally valid; the Court's reasoning on their substantive validity and any removal is not included in the provided text.

Citation
[2015] JRC 196
Parties
Applicant/former Trustee (p Trust): Jasmine Trustees Limited; Applicant/former Trustee (r Trust): Lutea Trustees Limited; Purported Trustee (p Trust and R Trust): Kairos Trustees (NZ) Limited; First Respondent/protector (former): Z (the father); Beneficiary/objector: Second Respondent (the daughter); Beneficiary/protector (appointed): Third Respondent (the elder son); Beneficiary/protector (appointed): Sixth Respondent (the younger son); Beneficiary (grandchild): Fourth Respondent; Beneficiary (grandchild): Fifth Respondent; Beneficiary (grandchild): Seventh Respondent; Beneficiary (grandchild): Eighth Respondent; Settlor (r Trust): Tenth Respondent; Additional Beneficiary (r Trust): Eleventh Respondent
Jurisdiction
Jersey
Judgment Date
23 September 2015
Procedural Posture
Trust/equity / Final Judgment on Validity of Trustee and Protector Appointments
Outcome
Appointment of Kairos as trustee declared invalid; Jasmine remains trustee of the P Trust, Jasmine and Lutea remain trustees of the R Trust; appointments of the elder son and the younger son as protectors formally valid; further orders on removal of protectors not included in the provided text.
Legal Topics
Appointment and Removal of Trustees, Appointment and Removal of Protectors, Fiduciary Duties, Validity of Trustee Appointments, Court's Supervisory Jurisdiction Over Trusts
Trusts Equity Private International Law Appointment and Removal of Trustees Appointment and Removal of Protectors Fiduciary Duties Validity of Trustee Appointments Court's Supervisory Jurisdiction Over Trusts

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Parties

Jasmine Trustees Limited

Applicant/former Trustee (p Trust)

Lutea Trustees Limited

Applicant/former Trustee (r Trust)

Kairos Trustees (NZ) Limited

Purported Trustee (p Trust and R Trust)

Z (the father)

First Respondent/protector (former)

Second Respondent (the daughter)

Beneficiary/objector

Third Respondent (the elder son)

Beneficiary/protector (appointed)

Sixth Respondent (the younger son)

Beneficiary/protector (appointed)

Fourth Respondent

Beneficiary (grandchild)

Fifth Respondent

Beneficiary (grandchild)

Seventh Respondent

Beneficiary (grandchild)

Eighth Respondent

Beneficiary (grandchild)

Tenth Respondent

Settlor (r Trust)

Eleventh Respondent

Additional Beneficiary (r Trust)

Procedural Posture

Trust/equity / Final Judgment on Validity of Trustee and Protector Appointments

Legal Issues

  1. 1 Whether the appointments of Kairos Trustees (NZ) Limited as trustee of the P Trust and R Trust were valid
  2. 2 Whether the appointments of the elder son and the younger son as protectors of the P Trust and R Trust were valid
  3. 3 If valid, whether the new protectors should be removed by the Court

Ratio Decidendi

The appointment of Kairos Trustees (NZ) Limited as trustee of both the P Trust and the R Trust was invalid because the appointor (the father) failed to take into account material matters regarding Kairos' expertise, experience, and financial standing, took irrelevant matters into account, and reached a decision no reasonable appointor could have made. Consequently, the removal of the existing trustees (Jasmine and Lutea) was also invalid, and they remain as trustees. The appointments of the elder son and the younger son as protectors were formally valid; the Court's reasoning on their substantive validity and any removal is not included in the provided text.

Court Disposition

Appointment of Kairos as trustee declared invalid; Jasmine remains trustee of the P Trust, Jasmine and Lutea remain trustees of the R Trust; appointments of the elder son and the younger son as protectors formally valid; further orders on removal of protectors not included in the provided text.

Orders

  • Declaration that the appointment of Kairos Trustees (NZ) Limited as trustee of the P Trust and R Trust is invalid.
  • Declaration that Jasmine Trustees Limited remains trustee of the P Trust.