Representation of HSBC Trustee (CI) Limited Re: The Carrot and Dandelion Trusts [2022] JRC 154 (08 July 2022)

Representation of HSBC Trustee (CI) Limited Re: The Carrot and Dandelion Trusts [2022] JRC 154 (08 July 2022)

The trustee's decision to participate in the New York and Jersey proceedings, maintaining a neutral stance and incurring costs up to specified limits, is a momentous decision within the trustee's powers and is reasonable, proportionate, and in the interests of the beneficiaries. The court approves the trustee's proposed conduct and indemnity for costs, subject to cost caps and the right of the Bank to be heard.

Citation
[2022] JRC 154
Parties
Applicant/trustee: HSBC Trustee (CI) Limited; Respondent/claimant: Emirates NBD Bank; Settlor/defendant: D (the Settlor); Beneficiaries/interested Parties: Children of the Settlor
Jurisdiction
Jersey
Judgment Date
08 July 2022
Procedural Posture
Representation/beddoe Application / Directions Hearing and Approval of Trustee's Proposed Conduct
Outcome
Application granted; trustee's proposed conduct approved with cost caps and directions.
Legal Topics
Beddoe Application, Trustee Powers, Costs Indemnity, Foreign Proceedings, Freezing Order
Trusts and Estates Civil Procedure Beddoe Application Trustee Powers Costs Indemnity Foreign Proceedings Freezing Order

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 9 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

HSBC Trustee (CI) Limited

Applicant/trustee

Emirates NBD Bank

Respondent/claimant

D (the Settlor)

Settlor/defendant

Children of the Settlor

Beneficiaries/interested Parties

Procedural Posture

Representation/beddoe Application / Directions Hearing and Approval of Trustee's Proposed Conduct

Legal Issues

  1. 1 Whether the trustee should be permitted to defend or participate in foreign and Jersey proceedings at the expense of the trusts
  2. 2 Whether the trustee's proposed neutral stance is appropriate
  3. 3 Whether the trustee is entitled to indemnity for costs from trust assets

Ratio Decidendi

The trustee's decision to participate in the New York and Jersey proceedings, maintaining a neutral stance and incurring costs up to specified limits, is a momentous decision within the trustee's powers and is reasonable, proportionate, and in the interests of the beneficiaries. The court approves the trustee's proposed conduct and indemnity for costs, subject to cost caps and the right of the Bank to be heard.

Court Disposition

Application granted; trustee's proposed conduct approved with cost caps and directions.

Orders

  • Trustee to maintain a neutral stance and non-admission of the Bank's claims in Jersey and New York proceedings.
  • Trustee to participate in proceedings only to the reasonable minimum extent necessary to put the Bank to proof, including compliance with discovery and witness obligations.