Representation of K Trustees Limited re G Trust [2024] JRC 187 (15 September 2024)

Representation of K Trustees Limited re G Trust [2024] JRC 187 (15 September 2024)

The Court held that the Trustees should defend the proceedings and be indemnified from the Trust fund for their costs up to the close of discovery and exchange of witness statements. The Court found the Trustees acted in good faith, reasonably, and without conflict. The Court authorised payment of the contingent beneficiaries' costs for settlement discussions up to 30 June 2023, and continued payment of B's costs from the Trust. The Court declined to make a prospective costs order for the trial, leaving that to the trial judge.

Citation
[2024] JRC 187
Parties
Representor/trustee: K Limited; First Respondent/beneficiary: B; Second Respondent/contingent Beneficiary: C; Third Respondent/contingent Beneficiary: D; Fourth Respondent/contingent Beneficiary: E
Jurisdiction
Jersey
Judgment Date
15 September 2024
Procedural Posture
Representation for Directions and Beddoe Relief / Post Hearing, Reasons for Decision
Outcome
Orders granted in part; directions and Beddoe relief granted as specified.
Legal Topics
Beddoe Relief, Trustee Directions, Trustee Costs, Beneficiary Claims, Funding Litigation From Trust Assets
Trusts and Estates Private International Law Beddoe Relief Trustee Directions Trustee Costs Beneficiary Claims Funding Litigation From Trust Assets

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 5
Sign in to unlock

Parties

K Limited

Representor/trustee

B

First Respondent/beneficiary

C

Second Respondent/contingent Beneficiary

D

Third Respondent/contingent Beneficiary

E

Fourth Respondent/contingent Beneficiary

Procedural Posture

Representation for Directions and Beddoe Relief / Post Hearing, Reasons for Decision

Legal Issues

  1. 1 Whether the Trustees or Contingent Beneficiaries should defend hostile proceedings against the Trust
  2. 2 Whether the costs of defending and pursuing the proceedings should be funded from the Trust assets
  3. 3 Whether contingent beneficiaries can be funded from the Trust for litigation

Ratio Decidendi

The Court held that the Trustees should defend the proceedings and be indemnified from the Trust fund for their costs up to the close of discovery and exchange of witness statements. The Court found the Trustees acted in good faith, reasonably, and without conflict. The Court authorised payment of the contingent beneficiaries' costs for settlement discussions up to 30 June 2023, and continued payment of B's costs from the Trust. The Court declined to make a prospective costs order for the trial, leaving that to the trial judge.

Court Disposition

Orders granted in part; directions and Beddoe relief granted as specified.

Orders

  • Trustees to defend the proceedings and be indemnified from the Trust fund for their costs up to close of discovery and exchange of witness statements.
  • Trustees to take the lead in settlement discussions.