Trilogy Management Limited v White Willow (Trustees) Limited and Ors 13-May-21 [2021] JRC 136 (13 May 2021)

Trilogy Management Limited v White Willow (Trustees) Limited and Ors 13-May-21 [2021] JRC 136 (13 May 2021)

The entitlement of each sub-trust to the 2013 distribution crystallised as at 18 September 2015, when the court ordered payment of assets to the value of US$33,468,111 to each sub-trust, consisting of 281,707 HSBC shares (valued at that date) and the balance in cash. The trustee was not entitled to make additional cash payments to the RBC sub-trusts to compensate for the subsequent fall in share value. The RBC sub-trusts must repay the excess received, and Trilogy must also repay any overpayments. On fees, the court held that responsibility fees for the companies were not prohibited by the Act or judgment and were a matter for the trustee and company boards, subject to reasonableness and...

Citation
[2021] JRC 136
Parties
Representor: Trilogy Management Limited; First Respondent: White Willow Trustees Limited; Trustee of RBC Sub Trusts: RBC Trustees (C.I.) Limited; Former Trustee: YT Charitable Foundation (International) Limited
Jurisdiction
Jersey
Judgment Date
13 May 2021
Procedural Posture
Representation (trusts) / Post Judgment Application Regarding Trust Administration
Outcome
Partly in favour of Trilogy; trustee's additional cash payments to RBC sub-trusts disallowed; responsibility fees for companies not prohibited but subject to reasonableness.
Legal Topics
Charitable Trusts, Trustee Remuneration, Distribution of Trust Assets, Valuation of in Specie Distributions, Equitable Treatment of Beneficiaries
Trusts and Estates Charity Law Charitable Trusts Trustee Remuneration Distribution of Trust Assets Valuation of in Specie Distributions Equitable Treatment of Beneficiaries

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Parties

Trilogy Management Limited

Representor

White Willow Trustees Limited

First Respondent

RBC Trustees (C.I.) Limited

Trustee of RBC Sub Trusts

YT Charitable Foundation (International) Limited

Former Trustee

Procedural Posture

Representation (trusts) / Post Judgment Application Regarding Trust Administration

Legal Issues

  1. 1 How should HSBC shares distributed in specie to sub-trusts be valued for the purposes of trust distributions?
  2. 2 Are the fees charged by the trustee (White Willow/Stonehage) permissible and reasonable under the trust deed and relevant court orders?

Ratio Decidendi

The entitlement of each sub-trust to the 2013 distribution crystallised as at 18 September 2015, when the court ordered payment of assets to the value of US$33,468,111 to each sub-trust, consisting of 281,707 HSBC shares (valued at that date) and the balance in cash. The trustee was not entitled to make additional cash payments to the RBC sub-trusts to compensate for the subsequent fall in share value. The RBC sub-trusts must repay the excess received, and Trilogy must also repay any overpayments. On fees, the court held that responsibility fees for the companies were not prohibited by the Act or judgment and were a matter for the trustee and company boards, subject to reasonableness and...

Court Disposition

Partly in favour of Trilogy; trustee's additional cash payments to RBC sub-trusts disallowed; responsibility fees for companies not prohibited but subject to reasonableness.

Orders

  • RBC sub-trusts must repay the aggregate sum of US$2,191,142.71 to JY.
  • Trilogy must repay overpaid sums to JY.