In the matter of E [2012] JRC 141 (24 July 2012)

In the matter of E [2012] JRC 141 (24 July 2012)

The court accepted the surrender of discretion by the trustee due to conflict of interest and sanctioned the settlement agreement as reasonable, protecting the interests of minor and unborn beneficiaries and ensuring all claims were compromised, including an undertaking not to pursue claims against the first respondent.

Citation
[2012] JRC 141
Parties
Trustee of the M Trust and Representative of Minor, Unborn, and Unascertained Beneficiaries: First Respondent; Former Trustee and Defendant to Breach of Trust Proceedings: Representor; Child of the First Respondent: Second Respondent; Child of the First Respondent: Third Respondent; Child of the First Respondent: Fourth Respondent; Company Wholly Owned by the Representor as Trustee: C Limited; Corporate Director of C Limited, Owned by the First Respondent: D Limited
Jurisdiction
Jersey
Judgment Date
24 July 2012
Procedural Posture
Trust Application for Court Sanction of Settlement Agreement / Sanction Application Following Settlement of Breach of Trust Proceedings
Outcome
Settlement agreement sanctioned by the court on behalf of minor and unborn beneficiaries.
Legal Topics
Court Sanction of Settlement, Breach of Trust, Compromise of Claims, Beneficiary Protection, Conflict of Interest
Trusts Equity Civil Procedure Court Sanction of Settlement Breach of Trust Compromise of Claims Beneficiary Protection Conflict of Interest

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Parties

First Respondent

Trustee of the M Trust and Representative of Minor, Unborn, and Unascertained Beneficiaries

Representor

Former Trustee and Defendant to Breach of Trust Proceedings

Second Respondent

Child of the First Respondent

Third Respondent

Child of the First Respondent

Fourth Respondent

Child of the First Respondent

C Limited

Company Wholly Owned by the Representor as Trustee

D Limited

Corporate Director of C Limited, Owned by the First Respondent

Procedural Posture

Trust Application for Court Sanction of Settlement Agreement / Sanction Application Following Settlement of Breach of Trust Proceedings

Legal Issues

  1. 1 Should the court accept the surrender of discretion by the trustee and sanction the settlement agreement?
  2. 2 Is the settlement agreement reasonable and in the interests of minor and unborn beneficiaries?
  3. 3 Does the settlement agreement adequately compromise all claims and protect all parties, including the first respondent from future claims?

Ratio Decidendi

The court accepted the surrender of discretion by the trustee due to conflict of interest and sanctioned the settlement agreement as reasonable, protecting the interests of minor and unborn beneficiaries and ensuring all claims were compromised, including an undertaking not to pursue claims against the first respondent.

Court Disposition

Settlement agreement sanctioned by the court on behalf of minor and unborn beneficiaries.

Orders

  • Court accepts surrender of trustee discretion.
  • Settlement agreement approved and binds all beneficiaries.