Representation of GB Trustees 22-Feb-2021 [2021] JRC 048 (22 February 2021)

Representation of GB Trustees 22-Feb-2021 [2021] JRC 048 (22 February 2021)

The trustee's decision to exclude Tanya Stock as a beneficiary was made in good faith, on legal advice, after consultation, and in the interests of preserving the trust funds for the remaining beneficiaries. Her conduct was found to be hostile and damaging, with substantial prior benefit received and ongoing risk of further depletion of trust assets. The decision was not vitiated by conflict of interest. The trustee's decision not to pursue litigation against John William Dick I and former trustees was reasonable given the lack of unanimity among beneficiaries, high costs, low prospects of recovery, and the existence of broad mutual releases.

Citation
[2021] JRC 048
Parties
Applicant/trustee: G. B. Trustees Limited; Respondent/beneficiary (excluded): Tanya Marya Dick Stock; Respondent/economic Settlor (not Beneficiary): John William Dick I; Respondent/beneficiary: John William Dick II; Respondents/beneficiaries (children of John William Dick Ii): John William Dick III and two minors
Jurisdiction
Jersey
Judgment Date
22 February 2021
Procedural Posture
Trustee Application for Blessing of Decisions / Final Judgment on Applications for Blessing
Outcome
Application granted. The Court blesses the trustee's decisions.
Legal Topics
Exclusion of Beneficiary, Trustee Powers, Costs Orders, Conflict of Interest, Trust Administration, Blessing of Trustee Decisions
Trusts and Estates Private International Law Exclusion of Beneficiary Trustee Powers Costs Orders Conflict of Interest Trust Administration Blessing of Trustee Decisions

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 10 Party arguments 2 Amounts and remedies 16
Sign in to unlock

Parties

G. B. Trustees Limited

Applicant/trustee

Tanya Marya Dick Stock

Respondent/beneficiary (excluded)

John William Dick I

Respondent/economic Settlor (not Beneficiary)

John William Dick II

Respondent/beneficiary

John William Dick III and two minors

Respondents/beneficiaries (children of John William Dick Ii)

Procedural Posture

Trustee Application for Blessing of Decisions / Final Judgment on Applications for Blessing

Legal Issues

  1. 1 Whether the trustee's decision to exclude Tanya Stock as a beneficiary should be blessed by the Court
  2. 2 Whether the trustee's decision not to pursue legal proceedings against John William Dick I and former trustees/administrators should be blessed

Ratio Decidendi

The trustee's decision to exclude Tanya Stock as a beneficiary was made in good faith, on legal advice, after consultation, and in the interests of preserving the trust funds for the remaining beneficiaries. Her conduct was found to be hostile and damaging, with substantial prior benefit received and ongoing risk of further depletion of trust assets. The decision was not vitiated by conflict of interest. The trustee's decision not to pursue litigation against John William Dick I and former trustees was reasonable given the lack of unanimity among beneficiaries, high costs, low prospects of recovery, and the existence of broad mutual releases.

Court Disposition

Application granted. The Court blesses the trustee's decisions.

Orders

  • The decision of G. B. Trustees Limited to exclude Tanya Stock as a beneficiary of the Manor House Trust and the Russian Trust by irrevocable declaration under Clause 9(a)(ii) is blessed.
  • The trustee's decision not to pursue legal proceedings against John William Dick I and the Wigleys is blessed.