Representation of DSL (R) Limited [2007] JRC 251 (20 December 2007)

Representation of DSL (R) Limited [2007] JRC 251 (20 December 2007)

The Representor, through its directors, was under a mistake of fact as to the effect of the trust and assignments, believing they could receive interest-free loans, which was not possible under the trust terms. This mistake falls within the equitable jurisdiction to set aside the trust and assignments for mistake, and it would be unjust not to do so.

Citation
[2007] JRC 251
Parties
Representor: [Anonymous] Limited Liability Company; Trustee: A Trust Company (Jersey) Limited; Principal Shareholders/directors of Representor: Mr and Mrs L; Former Employee/beneficiary Representative: Mr Coleman
Jurisdiction
Jersey
Judgment Date
20 December 2007
Procedural Posture
Application to Set Aside Trust and Deeds of Assignment / Judgment
Outcome
Trust and deeds of assignment set aside on the ground of mistake.
Legal Topics
Mistake in Trusts, Setting Aside Voluntary Dispositions, Equitable Jurisdiction
Trust Law Equity Mistake in Trusts Setting Aside Voluntary Dispositions Equitable Jurisdiction

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Parties

[Anonymous] Limited Liability Company

Representor

A Trust Company (Jersey) Limited

Trustee

Mr and Mrs L

Principal Shareholders/directors of Representor

Mr Coleman

Former Employee/beneficiary Representative

Procedural Posture

Application to Set Aside Trust and Deeds of Assignment / Judgment

Legal Issues

  1. 1 Whether the trust and deeds of assignment should be set aside on the ground of mistake under English law

Ratio Decidendi

The Representor, through its directors, was under a mistake of fact as to the effect of the trust and assignments, believing they could receive interest-free loans, which was not possible under the trust terms. This mistake falls within the equitable jurisdiction to set aside the trust and assignments for mistake, and it would be unjust not to do so.

Court Disposition

Trust and deeds of assignment set aside on the ground of mistake.

Orders

  • The trust and the deeds of assignment are set aside as invalid on the ground of mistake.