Representation of Centre [2009] JRC 109 (02 June 2009)

Representation of Centre [2009] JRC 109 (02 June 2009)

Mr Pabst was under a clear duty to resign as Protector and Appointor once a conflict of interest arose due to his personal claims against the trust. His failure to do so, and continued participation in proceedings, constituted unreasonable conduct and a flagrant breach of duty, justifying an order that he personally pay the costs of the co-trustees and beneficiaries on an indemnity basis, except for costs relating to two specific hearings for which he was not responsible. The claim for costs relating to the appointment of Langtry as co-trustee is substantive and adjourned for further determination.

Citation
[2009] JRC 109
Parties
Applicant/co Trustee: Centre Trustees Limited; Applicant/co Trustee: Langtry Trust Company (Channel Islands) Limited; First Respondent/protector and Appointor: Wilfried Pabst; Second Respondent/beneficiary: Nikki van Rooyen; Second Respondent/beneficiary: Jacques van Rooyen
Jurisdiction
Jersey
Judgment Date
02 June 2009
Procedural Posture
Trust Law Application / Judgment on Costs Following Removal of Protector and Appointor
Outcome
Costs awarded against Mr Pabst personally on an indemnity basis, except for two hearings; claim for costs relating to Langtry's appointment adjourned.
Legal Topics
Protector's Duties, Conflict of Interest, Removal of Fiduciaries, Costs in Trust Litigation
Trusts and Equity Private International Law Protector's Duties Conflict of Interest Removal of Fiduciaries Costs in Trust Litigation

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 4 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Centre Trustees Limited

Applicant/co Trustee

Langtry Trust Company (Channel Islands) Limited

Applicant/co Trustee

Wilfried Pabst

First Respondent/protector and Appointor

Nikki van Rooyen

Second Respondent/beneficiary

Jacques van Rooyen

Second Respondent/beneficiary

Procedural Posture

Trust Law Application / Judgment on Costs Following Removal of Protector and Appointor

Legal Issues

  1. 1 Whether Mr Pabst breached his duties as Protector and Appointor by remaining in office while in conflict of interest
  2. 2 Whether costs should be awarded against Mr Pabst personally on an indemnity basis
  3. 3 Whether costs relating to the appointment of Langtry as co-trustee should be recoverable from Mr Pabst

Ratio Decidendi

Mr Pabst was under a clear duty to resign as Protector and Appointor once a conflict of interest arose due to his personal claims against the trust. His failure to do so, and continued participation in proceedings, constituted unreasonable conduct and a flagrant breach of duty, justifying an order that he personally pay the costs of the co-trustees and beneficiaries on an indemnity basis, except for costs relating to two specific hearings for which he was not responsible. The claim for costs relating to the appointment of Langtry as co-trustee is substantive and adjourned for further determination.

Court Disposition

Costs awarded against Mr Pabst personally on an indemnity basis, except for two hearings; claim for costs relating to Langtry's appointment adjourned.

Orders

  • Mr Pabst to pay the costs of the co-trustees and the children of and incidental to the representation on an indemnity basis, excluding costs of hearings on 16 December 2008 and 12 February 2009.
  • Claim for costs relating to the appointment of Langtry as co-trustee adjourned for further determination.