Erinvale PTC Limited v B and Ors [2021] JRC 241 (28 August 2021)

Erinvale PTC Limited v B and Ors [2021] JRC 241 (28 August 2021)

The Court found that, despite past errors, Erinvale's removal as trustee or the resignation of its directors was not justified. The welfare of the beneficiaries as a whole, the practical difficulties and costs of appointing a new trustee, the lack of evidence of ongoing improper conduct or animus, and the support of all beneficiaries except D for the status quo outweighed D's criticisms. The Court directed Erinvale to remain as trustee and its directors to remain in office, pending the conclusion of the matrimonial proceedings.

Citation
[2021] JRC 241
Parties
Representor/trustee: Erinvale PTC Limited; Second Respondent/beneficiary: D; First Respondent/settlor/beneficiary: B; Intervenors/beneficiaries: E and F
Jurisdiction
Jersey
Judgment Date
28 August 2021
Procedural Posture
Trustee Directions/removal Application / Post Hearing Judgment on Trustee's Application for Directions
Outcome
Application for removal of trustee and resignation of directors refused; directions given for Erinvale and its directors to remain in office.
Legal Topics
Removal of Trustee, Private Trust Company, Trustee Impartiality, Conflict of Interest, Court's Supervisory Jurisdiction Over Trusts, Ancillary Relief in Divorce
Trusts and Estates Family Law Removal of Trustee Private Trust Company Trustee Impartiality Conflict of Interest Court's Supervisory Jurisdiction Over Trusts Ancillary Relief in Divorce

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Parties

Erinvale PTC Limited

Representor/trustee

D

Second Respondent/beneficiary

B

First Respondent/settlor/beneficiary

E and F

Intervenors/beneficiaries

Procedural Posture

Trustee Directions/removal Application / Post Hearing Judgment on Trustee's Application for Directions

Legal Issues

  1. 1 Whether Erinvale should be removed as trustee of the A Settlement
  2. 2 Whether the directors of Erinvale should resign
  3. 3 Whether the current trustee/directors' continuation is detrimental to the beneficiaries' interests

Ratio Decidendi

The Court found that, despite past errors, Erinvale's removal as trustee or the resignation of its directors was not justified. The welfare of the beneficiaries as a whole, the practical difficulties and costs of appointing a new trustee, the lack of evidence of ongoing improper conduct or animus, and the support of all beneficiaries except D for the status quo outweighed D's criticisms. The Court directed Erinvale to remain as trustee and its directors to remain in office, pending the conclusion of the matrimonial proceedings.

Court Disposition

Application for removal of trustee and resignation of directors refused; directions given for Erinvale and its directors to remain in office.

Orders

  • Erinvale is directed to remain as trustee of the A Settlement.
  • The current directors of Erinvale are to remain in office.