MacKinnon v Regent Trust Co Ltd [2005] JCA 066 (19 May 2005)

MacKinnon v Regent Trust Co Ltd [2005] JCA 066 (19 May 2005)

A claim that a trust is a sham under Jersey law requires pleading and proof of a common intention by both settlor and trustee to give a false impression to third parties as to the effect of the trust documents. The plaintiff expressly disclaimed any such intention, so the pleading disclosed no reasonable cause of action and was rightly struck out.

Citation
[2005] JCA 066
Parties
Plaintiff/appellant: Andrew Kinross MacKinnon; First Defendant/respondent: The Regent Trust Company Limited; Second Defendant: Kenneth James MacKinnon; Third Defendant: Elizabeth Victoria MacKinnon (née Sharman); Fourth Defendant: Sebastian James MacKinnon; Fifth Defendant: Benjamin Thomas Skok MacKinnon; Sixth Defendant: Thomasin Anne Skok MacKinnon; Seventh Defendant: Sophie Linda Skok MacKinnon; Eighth Defendant: Alistair Kinross MacKinnon; Ninth Defendant: Ian James MacKinnon
Jurisdiction
Jersey
Judgment Date
19 May 2005
Procedural Posture
Appeal / Appeal Against Order Striking Out Parts of Pleading for Disclosing No Reasonable Cause of Action
Outcome
Appeal dismissed
Legal Topics
Sham Trusts, Pleading Standards, Rectification and Mistake, Family Settlements
Trusts and Estates Civil Procedure Sham Trusts Pleading Standards Rectification and Mistake Family Settlements

Case Brief

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Parties

Andrew Kinross MacKinnon

Plaintiff/appellant

The Regent Trust Company Limited

First Defendant/respondent

Kenneth James MacKinnon

Second Defendant

Elizabeth Victoria MacKinnon (née Sharman)

Third Defendant

Sebastian James MacKinnon

Fourth Defendant

Benjamin Thomas Skok MacKinnon

Fifth Defendant

Thomasin Anne Skok MacKinnon

Sixth Defendant

Sophie Linda Skok MacKinnon

Seventh Defendant

Alistair Kinross MacKinnon

Eighth Defendant

Ian James MacKinnon

Ninth Defendant

Procedural Posture

Appeal / Appeal Against Order Striking Out Parts of Pleading for Disclosing No Reasonable Cause of Action

Legal Issues

  1. 1 Whether the plaintiff's pleading disclosed a reasonable cause of action by alleging the family settlements were shams without pleading a common intention to mislead third parties
  2. 2 Whether Jersey law recognises a broader jurisdiction to set aside trusts absent sham, mistake, duress, undue influence, or fraud

Ratio Decidendi

A claim that a trust is a sham under Jersey law requires pleading and proof of a common intention by both settlor and trustee to give a false impression to third parties as to the effect of the trust documents. The plaintiff expressly disclaimed any such intention, so the pleading disclosed no reasonable cause of action and was rightly struck out.

Court Disposition

Appeal dismissed

Orders

  • Judgment and order of the Royal Court striking out the relevant parts of the Order of Justice upheld