In re Z III Trust [2015] 2 JLR 175 (20 October 2015)

In re Z III Trust [2015] 2 JLR 175 (20 October 2015)

If a professional trustee has no unmanageable conflict of interest, it is ordinarily more cost effective and in the interests of creditors for the trustee to conduct the winding up under the supervision of the court, rather than appointing an insolvency practitioner.

Citation
[2015] 2 JLR 175
Parties
Trust: Z III Trust
Jurisdiction
Jersey
Judgment Date
20 October 2015
Procedural Posture
Trust Administration / Application for Court Supervision of Insolvent Trust
Outcome
Court to supervise administration of insolvent trust; appointment of insolvency practitioner only if appropriate.
Legal Topics
Supervision of Insolvent Trusts, Appointment of Insolvency Practitioner, Trustee Conflict of Interest
Trusts Insolvency Supervision of Insolvent Trusts Appointment of Insolvency Practitioner Trustee Conflict of Interest

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Parties

Z III Trust

Trust

Procedural Posture

Trust Administration / Application for Court Supervision of Insolvent Trust

Legal Issues

  1. 1 Whether the court should supervise the administration of an insolvent trust in the interests of creditors
  2. 2 Whether the court should appoint an insolvency practitioner under Trusts (Jersey) Law 1984, art. 51
  3. 3 Whether a professional trustee with no unmanageable conflict should conduct the winding up

Ratio Decidendi

If a professional trustee has no unmanageable conflict of interest, it is ordinarily more cost effective and in the interests of creditors for the trustee to conduct the winding up under the supervision of the court, rather than appointing an insolvency practitioner.

Court Disposition

Court to supervise administration of insolvent trust; appointment of insolvency practitioner only if appropriate.

Orders

  • Trustee to conduct winding up under court supervision unless unmanageable conflict exists.