A Settlement [2009] JRC 223 (25 November 2009)

A Settlement [2009] JRC 223 (25 November 2009)

The Court accepted the surrender of RBC's discretion as trustee due to genuine conflicts of interest arising from disputes among beneficiaries and allegations of improper benefit by D directors. The Court adjourned the application for three months to allow for without prejudice discussions or mediation, discharged the embargo on distributions from the D Settlement, and deferred decisions on disclosure orders, trustee fees, and payment of directors' fees pending further submissions and resolution efforts.

Citation
[2009] JRC 223
Parties
Representor/trustee: RBC; Beneficiaries/respondents: First Respondents (D family, including H, G, E, K); Beneficiaries/respondents: Third and Fourth Respondents (B and C families); Representative of Grandchildren and Remoter Issue of D: Mrs Davies
Jurisdiction
Jersey
Judgment Date
25 November 2009
Procedural Posture
Trustee Application for Directions / Interlocutory Directions Hearing
Outcome
Application adjourned for three months for without prejudice discussions/mediation; embargo on distributions from D Settlement discharged; other issues deferred.
Legal Topics
Trustee Discretion, Surrender of Discretion, Beneficiary Rights, Disclosure Orders, Trustee Fees, Conflict of Interest, Trust Administration, Tax Liabilities, Asset Protection
Trusts Equity Private International Law Trustee Discretion Surrender of Discretion Beneficiary Rights Disclosure Orders Trustee Fees +4 more

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 5 Authorities cited 4 Party arguments 2 Amounts and remedies 17
Sign in to unlock

Parties

RBC

Representor/trustee

First Respondents (D family, including H, G, E, K)

Beneficiaries/respondents

Third and Fourth Respondents (B and C families)

Beneficiaries/respondents

Mrs Davies

Representative of Grandchildren and Remoter Issue of D

Procedural Posture

Trustee Application for Directions / Interlocutory Directions Hearing

Legal Issues

  1. 1 Whether the trustee (RBC) should be permitted to surrender its discretion to the Court due to conflicts of interest.
  2. 2 Whether the Court can order disclosure of information from beneficiary directors (D directors) regarding companies owned by the trusts.
  3. 3 Whether distributions from the D Settlement should remain embargoed.

Ratio Decidendi

The Court accepted the surrender of RBC's discretion as trustee due to genuine conflicts of interest arising from disputes among beneficiaries and allegations of improper benefit by D directors. The Court adjourned the application for three months to allow for without prejudice discussions or mediation, discharged the embargo on distributions from the D Settlement, and deferred decisions on disclosure orders, trustee fees, and payment of directors' fees pending further submissions and resolution efforts.

Court Disposition

Application adjourned for three months for without prejudice discussions/mediation; embargo on distributions from D Settlement discharged; other issues deferred.

Orders

  • Application adjourned for three months to allow parties to attempt resolution via discussions or mediation.
  • Embargo on distributions from D Settlement discharged; trustee to collect further information before considering applications for distribution.