In re Internine Trust v [2006] JLR 176 (25 May 2006)

In re Internine Trust v [2006] JLR 176 (25 May 2006)

Trustees are generally entitled to full indemnity for reasonable legal costs from the trust when acting neutrally in litigation, and denial of indemnity requires a specific order and a finding of unreasonableness, which is a high threshold.

Citation
[2006] JLR 176
Parties
Trustee: Internine Trust
Jurisdiction
Jersey
Judgment Date
25 May 2006
Procedural Posture
Trusts Costs Indemnity / Judgment on Trustee's Entitlement to Indemnity for Legal Costs
Outcome
Trustee entitled to full indemnity for reasonable legal costs from the trust.
Legal Topics
Trustee Indemnity, Legal Costs, Neutral Position in Litigation
Trusts Costs Trustee Indemnity Legal Costs Neutral Position in Litigation

Case Brief

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Parties

Internine Trust

Trustee

Procedural Posture

Trusts Costs Indemnity / Judgment on Trustee's Entitlement to Indemnity for Legal Costs

Legal Issues

  1. 1 Whether a trustee is entitled to full indemnity out of the trust for reasonable legal costs when taking a neutral position in litigation
  2. 2 Circumstances under which a trustee may be denied indemnity for costs

Ratio Decidendi

Trustees are generally entitled to full indemnity for reasonable legal costs from the trust when acting neutrally in litigation, and denial of indemnity requires a specific order and a finding of unreasonableness, which is a high threshold.

Court Disposition

Trustee entitled to full indemnity for reasonable legal costs from the trust.

Orders

  • Trustee to be indemnified out of the trust for reasonable legal costs.