In the matter of Y Trust [2011] JRC 155A (04 August 2011)

In the matter of Y Trust [2011] JRC 155A (04 August 2011)

N acted unreasonably in failing to consult A and his advisers, contributing to A's disaffection and increased costs. N is deprived of half its costs. Costs should be paid out of A's share, insulating US Trust share. B not compensated for time but reimbursed for reasonable expenses.

Citation
[2011] JRC 155A
Parties
Trustee/applicant: N; Beneficiary/respondent: A; Beneficiary/respondent: B; Beneficiary/respondent: C; Beneficiary/us Trust Beneficiary: D; Beneficiary/us Trust Beneficiary: E; Beneficiary/us Trust Beneficiary: F; Fifth Respondent/legal Advisor: Collas Crill; Legal Advisor for a: Appleby; Legal Advisor for N: Carey Olsen
Jurisdiction
Jersey
Judgment Date
04 August 2011
Procedural Posture
Administrative Application for Costs in Trust Proceedings / Post Sanction Costs Determination
Outcome
Costs orders made; N deprived of half its costs; costs paid out of A's share; US Trust share insulated; B reimbursed for expenses only.
Legal Topics
Trustee Indemnity, Beneficiary Costs Risk, Administrative Applications, Rectification, Costs Apportionment
Trusts Equity Costs Trustee Indemnity Beneficiary Costs Risk Administrative Applications Rectification Costs Apportionment

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Parties

N

Trustee/applicant

A

Beneficiary/respondent

B

Beneficiary/respondent

C

Beneficiary/respondent

D

Beneficiary/us Trust Beneficiary

E

Beneficiary/us Trust Beneficiary

F

Beneficiary/us Trust Beneficiary

Collas Crill

Fifth Respondent/legal Advisor

Appleby

Legal Advisor for a

Carey Olsen

Legal Advisor for N

Procedural Posture

Administrative Application for Costs in Trust Proceedings / Post Sanction Costs Determination

Legal Issues

  1. 1 Whether trustee N should be deprived of costs for unreasonable conduct
  2. 2 How costs should be apportioned between trust shares
  3. 3 Whether beneficiaries should bear costs

Ratio Decidendi

N acted unreasonably in failing to consult A and his advisers, contributing to A's disaffection and increased costs. N is deprived of half its costs. Costs should be paid out of A's share, insulating US Trust share. B not compensated for time but reimbursed for reasonable expenses.

Court Disposition

Costs orders made; N deprived of half its costs; costs paid out of A's share; US Trust share insulated; B reimbursed for expenses only.

Orders

  • Costs of rectification application: N paid on trustee basis, First and Fifth Respondents on indemnity basis out of gross trust fund.
  • Balance of costs: Fifth Respondent's costs paid on indemnity basis out of A's share (excluding US Trust advice); N entitled to half its costs on trustee basis out of A's share; A entitled to costs on indemnity basis out of A's share; N to reimburse B for reasonable expenses (international calls) out of A's share.