A Settlement [2010] JCA 231 (22 December 2010)

A Settlement [2010] JCA 231 (22 December 2010)

The Royal Court's disclosure order exceeded the proper scope of Article 51 because the appellants owed no duty of disclosure to the trustee or beneficiaries arising directly out of the trust relationship; their duties as directors were owed to the companies, not to the trust; Article 51 cannot be used to circumvent company law limitations.

Citation
[2010] JCA 231
Parties
Representor: RBC Trust Company (Jersey) Limited; Appellants/first Respondents: E, F, G, H, I, J, K; Second Respondent: Advocate Claire Davies; Third Respondents: L, J, N, M, O; Fourth Respondents: J, P, Q
Jurisdiction
Jersey
Judgment Date
22 December 2010
Procedural Posture
Application for Leave to Appeal / Court of Appeal Judgment
Outcome
Appeal allowed; Royal Court's disclosure order set aside.
Legal Topics
Trustee Powers, Disclosure Orders, Beneficiary Rights, Article 51 Trusts (jersey) Law 1984, Corporate Structure and Trusts
Trusts Company Law Trustee Powers Disclosure Orders Beneficiary Rights Article 51 Trusts (jersey) Law 1984 Corporate Structure and Trusts

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Parties

RBC Trust Company (Jersey) Limited

Representor

E, F, G, H, I, J, K

Appellants/first Respondents

Advocate Claire Davies

Second Respondent

L, J, N, M, O

Third Respondents

J, P, Q

Fourth Respondents

Procedural Posture

Application for Leave to Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Scope of Article 51 of the Trusts (Jersey) Law 1984
  2. 2 Whether directors/beneficiaries can be compelled to disclose company documents to trustee
  3. 3 Limits of court's supervisory jurisdiction over trusts operating through companies

Ratio Decidendi

The Royal Court's disclosure order exceeded the proper scope of Article 51 because the appellants owed no duty of disclosure to the trustee or beneficiaries arising directly out of the trust relationship; their duties as directors were owed to the companies, not to the trust; Article 51 cannot be used to circumvent company law limitations.

Court Disposition

Appeal allowed; Royal Court's disclosure order set aside.

Orders

  • Royal Court's Act of Court dated 4 May 2010 requiring disclosure is set aside.
  • No order for disclosure against appellants under Article 51.