Representation of the Velloz Settlement 26-May-2021 [2021] JRC 140 (26 May 2021)

Representation of the Velloz Settlement 26-May-2021 [2021] JRC 140 (26 May 2021)

The Court has jurisdiction under Article 51 of the Trust (Jersey) Law 1984 to order a trustee to execute an agreed Instrument of Retirement and Indemnity where the terms are settled and reasonable security is provided. A trustee cannot delay retirement due to a fee dispute, and the Court may remove a trustee if necessary to protect the interests of the beneficiaries. VT had reasonable security via its equitable lien, contractual indemnity, and a ringfenced fund, justifying its retirement or removal.

Citation
[2021] JRC 140
Parties
Trustee: Velloz (Jersey) Limited; Co Trustee: ST PTC Limited; Settlor/beneficiary/protector: Settlor; Beneficiary: Settlor's wife; Beneficiary/director of VT: S (eldest son); Beneficiaries/directors of ST: Two middle sons; Beneficiary: Youngest son; Beneficiary: Daughter (child of S); Partie Publique (default Beneficiary): Attorney General; Representative for Minor and Unborn Beneficiaries: Advocate Gardner
Jurisdiction
Jersey
Judgment Date
26 May 2021
Procedural Posture
Trust Dispute (representation) / Post Hearing Directions and Reasons
Outcome
Directions granted; VT ordered to execute Instrument of Retirement and Indemnity or be removed as trustee; fee dispute to be resolved separately.
Legal Topics
Trustee Retirement, Trustee Removal, Trustee Fees, Court's Supervisory Jurisdiction, Reasonable Security for Outgoing Trustee, Indemnity Provisions
Trusts Equity Private International Law Trustee Retirement Trustee Removal Trustee Fees Court's Supervisory Jurisdiction Reasonable Security for Outgoing Trustee +1 more

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Parties

Velloz (Jersey) Limited

Trustee

ST PTC Limited

Co Trustee

Settlor

Settlor/beneficiary/protector

Settlor's wife

Beneficiary

S (eldest son)

Beneficiary/director of VT

Two middle sons

Beneficiaries/directors of ST

Youngest son

Beneficiary

Daughter (child of S)

Beneficiary

Attorney General

Partie Publique (default Beneficiary)

Advocate Gardner

Representative for Minor and Unborn Beneficiaries

Procedural Posture

Trust Dispute (representation) / Post Hearing Directions and Reasons

Legal Issues

  1. 1 Whether the Court can order a trustee to execute an agreed Instrument of Retirement and Indemnity
  2. 2 Whether the Court can remove a trustee who is willing to retire but delays over fees/security
  3. 3 What constitutes reasonable security for an outgoing trustee's fees and liabilities

Ratio Decidendi

The Court has jurisdiction under Article 51 of the Trust (Jersey) Law 1984 to order a trustee to execute an agreed Instrument of Retirement and Indemnity where the terms are settled and reasonable security is provided. A trustee cannot delay retirement due to a fee dispute, and the Court may remove a trustee if necessary to protect the interests of the beneficiaries. VT had reasonable security via its equitable lien, contractual indemnity, and a ringfenced fund, justifying its retirement or removal.

Court Disposition

Directions granted; VT ordered to execute Instrument of Retirement and Indemnity or be removed as trustee; fee dispute to be resolved separately.

Orders

  • VT and ST to execute the Instrument of Retirement and Indemnity within 14 days, conditional on adult beneficiaries executing the Instrument of Release and Indemnity.
  • If VT fails to execute, VT to be removed as trustee within 21 days and surrender all Trust property to ST.