Dunham & La Ville Trustee v Toland Trust and O [2005] JRC 142 (13 October 2005)

Dunham & La Ville Trustee v Toland Trust and O [2005] JRC 142 (13 October 2005)

The appointments to the Pennywise Trust and Sequential Trust were ultra vires as their trust periods exceeded those of the appointing trusts, contrary to the express limitations in the trust instruments. Distributions made under the mistaken belief of validity are ratified, and exclusionary provisions are set aside as they were integral to the invalid scheme.

Citation
[2005] JRC 142
Parties
Applicant/trustee: Peter Stanley Dunham; Applicant/trustee: La Ville Trustees Limited; Representative for Minor, Unborn and Unascertained Beneficiaries: Advocate Simon Young; Adult Beneficiary/objector: Paul McLean
Jurisdiction
Jersey
Judgment Date
13 October 2005
Procedural Posture
Trust Application / Application for Declarations and Ratification of Distributions
Outcome
Declarations granted; distributions ratified; costs ordered against Trustees.
Legal Topics
Ultra Vires Appointments, Ratification of Distributions, Trust Period Limitations, Exclusion of Beneficiaries
Trusts Equity Ultra Vires Appointments Ratification of Distributions Trust Period Limitations Exclusion of Beneficiaries

Case Brief

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Parties

Peter Stanley Dunham

Applicant/trustee

La Ville Trustees Limited

Applicant/trustee

Advocate Simon Young

Representative for Minor, Unborn and Unascertained Beneficiaries

Paul McLean

Adult Beneficiary/objector

Procedural Posture

Trust Application / Application for Declarations and Ratification of Distributions

Legal Issues

  1. 1 Whether appointments to Pennywise Trust and Sequential Trust were ultra vires
  2. 2 Whether distributions made under mistaken appointments should be ratified
  3. 3 Whether exclusion of certain beneficiaries should be set aside

Ratio Decidendi

The appointments to the Pennywise Trust and Sequential Trust were ultra vires as their trust periods exceeded those of the appointing trusts, contrary to the express limitations in the trust instruments. Distributions made under the mistaken belief of validity are ratified, and exclusionary provisions are set aside as they were integral to the invalid scheme.

Court Disposition

Declarations granted; distributions ratified; costs ordered against Trustees.

Orders

  • Declaration that appointments to Pennywise Trust and Sequential Trust were ultra vires and invalid.
  • Ratification of distributions made from Pennywise and Sequential Trusts to excluded persons.