Representation of Sequent (Guernsey) Limited re: the Trafalgar Trust [2021] JRC 327 (24 December 2021)

Representation of Sequent (Guernsey) Limited re: the Trafalgar Trust [2021] JRC 327 (24 December 2021)

Clause 2 of the Trust was sufficiently broad to permit resettlement; the 1986 Appointment created a new, but valid, settlement and was intra vires; the Settlor is barred by acquiescence and laches from challenging the 1986 Appointment, but B is not; the Trustee should retire and Accuro Trust (Jersey) Limited should be appointed as new trustee.

Citation
[2021] JRC 327
Parties
Settlor: [Redacted] (Z); Principal Beneficiary: B; Principal Beneficiary: E; Principal Beneficiary: F; Original Trustee: Cantrade Trust Company Limited; Trustee: Rothschild Trust Jersey Limited; Additional Trustee: Rothschild Trust Guernsey Limited; Additional Trustee: Mr C; Additional Trustee: Mr D; Appointed Trustee: Accuro Trust (Jersey) Limited
Jurisdiction
Jersey
Judgment Date
24 December 2021
Procedural Posture
Trust Dispute / Judgment After Multi Day Hearing
Outcome
The 1986 Appointment is valid; the Settlor is barred by acquiescence and laches; B's challenge fails on the merits; the Trustee is to retire and Accuro Trust (Jersey) Limited is appointed as new trustee.
Legal Topics
Validity of Trust Appointments, Resettlement of Trust Assets, Trustee Retirement and Appointment, Acquiescence, Laches
Trusts and Estates Equity Validity of Trust Appointments Resettlement of Trust Assets Trustee Retirement and Appointment Acquiescence Laches

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Parties

[Redacted] (Z)

Settlor

B

Principal Beneficiary

E

Principal Beneficiary

F

Principal Beneficiary

Cantrade Trust Company Limited

Original Trustee

Rothschild Trust Jersey Limited

Trustee

Rothschild Trust Guernsey Limited

Additional Trustee

Mr C

Additional Trustee

Mr D

Additional Trustee

Accuro Trust (Jersey) Limited

Appointed Trustee

Procedural Posture

Trust Dispute / Judgment After Multi Day Hearing

Legal Issues

  1. 1 Whether the 1986 Appointment was ultra vires and void as a resettlement outside the power of appointment
  2. 2 Whether the Settlor and B are barred by acquiescence or laches from challenging the 1986 Appointment
  3. 3 Whether the Trustee should be removed or required to retire and a new trustee appointed

Ratio Decidendi

Clause 2 of the Trust was sufficiently broad to permit resettlement; the 1986 Appointment created a new, but valid, settlement and was intra vires; the Settlor is barred by acquiescence and laches from challenging the 1986 Appointment, but B is not; the Trustee should retire and Accuro Trust (Jersey) Limited should be appointed as new trustee.

Court Disposition

The 1986 Appointment is valid; the Settlor is barred by acquiescence and laches; B's challenge fails on the merits; the Trustee is to retire and Accuro Trust (Jersey) Limited is appointed as new trustee.

Orders

  • The Trustee shall appoint Accuro Trust (Jersey) Limited as Appointed Trustee of the Settled Fund and retire as trustee of the Settled Fund.
  • Mr C and Mr D are removed as trustees of the Trust (assets $100).