Chvetsov v BNP Paribas [2009] JLR 217 (19 June 2009)

Chvetsov v BNP Paribas [2009] JLR 217 (19 June 2009)

An agent of a trustee owes no trust or other duties to the beneficiaries, who have no cause of action against the agent unless the agent is aware that the beneficiaries have acted to their detriment on negligent advice or has assumed responsibility. If the trustee refuses to enforce a claim against a defaulting agent, beneficiaries may seek court directions for the trustee to take action or, in certain cases, bring a derivative action.

Citation
[2009] JLR 217
Parties
Beneficiary: Chvetsov; Agent of Trustee: BNP Paribas
Jurisdiction
Jersey
Judgment Date
19 June 2009
Procedural Posture
Civil / Judgment
Outcome
claim dismissed
Legal Topics
Duties of Agents, Beneficiaries' Rights, Derivative Actions
Trusts Duties of Agents Beneficiaries' Rights Derivative Actions

Case Brief

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Parties

Chvetsov

Beneficiary

BNP Paribas

Agent of Trustee

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether an agent appointed by a trustee owes duties to the beneficiaries of the trust
  2. 2 Whether beneficiaries have a cause of action against the agent of a trustee

Ratio Decidendi

An agent of a trustee owes no trust or other duties to the beneficiaries, who have no cause of action against the agent unless the agent is aware that the beneficiaries have acted to their detriment on negligent advice or has assumed responsibility. If the trustee refuses to enforce a claim against a defaulting agent, beneficiaries may seek court directions for the trustee to take action or, in certain cases, bring a derivative action.

Court Disposition

claim dismissed