Representation of Rawlinson & Hunter SA re Z Trusts [2018] JRC 164 (10 September 2018)

Representation of Rawlinson & Hunter SA re Z Trusts [2018] JRC 164 (10 September 2018)

In the case of an insolvent trust, the former trustee does not have priority over other creditors for costs incurred in proving its claim; each creditor must bear its own costs of proof, subject to court discretion.

Citation
[2018] JRC 164
Parties
Former Trustee/applicant: Equity Trust; Respondents: Other creditors of Z III Trust
Jurisdiction
Jersey
Judgment Date
10 September 2018
Procedural Posture
Trust Insolvency Application / Post Substantive Judgment, Determination of Costs Claim
Outcome
Application dismissed
Legal Topics
Equitable Lien, Trustee Indemnity, Costs of Proving Claims, Pari Passu Regime
Trust Law Insolvency Law Equitable Lien Trustee Indemnity Costs of Proving Claims Pari Passu Regime

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Parties

Equity Trust

Former Trustee/applicant

Other creditors of Z III Trust

Respondents

Procedural Posture

Trust Insolvency Application / Post Substantive Judgment, Determination of Costs Claim

Legal Issues

  1. 1 Whether a former trustee can claim costs incurred in proving its claim against the assets of an insolvent trust

Ratio Decidendi

In the case of an insolvent trust, the former trustee does not have priority over other creditors for costs incurred in proving its claim; each creditor must bear its own costs of proof, subject to court discretion.

Court Disposition

Application dismissed

Orders

  • Equity Trust cannot claim for its costs in proving its claim against the assets of the Z III Trust