In the matter of the F Trust [2017] JRC 142 (08 September 2017)

In the matter of the F Trust [2017] JRC 142 (08 September 2017)

The court sanctioned and blessed the trustees' decision to commence and continue the proceedings to recover the debt, finding that the trustees were right to seek recovery and that the case for recovery was strong. However, the court expressed concern about the lack of cost control and consultation with the Attorney General, and required the trustees to obtain budgets, negotiate rates, and consult with the Attorney General before incurring further costs. Indemnity for costs was granted in principle, subject to proper negotiation and agreement on costs.

Citation
[2017] JRC 142
Parties
Applicant: First Representor; Applicant: Second Representor; Applicant: Third Representor; Respondent: Attorney General
Jurisdiction
Jersey
Judgment Date
08 September 2017
Procedural Posture
Beddoe Application / Judgment on Application for Court Blessing of Trustees' Conduct in Litigation
Outcome
Application granted in part; trustees' decision to litigate blessed with conditions.
Legal Topics
Beddoe Application, Trustee Powers, Charitable Trusts, Costs and Indemnity, Litigation by Trustees
Trusts and Estates Charity Law Beddoe Application Trustee Powers Charitable Trusts Costs and Indemnity Litigation by Trustees

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Parties

First Representor

Applicant

Second Representor

Applicant

Third Representor

Applicant

Attorney General

Respondent

Procedural Posture

Beddoe Application / Judgment on Application for Court Blessing of Trustees' Conduct in Litigation

Legal Issues

  1. 1 Whether the court should bless and sanction the trustees' decision to commence and continue litigation to recover a debt owed to a charitable trust
  2. 2 Whether the trustees are entitled to indemnity for costs from the trust fund
  3. 3 Whether delay in making the Beddoe application or failure to consult the Attorney General affects relief

Ratio Decidendi

The court sanctioned and blessed the trustees' decision to commence and continue the proceedings to recover the debt, finding that the trustees were right to seek recovery and that the case for recovery was strong. However, the court expressed concern about the lack of cost control and consultation with the Attorney General, and required the trustees to obtain budgets, negotiate rates, and consult with the Attorney General before incurring further costs. Indemnity for costs was granted in principle, subject to proper negotiation and agreement on costs.

Court Disposition

Application granted in part; trustees' decision to litigate blessed with conditions.

Orders

  • The trustees are sanctioned to maintain and pursue the proceedings until two months after discovery, at which point they must return to court for further approval.
  • The trustees must obtain formal budgets for legal work, negotiate rates, and consult with the Attorney General before incurring further costs.