Representation of BNP Paribas [2011] JRC 213 (03 November 2011)

Representation of BNP Paribas [2011] JRC 213 (03 November 2011)

The Trustee is in a position of conflict due to personal claims in Singapore and is entitled to surrender its discretion. The Trustee is directed to adopt a neutral stance in the Singapore proceedings, to seek removal of personal claims, and to fund its and J Limited's costs from the trust. Distributions from the trust are stayed pending resolution of the Singapore proceedings. The court declines to stay the Beddoes application as the Trustee is entitled to directions without delay.

Citation
[2011] JRC 213
Parties
Representor/trustee: BNP Paribas Trust Company (Jersey) Limited; Respondent: First Respondent (Settlor and mother); Respondents: Second to Sixth Respondents (siblings/beneficiaries); Respondent/plaintiff in Singapore: Seventh Respondent
Jurisdiction
Jersey
Judgment Date
03 November 2011
Procedural Posture
Beddoes Application (representation for Directions) / Judgment on Application for Directions Regarding Conduct in Foreign Proceedings
Outcome
Application granted in part; directions given to Trustee; stay of distributions ordered; application for stay of proceedings declined.
Legal Topics
Beddoes Application, Trustee Duties, Forum Non Conveniens, Constructive Trust, Funding of Litigation From Trust Assets
Trusts and Estates Private International Law Beddoes Application Trustee Duties Forum Non Conveniens Constructive Trust Funding of Litigation From Trust Assets

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Parties

BNP Paribas Trust Company (Jersey) Limited

Representor/trustee

First Respondent (Settlor and mother)

Respondent

Second to Sixth Respondents (siblings/beneficiaries)

Respondents

Seventh Respondent

Respondent/plaintiff in Singapore

Procedural Posture

Beddoes Application (representation for Directions) / Judgment on Application for Directions Regarding Conduct in Foreign Proceedings

Legal Issues

  1. 1 Whether the Trustee should be directed as to its conduct in Singapore proceedings involving trust assets
  2. 2 Whether the Trustee is in a position of conflict justifying surrender of discretion
  3. 3 Whether the Trustee should fund the seventh respondent's legal costs

Ratio Decidendi

The Trustee is in a position of conflict due to personal claims in Singapore and is entitled to surrender its discretion. The Trustee is directed to adopt a neutral stance in the Singapore proceedings, to seek removal of personal claims, and to fund its and J Limited's costs from the trust. Distributions from the trust are stayed pending resolution of the Singapore proceedings. The court declines to stay the Beddoes application as the Trustee is entitled to directions without delay.

Court Disposition

Application granted in part; directions given to Trustee; stay of distributions ordered; application for stay of proceedings declined.

Orders

  • Trustee to procure Singapore lawyers accept service for J Limited but not for Trustee.
  • Trustee to seek removal of personal claims in Singapore proceedings.