A Settlement [2011] JRC 109 (01 June 2011)

A Settlement [2011] JRC 109 (01 June 2011)

The appropriate test in the context of a directions application is whether the documents are necessary for beneficiaries to make fully informed submissions. Disclosure of trustee-adviser communications and documents irrelevant to the directions hearing or which may prejudice future litigation or confidentiality interests should be refused. Only schedules of distributions, anonymised, are to be disclosed.

Citation
[2011] JRC 109
Parties
Applicant: First Respondents; Respondent: Representor (the trustee); Respondent: Third and Fourth Respondents (beneficiaries of the B and C settlements)
Jurisdiction
Jersey
Judgment Date
01 June 2011
Procedural Posture
Trust Directions Application / Interlocutory Application for Disclosure Prior to Directions Hearing
Outcome
Application for disclosure largely refused; limited disclosure ordered.
Legal Topics
Beneficiary Rights to Disclosure, Trustee Duties, Confidentiality in Trusts, Directions Hearings, Costs in Trust Litigation
Trust Law Beneficiary Rights to Disclosure Trustee Duties Confidentiality in Trusts Directions Hearings Costs in Trust Litigation

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Parties

First Respondents

Applicant

Representor (the trustee)

Respondent

Third and Fourth Respondents (beneficiaries of the B and C settlements)

Respondent

Procedural Posture

Trust Directions Application / Interlocutory Application for Disclosure Prior to Directions Hearing

Legal Issues

  1. 1 Are the first respondents as beneficiaries entitled to disclosure of specified trust documents prior to a directions hearing?
  2. 2 What is the appropriate test for disclosure in the context of a directions application?
  3. 3 Should confidentiality and potential prejudice to trust estates or future litigation affect disclosure?

Ratio Decidendi

The appropriate test in the context of a directions application is whether the documents are necessary for beneficiaries to make fully informed submissions. Disclosure of trustee-adviser communications and documents irrelevant to the directions hearing or which may prejudice future litigation or confidentiality interests should be refused. Only schedules of distributions, anonymised, are to be disclosed.

Court Disposition

Application for disclosure largely refused; limited disclosure ordered.

Orders

  • Trustee to update and disclose schedules of distributions for all three settlements, anonymising identity and residence of recipients.
  • Disclosure of certain non-confidential documents listed in Mr Cadin's skeleton argument permitted.