In re E Trust v [2008] JLR 360 (11 September 2008)
- Citation
- [2008] JLR 360
- Status
- Judgment
- Jurisdiction
- Jersey
- Posture
- Trusts Retirement of Trustees / Application for Retirement of Trustee Due to Conflict of Interest
More details
- Posture
- Trusts Retirement of Trustees / Application for Retirement of Trustee Due to Conflict of Interest
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
Where a trustee is faced with an obvious conflict of interest due to being trustee of two trusts with beneficiaries in dispute and a real prospect of litigation, the trustee must retire from one trust without considering the interests of the other trust's beneficiaries, and without the need for court directions, regardless of the absence of criticism or other complicating factors.
Court disposition
Trustee required to retire from one trust due to conflict of interest.
Orders
- Trustee to retire from one trust without need for court directions.
02
Material facts
Parties
E Trust
Applicant03
Procedural history
Posture
Trusts Retirement of Trustees / Application for Retirement of Trustee Due to Conflict of Interest
04
Questions and positions
Legal issues
Whether a trustee of two trusts must retire from one trust due to a conflict of interest when beneficiaries are in dispute over trust assets and there is a real prospect of litigation
Party arguments
- Applicant
- The trustee faces a conflict of interest as a result of being trustee of two trusts with beneficiaries in dispute over trust assets, involving complex negotiations and a real prospect of litigation, and therefore seeks to retire from one trust.
- Respondent
- A non-beneficiary, whose opinion was to be considered per a letter of wishes, opposes the trustee's retirement.
05
Court’s reasoning
Legal principles
- 01
Jersey trust law, as applied in this case
A trustee of two trusts has a conflict of interest if beneficiaries are in dispute concerning trust assets, especially where there is a real prospect of litigation in which the trustee may be both claimant and defendant.
- 02
Jersey trust law, as applied in this case
On request to retire from one trust, the trustee must not consider the interests of beneficiaries of the other trust.
- 03
Jersey trust law, as applied in this case
If there is an obvious conflict of interest, the trustee should retire without the need for directions from the court, even if there is no criticism of the trusteeship, substantial trust assets, or instructions in a letter of wishes to consider the opinion of a non-beneficiary.
06
Ratio, limits and disposition
Ratio decidendi
Where a trustee is faced with an obvious conflict of interest due to being trustee of two trusts with beneficiaries in dispute and a real prospect of litigation, the trustee must retire from one trust without considering the interests of the other trust's beneficiaries, and without the need for court directions, regardless of the absence of criticism or other complicating factors.
Court disposition
Trustee required to retire from one trust due to conflict of interest.
- Trustee to retire from one trust without need for court directions.
Source and reliance status
Official court record
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Court record
Judgment
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BAILII >> Databases >> Jersey Law Reports >> In re E Trust v [2008] JLR 360 (11 September 2008) URL: https://www.bailii.org/je/cases/JLR/2008/JLR080360.html Cite as: [2008] JLR 360 [ New search ] [ Help ] In re E Trust v 2008 JLR 360 (11 September 2008) Trusts-retirement of trustees-conflict of interest-trustee of two trusts has conflict of interest if beneficiaries in dispute concerning trust assets, complex negotiations in which interests conflict and real prospect of litigation (in which trustee may be both claimant and defendant)-on request to retire from one trust, trustee not to consider interests of beneficiaries of other trust-if obvious conflict of interest, trustee to retire without directions of court, even if no criticism of trusteeship; substantial trust assets; and instruction in letter of wishes to consider opinion of non-beneficiary, who opposes retirement The document you wish to view is available to registered users or can be purchased as a PDF. To purchase this document in PDF format or alternatively to Register to purchase membership go to the Jersey Law website via this link: 2008 JLR 360 BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII URL: https://www.bailii.org/je/cases/JLR/2008/JLR080360.html
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