Jersey Judgment

In re X Trust v [2012] 2 JLR 260 (01 October 2012)

Trusts Civil Procedure Derivative Actions by Beneficiaries Costs in Trust Litigation Court's Inherent Supervisory Jurisdiction

Citation: [2012] 2 JLR 260
Status: Judgment
Jurisdiction: Jersey
Posture: Trusts Derivative Action / Costs Application

More details

Posture: Trusts Derivative Action / Costs Application

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Professional case brief

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Source document

Holding and result

The court may order beneficiaries' costs of a derivative action against trustees for breach of trust to be paid from the trust fund if the action is well founded, there is no alternative funding, and the prospects of success or risk of failure effectively fall on the beneficiaries.

Court disposition

Application granted

Orders

Beneficiaries' costs of the derivative action to be paid from the trust fund if in the best interests of the trust.

Material facts

Parties

Beneficiaries of X Trust

Applicant

Trustees of X Trust

Respondent

Procedural history

Posture

Trusts Derivative Action / Costs Application

Questions and positions

Legal issues

Whether the court may order beneficiaries' costs of a derivative action against trustees for breach of trust to be paid from the trust fund

Party arguments

Applicant: Beneficiaries seek payment of their costs from the trust fund for bringing a derivative action against trustees for breach of trust, arguing it is in the best interests of the trust.
Respondent: Trustees oppose payment of beneficiaries' costs from the trust fund.

Court’s reasoning

Legal principles

01
In re X Trust v [2012] 2 JLR 260

The court, in exercise of its inherent supervisory jurisdiction, may order beneficiaries' costs of a derivative action against trustees for breach of trust to be paid from the trust fund if it is in the best interests of the trust.

Ratio, limits and disposition

Ratio decidendi

The court may order beneficiaries' costs of a derivative action against trustees for breach of trust to be paid from the trust fund if the action is well founded, there is no alternative funding, and the prospects of success or risk of failure effectively fall on the beneficiaries.

Obiter and limits

Such an order is appropriate, for example, if the action is well founded, there is no alternative funding, and the prospects of success or risk of failure effectively fall on the beneficiaries.

Court disposition

Application granted

Beneficiaries' costs of the derivative action to be paid from the trust fund if in the best interests of the trust.

Source and reliance status

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Judgment text

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Court record

Judgment

[2012] 2 JLR 260

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BAILII >> Databases >> Jersey Law Reports >> In re X Trust v [2012] 2 JLR 260 (01 October 2012) URL: https://www.bailii.org/je/cases/JLR/2012/JLR122260.html Cite as: [2012] 2 JLR 260 [ New search ] [ Help ] In re X Trust v 2012 (2) JLR 260 (01 October 2012) Trusts-legal proceedings-derivative action by beneficiaries-in exercise of inherent supervisory jurisdiction, court may order beneficiaries' costs of derivative action against trustees for breach of trust to be paid from trust fund if in best interests of trust-e.g. if action well founded; no alternative funding; and prospect of success/risk of failure effectively on beneficiaries 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: 2012 (2) JLR 260 BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII URL: https://www.bailii.org/je/cases/JLR/2012/JLR122260.html

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In re X Trust v [2012] 2 JLR 260

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