CC Ltd -v- Apex Trust Ltd [2012] JRC 071 (30 March 2012)

CC Ltd -v- Apex Trust Ltd [2012] JRC 071 (30 March 2012)

The transfer of assets to the Trust is set aside because the Company acted under two serious mistakes as to the legal effect of the Trust: (1) believing family members could benefit from the Assets via loans, and (2) believing nominees could benefit after their deaths. Jersey law applies by statute, and the mistakes satisfy the Jersey test for setting aside a disposition.

Citation
[2012] JRC 071
Parties
Representor: The Company; First Trustee: Atlas Trust Company (Jersey) Limited; Former Trustee: Nautilus Trust Company Limited; Current Trustee: Apex; Director, Family Member: The son; Family Member: The daughter; Family Member: The mother
Jurisdiction
Jersey
Judgment Date
30 March 2012
Procedural Posture
Application to Set Aside Transfer of Assets to Trust / Judgment After Hearing
Outcome
transfer of assets to the Trust set aside
Legal Topics
Mistake in Trust Creation, Jurisdictional Choice of Law, Setting Aside Voluntary Dispositions
Trust Law Conflict of Laws Equity Mistake in Trust Creation Jurisdictional Choice of Law Setting Aside Voluntary Dispositions

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Parties

The Company

Representor

Atlas Trust Company (Jersey) Limited

First Trustee

Nautilus Trust Company Limited

Former Trustee

Apex

Current Trustee

The son

Director, Family Member

The daughter

Family Member

The mother

Family Member

Procedural Posture

Application to Set Aside Transfer of Assets to Trust / Judgment After Hearing

Legal Issues

  1. 1 Whether the transfer of assets to the trust should be set aside for mistake
  2. 2 Whether Jersey law or English law governs the issue

Ratio Decidendi

The transfer of assets to the Trust is set aside because the Company acted under two serious mistakes as to the legal effect of the Trust: (1) believing family members could benefit from the Assets via loans, and (2) believing nominees could benefit after their deaths. Jersey law applies by statute, and the mistakes satisfy the Jersey test for setting aside a disposition.

Court Disposition

transfer of assets to the Trust set aside

Orders

  • The transfer of the Assets to the Trust is set aside.