Estate of the Late J. D. Hanson [2021] JRC 319 (17 December 2021)

Estate of the Late J. D. Hanson [2021] JRC 319 (17 December 2021)

Mr O'Leary breached his duties as bare trustee by dishonestly transferring trust assets to a non-charitable Panamanian Foundation, acted fraudulently, and is liable to compensate the Plaintiffs for the value of ARTL at the date of misappropriation plus compound interest. The exercise of the power of appointment and Instrument of Advancement are void. Plaintiffs are entitled to relief despite alleged illegality, as denial would not serve public policy.

Citation
[2021] JRC 319
Parties
Defendant: Mr O'Leary; Claimant: Plaintiffs; Deceased/beneficiary: Mr Hanson
Jurisdiction
Jersey
Judgment Date
17 December 2021
Procedural Posture
Civil / Final Judgment
Outcome
Judgment for Plaintiffs
Legal Topics
Breach of Trust, Fraudulent Misappropriation, Equitable Compensation, Charitable Trusts, Illegality Doctrine
Trusts and Equity Fraud Charity Law Breach of Trust Fraudulent Misappropriation Equitable Compensation Charitable Trusts Illegality Doctrine

Case Brief

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Parties

Mr O'Leary

Defendant

Plaintiffs

Claimant

Mr Hanson

Deceased/beneficiary

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Did Mr O'Leary breach his duties as bare trustee by transferring the assets of the Trust to the Panamanian Foundation?
  2. 2 Was the Instrument of Advancement executed intra vires and in good faith?
  3. 3 Is Mr O'Leary liable for equitable compensation for misappropriation of trust assets?

Ratio Decidendi

Mr O'Leary breached his duties as bare trustee by dishonestly transferring trust assets to a non-charitable Panamanian Foundation, acted fraudulently, and is liable to compensate the Plaintiffs for the value of ARTL at the date of misappropriation plus compound interest. The exercise of the power of appointment and Instrument of Advancement are void. Plaintiffs are entitled to relief despite alleged illegality, as denial would not serve public policy.

Court Disposition

Judgment for Plaintiffs

Orders

  • Instrument of Advancement and power of appointment declared void
  • Mr O'Leary ordered to pay equitable compensation of £32,666,771 plus compound interest at 5.3% per annum to 30 November 2021