Matthews v Matthews [2001] JCA 216 (26 October 2001)

Matthews v Matthews [2001] JCA 216 (26 October 2001)

The Royal Court applied the correct legal principles in exercising its inherent jurisdiction to grant an injunction preserving trust assets in matrimonial proceedings. The threshold for risk of dissipation in such cases is lower than in commercial cases, and the Royal Court adequately considered the risk and the trustees' duties. No material change of circumstances (such as the resignation of Mr. Matthews as trustee) justified interfering with the order. The appeal is dismissed.

Citation
[2001] JCA 216
Parties
Plaintiff: Mrs. Matthews; First Defendant: Mr. Ian Matthews; Second Defendants: Trustees of the Lord Matthews Trust (Mr. Matthews and Mr. Coutanche)
Jurisdiction
Jersey
Judgment Date
26 October 2001
Procedural Posture
Appeal (interlocutory) / Appeal From Interlocutory Injunction Order
Outcome
Appeal dismissed
Legal Topics
Freezing Injunctions, Ancillary Relief in Divorce, Trustee Duties, Dissipation of Assets, Inherent Jurisdiction, Matrimonial Property
Family Law Trusts and Estates Civil Procedure Freezing Injunctions Ancillary Relief in Divorce Trustee Duties Dissipation of Assets Inherent Jurisdiction +1 more

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Parties

Mrs. Matthews

Plaintiff

Mr. Ian Matthews

First Defendant

Trustees of the Lord Matthews Trust (Mr. Matthews and Mr. Coutanche)

Second Defendants

Procedural Posture

Appeal (interlocutory) / Appeal From Interlocutory Injunction Order

Legal Issues

  1. 1 Whether the Royal Court applied the correct legal test in re-imposing an injunction restraining trustees from disposing of trust assets in matrimonial proceedings
  2. 2 Whether the risk of dissipation of assets was adequately considered
  3. 3 Whether the interests of minor beneficiaries were properly weighed

Ratio Decidendi

The Royal Court applied the correct legal principles in exercising its inherent jurisdiction to grant an injunction preserving trust assets in matrimonial proceedings. The threshold for risk of dissipation in such cases is lower than in commercial cases, and the Royal Court adequately considered the risk and the trustees' duties. No material change of circumstances (such as the resignation of Mr. Matthews as trustee) justified interfering with the order. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Interlocutory injunction order of the Royal Court re-imposed; trustees restrained from disposing of trust assets pending further order or judgment.
  • Application to introduce evidence of Mr. Matthews' resignation as trustee noted but found not to be a material change of circumstances.