Abacus (C.I.) Ltd. v Hirschfield [2001] JLR 530 (17 September 2001)

Abacus (C.I.) Ltd. v Hirschfield [2001] JLR 530 (17 September 2001)

The court may accept a trustee's surrender of discretion when there is good reason, including the relevance of ongoing litigation, and must then exercise that discretion in the best interests of the trust and beneficiaries as if it were the trustee.

Citation
[2001] JLR 530
Parties
Trustee: Abacus (C. I.) Ltd.; Beneficiary: Hirschfield
Jurisdiction
Jersey
Judgment Date
17 September 2001
Procedural Posture
Application for Directions / Judgment
Outcome
Court accepted the trustee's surrender of discretion and undertook to exercise it.
Legal Topics
Powers and Duties of Trustees, Surrender of Discretion, Court Directions
Trusts Powers and Duties of Trustees Surrender of Discretion Court Directions

Case Brief

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Parties

Abacus (C. I.) Ltd.

Trustee

Hirschfield

Beneficiary

Procedural Posture

Application for Directions / Judgment

Legal Issues

  1. 1 Whether the court may accept a trustee's surrender of discretion
  2. 2 What considerations guide the court in exercising discretion surrendered by a trustee

Ratio Decidendi

The court may accept a trustee's surrender of discretion when there is good reason, including the relevance of ongoing litigation, and must then exercise that discretion in the best interests of the trust and beneficiaries as if it were the trustee.

Court Disposition

Court accepted the trustee's surrender of discretion and undertook to exercise it.

Orders

  • Court to exercise discretion in best interests of trust and beneficiaries