In the matter of the E, L, O and R Trusts. [2008] JRC 150 (11 September 2008)

In the matter of the E, L, O and R Trusts. [2008] JRC 150 (11 September 2008)

Verite was in a plain and obvious conflict of interest from July 2006 and acted unreasonably by not retiring; it is not entitled to remuneration or indemnity for legal costs incurred after 25 July 2006 in connection with the retirement/removal issue and must pay costs of other parties.

Citation
[2008] JRC 150
Parties
First Respondent: Verite; Beneficiary: J; Beneficiary: H; Settlor: BA; Settlor: SA; Co Trustee: Appleby Trust (Jersey) Limited; Co Trustee: Jemma Trust Company Limited
Jurisdiction
Jersey
Judgment Date
11 September 2008
Procedural Posture
Trustee Removal Application / Post Hearing Judgment
Outcome
Verite not entitled to remuneration or indemnity for legal costs incurred after 25 July 2006 in connection with retirement/removal issue; ordered to pay costs of other parties.
Legal Topics
Removal of Trustee, Conflict of Interest, Trustee Costs, Fiduciary Duty
Trusts Equity Fiduciary Law Removal of Trustee Conflict of Interest Trustee Costs Fiduciary Duty

Case Brief

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Parties

Verite

First Respondent

J

Beneficiary

H

Beneficiary

BA

Settlor

SA

Settlor

Appleby Trust (Jersey) Limited

Co Trustee

Jemma Trust Company Limited

Co Trustee

Procedural Posture

Trustee Removal Application / Post Hearing Judgment

Legal Issues

  1. 1 Whether Verite should retire or be removed as trustee of the H Family trusts
  2. 2 Whether Verite acted unreasonably in not retiring earlier
  3. 3 Whether Verite is entitled to remuneration and indemnity for legal costs

Ratio Decidendi

Verite was in a plain and obvious conflict of interest from July 2006 and acted unreasonably by not retiring; it is not entitled to remuneration or indemnity for legal costs incurred after 25 July 2006 in connection with the retirement/removal issue and must pay costs of other parties.

Court Disposition

Verite not entitled to remuneration or indemnity for legal costs incurred after 25 July 2006 in connection with retirement/removal issue; ordered to pay costs of other parties.

Orders

  • Verite to bear its own legal costs and remuneration relating to both representations and retirement/removal issue after 25 July 2006.
  • Verite to pay costs of other parties incurred in first representation on standard basis.