GL -v- Nautilus Trustees Limited [2009] JRC 164A (14 August 2009)

GL -v- Nautilus Trustees Limited [2009] JRC 164A (14 August 2009)

The Representor acted under a mistake as to the effect of the trust deed, specifically regarding the trustee's power to make loans to him on favourable terms. This mistake falls within the test in Gibbon v Mitchell, engaging the equitable jurisdiction to set aside the Trust and transfers. The interests of beneficiaries are remote, and it would not be unjust to them for the Trust to be set aside. No prejudice to third parties arises.

Citation
[2009] JRC 164A
Parties
Applicant: Representor; Respondent: Nautilus Trustees Limited
Jurisdiction
Jersey
Judgment Date
14 August 2009
Procedural Posture
Application to Set Aside Trust and Gifts / Final Judgment
Outcome
Trust and transfers set aside for mistake
Legal Topics
Mistake in Voluntary Transactions, Setting Aside Trusts, Beneficiary Rights, Discretionary Trusts
Trusts Equity Tax Mistake in Voluntary Transactions Setting Aside Trusts Beneficiary Rights Discretionary Trusts

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Parties

Representor

Applicant

Nautilus Trustees Limited

Respondent

Procedural Posture

Application to Set Aside Trust and Gifts / Final Judgment

Legal Issues

  1. 1 Whether the trust and transfers can be set aside for mistake
  2. 2 Whether beneficiaries or their representatives should be convened
  3. 3 Whether the Representor acted under a mistake as to the effect of the trust deed

Ratio Decidendi

The Representor acted under a mistake as to the effect of the trust deed, specifically regarding the trustee's power to make loans to him on favourable terms. This mistake falls within the test in Gibbon v Mitchell, engaging the equitable jurisdiction to set aside the Trust and transfers. The interests of beneficiaries are remote, and it would not be unjust to them for the Trust to be set aside. No prejudice to third parties arises.

Court Disposition

Trust and transfers set aside for mistake

Orders

  • Order setting aside the Trust and the transfers
  • Representor will not seek restitution of amounts paid to beneficiaries