In the matter of the I Trust, the J Trust, the K Trust and the L Trust [2018] JRC 214 (23 November 2018)

In the matter of the I Trust, the J Trust, the K Trust and the L Trust [2018] JRC 214 (23 November 2018)

The trustee's conduct in failing to provide routine trust documentation promptly and acting with excessive caution was unreasonable and amounted to misconduct. This justified an order that the trustee pay the Representors' costs of and incidental to the representation on the standard basis and be denied indemnity from the trust fund for its own costs related to the proceedings.

Citation
[2018] JRC 214
Parties
Applicant: Representors; Respondent: Respondent (Trustee)
Jurisdiction
Jersey
Judgment Date
23 November 2018
Procedural Posture
Costs Application in Trust Proceedings / Post Disclosure, Costs Determination
Outcome
Trustee ordered to pay Representors' costs on the standard basis; trustee denied indemnity from trust fund for its own costs of and incidental to the representation.
Legal Topics
Disclosure of Trust Documents, Trustee Misconduct, Costs Orders, Beneficiary Rights
Trusts and Estates Costs Disclosure of Trust Documents Trustee Misconduct Costs Orders Beneficiary Rights

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Parties

Representors

Applicant

Respondent (Trustee)

Respondent

Procedural Posture

Costs Application in Trust Proceedings / Post Disclosure, Costs Determination

Legal Issues

  1. 1 Whether the trustee's conduct justified an award of costs against it
  2. 2 Whether indemnity costs or standard costs should be awarded
  3. 3 Whether the trustee should be denied indemnity from the trust fund for its own costs

Ratio Decidendi

The trustee's conduct in failing to provide routine trust documentation promptly and acting with excessive caution was unreasonable and amounted to misconduct. This justified an order that the trustee pay the Representors' costs of and incidental to the representation on the standard basis and be denied indemnity from the trust fund for its own costs related to the proceedings.

Court Disposition

Trustee ordered to pay Representors' costs on the standard basis; trustee denied indemnity from trust fund for its own costs of and incidental to the representation.

Orders

  • Respondent to pay personally the costs of the Representors of and incidental to the representation on the standard basis.
  • Respondent not entitled to indemnity from the trust fund for its own costs of and incidental to the representation.