In the matter of HHH Trust [2015] JRC 193 (22 September 2015)

In the matter of HHH Trust [2015] JRC 193 (22 September 2015)

A beneficiary cannot directly challenge the costs claimed by a fiduciary from the trust fund when the trustee has exercised its discretion and agreed to pay those costs, unless the trustee's decision is impugned for improper exercise of discretion. The court will not intervene or order an assessment unless the trustee surrenders its discretion or acts unreasonably or unlawfully.

Citation
[2015] JRC 193
Parties
Applicant/beneficiary: B; Respondent/settlor/fiduciary: E; First Respondent/trustee: Trustee (unnamed)
Jurisdiction
Jersey
Judgment Date
22 September 2015
Procedural Posture
Representation/application Under Article 51(2) of the Trusts (jersey) Law 1984 / Post Judgment Costs Assessment Challenge
Outcome
application refused
Legal Topics
Trustee Powers, Fiduciary Indemnity, Costs Assessment, Beneficiary Rights, Court Supervision of Trusts
Trust Law Equity Trustee Powers Fiduciary Indemnity Costs Assessment Beneficiary Rights Court Supervision of Trusts

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Parties

B

Applicant/beneficiary

E

Respondent/settlor/fiduciary

Trustee (unnamed)

First Respondent/trustee

Procedural Posture

Representation/application Under Article 51(2) of the Trusts (jersey) Law 1984 / Post Judgment Costs Assessment Challenge

Legal Issues

  1. 1 Whether a beneficiary can directly challenge the costs claimed by a fiduciary (settlor) from the trust fund when the trustee has agreed to pay them
  2. 2 Whether the court should order an assessment of such costs under Article 51(2) of the Trusts (Jersey) Law 1984

Ratio Decidendi

A beneficiary cannot directly challenge the costs claimed by a fiduciary from the trust fund when the trustee has exercised its discretion and agreed to pay those costs, unless the trustee's decision is impugned for improper exercise of discretion. The court will not intervene or order an assessment unless the trustee surrenders its discretion or acts unreasonably or unlawfully.

Court Disposition

application refused

Orders

  • B's application for an assessment of E's costs is refused
  • The trustee is directed to discharge E's costs in the agreed sum of £270,034.26 out of the trust fund of the B Sub-Trust