Stock -v- Pantrust International and Others [2016] JRC 021 (22 January 2016)

Stock -v- Pantrust International and Others [2016] JRC 021 (22 January 2016)

Security taken by former trustees over trust assets in 2013 is invalid due to pervasive conflict of interest and absence of approval by beneficiaries or court. Facility letters were fictitious as no discretionary trusts existed per former trustees' own evidence. Security must be released to enable proper administration by the new trustee.

Citation
[2016] JRC 021
Parties
First Respondent, Former Trustee: Richard Wigley; Second Respondent, Former Trustee: James Wigley; Third Respondent, Former Trustee: Pantrust; Fourth Respondent, New Trustee: G. B. Trustees; Applicant/beneficiary: Representor
Jurisdiction
Jersey
Judgment Date
22 January 2016
Procedural Posture
Trust Litigation / Post Removal Consequential Hearing
Outcome
Security taken by former trustees in 2013 set aside; assets to be transferred to new trustee; further hearing on 2014 second charge.
Legal Topics
Trustee Removal, Fiduciary Duties, Self Dealing, Security Over Trust Assets, Conflict of Interest, Disclosure Obligations
Trust Law Company Law Conflict of Interest Trustee Removal Fiduciary Duties Self Dealing Security Over Trust Assets Disclosure Obligations

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Parties

Richard Wigley

First Respondent, Former Trustee

James Wigley

Second Respondent, Former Trustee

Pantrust

Third Respondent, Former Trustee

G. B. Trustees

Fourth Respondent, New Trustee

Representor

Applicant/beneficiary

Procedural Posture

Trust Litigation / Post Removal Consequential Hearing

Legal Issues

  1. 1 Validity of security taken by former trustees over trust assets
  2. 2 Conflict of interest in trustee actions
  3. 3 Transfer of trust assets to new trustee

Ratio Decidendi

Security taken by former trustees over trust assets in 2013 is invalid due to pervasive conflict of interest and absence of approval by beneficiaries or court. Facility letters were fictitious as no discretionary trusts existed per former trustees' own evidence. Security must be released to enable proper administration by the new trustee.

Court Disposition

Security taken by former trustees in 2013 set aside; assets to be transferred to new trustee; further hearing on 2014 second charge.

Orders

  • Transfer of shares in Basin Lane to new trustee within 28 days.
  • Transfer of shares in Park Heights to new trustee within 14 days.