Crociani -v- Crociani [2017] JRC 146 (11 September 2017)

Crociani -v- Crociani [2017] JRC 146 (11 September 2017)

Clause Eleventh of the Grand Trust deed, construed in context and against the matrix of facts, does not permit appointment of trust assets for the benefit of the Settlor, directly or indirectly. The 2010 appointment to the Fortunate Trust, which ultimately benefited Madame Crociani, was invalid as an excessive execution and a fraud on the power. Subsequent appointments and amendments, including appointment of Appleby Mauritius, Agate appointment, GFin appointment, and amendment to the Promissory Note, were also invalid or breaches of trust. The Foundation was not intended as a vehicle for Madame Crociani to benefit, but as a charitable default beneficiary.

Citation
[2017] JRC 146
Parties
First Plaintiff: Cristiana; First Defendant: Madame Crociani; Second Defendant: Mr Paul Foortse; Third Defendant: BNP Paribas Jersey Trust Corporation Limited; Fourth Defendant: Appleby Trust (Mauritius) Limited; Fifth Defendant: Camilla; Sixth Defendant: Camillo Crociani Foundation IBC (Bahamas) Limited; Seventh Defendant: BNP Paribas Jersey Nominee Company Limited; Eighth Defendant: GFin Corporate Services Limited
Jurisdiction
Jersey
Judgment Date
11 September 2017
Procedural Posture
Trust Litigation / Final Judgment
Outcome
Plaintiffs' claims substantially upheld; key appointments and amendments declared invalid; counterclaims dismissed.
Legal Topics
Validity of Trust Appointments, Breach of Trust, Fraud on Power, Mistake, Trustee Indemnity, Appointment of Trustees
Trusts Private International Law Equity Validity of Trust Appointments Breach of Trust Fraud on Power Mistake Trustee Indemnity +1 more

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Parties

Cristiana

First Plaintiff

Madame Crociani

First Defendant

Mr Paul Foortse

Second Defendant

BNP Paribas Jersey Trust Corporation Limited

Third Defendant

Appleby Trust (Mauritius) Limited

Fourth Defendant

Camilla

Fifth Defendant

Camillo Crociani Foundation IBC (Bahamas) Limited

Sixth Defendant

BNP Paribas Jersey Nominee Company Limited

Seventh Defendant

GFin Corporate Services Limited

Eighth Defendant

Procedural Posture

Trust Litigation / Final Judgment

Legal Issues

  1. 1 Validity of the 2010 appointment from Grand Trust to Fortunate Trust
  2. 2 Validity of appointment of Appleby Mauritius as trustee and change of proper law
  3. 3 Validity of Agate appointment

Ratio Decidendi

Clause Eleventh of the Grand Trust deed, construed in context and against the matrix of facts, does not permit appointment of trust assets for the benefit of the Settlor, directly or indirectly. The 2010 appointment to the Fortunate Trust, which ultimately benefited Madame Crociani, was invalid as an excessive execution and a fraud on the power. Subsequent appointments and amendments, including appointment of Appleby Mauritius, Agate appointment, GFin appointment, and amendment to the Promissory Note, were also invalid or breaches of trust. The Foundation was not intended as a vehicle for Madame Crociani to benefit, but as a charitable default beneficiary.

Court Disposition

Plaintiffs' claims substantially upheld; key appointments and amendments declared invalid; counterclaims dismissed.

Orders

  • 2010 appointment from Grand Trust to Fortunate Trust set aside
  • Appointment of Appleby Mauritius as trustee and change of proper law to Mauritius set aside