In re VR Family Trust v [2009] JLR 202 (02 June 2009)

A trust protector who advances claims against the trust is in a conflict of interest and, if it is not in the beneficiaries' interests for them to continue, must resign or be removed. Failure to do so may result in an order for indemnity costs against the protector.

Citation: [2009] JLR 202
Parties: Applicant: VR Family Trust; Respondent: Protector (unnamed)
Jurisdiction: Jersey
Judgment Date: 02 June 2009
Procedural Posture: Trusts Application for Directions/removal / Judgment on Application for Removal of Protector and Costs
Outcome: Protector found to be in conflict of interest; removal and indemnity costs ordered.
Legal Topics: Protector's Duties, Conflict of Interest, Removal of Trust Protector, Costs in Trust Litigation

Trusts Equity Protector's Duties Conflict of Interest Removal of Trust Protector Costs in Trust Litigation

Case Brief

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Parties

VR Family Trust

Applicant

Protector (unnamed)

Respondent

Procedural Posture

Trusts Application for Directions/removal / Judgment on Application for Removal of Protector and Costs

Legal Issues

1 Whether a trust protector who advances claims against the trust is in a conflict of interest
2 Whether the protector should resign or be removed
3 Whether the protector should be ordered to pay costs on an indemnity basis

Ratio Decidendi

Court Disposition

Protector found to be in conflict of interest; removal and indemnity costs ordered.

Orders

Protector to be removed if not resigned
Protector to pay parties' costs of removal application on indemnity basis