Investec and Ors v Glenalla and Ors — Court of Appeal judgment 27 June 2014
The judgment in the Court of Appeal in the above matter considered an appeal on one part of the judgment of Lieutenant Bailiff Chadwick (the Judge) of December 2013 (the remainder of the appeal is yet to be heard). While the dispute itself was a complex trust dispute involving several parties’ claims and counterclaims in relation to various transactions, this appeal focused on a very specific but important point: can Guernsey-based trustees of a Jersey-law trust benefit from the limitation of liability provisions available to trustees under article 32 of the Trusts (Jersey) Law 1984 (hereinafter ‘the Jersey Trust Law’) in relation to a contract, the governing law of which is not Jersey?
Investec Trust (Guernsey) and Bayeux Trustees (together the ‘former trustees’) were the Guernsey-based trustees of the Jersey law Tchenguiz Discretionary Trust (TDT). In their role as trustees, the former trustees recorded that a number of loan arrangements had been entered into with several British Virgin Islands (BVI) companies, now in liquidation (the ‘BVI companies’). Proceedings were issued in which the BVI companies sought repayment of the loan arrangements, and the amounts claimed exceeded the value of the assets in the trust. Whether the monies are due and owing was the subject of lengthy litigation. One particular aspect of that litigation was if it were found that monies were due and owing under the loans, whether the amounts claimed were limited to the value of the trust fund or whether the former trustees were personally liable to pay the shortfall once the assets of the trust had been exhausted.
Article 32 of the Jersey Trust Law limits a trustee’s liability to third parties in the circumstances where it is clear that a trustee is acting qua trustee. This acts to limit the trustee’s liability to the trust property (although it should be noted that this does not affect any liability a trustee may have for breach of trust)…
Click on the link below to read the rest of the Ogier briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Ogier
News from The Lawyer
Briefings from Ogier
Decisions over the past 12 months will provide considerable comfort to those concerned about exposure to clawback action.
The High Court of England and Wales may refuse to exercise its discretion to wind up companies incorporated abroad where there would be little likelihood of the petitioners deriving benefit from the winding-up.