Principles applicable to legal costs incurred in trust-related proceedings in Jersey by trustees, other fiduciaries and beneficiaries
In its decision in Des Pallieres v JP Morgan Chase & Co, the Jersey Court of Appeal has provided a clear view of the principles that apply to costs awards in trust proceedings for parties acting in a fiduciary capacity. The Court of Appeal’s decision was preceded earlier this summer by the Royal Court’s decision in Re Dunlop Settlement in which the costs incurred by a beneficiary in trust-related proceedings were considered and which itself serves as a useful summary of the principles that will be applied.
The key point that emerges from the Court of Appeal’s judgment is that the principle of indemnity is paramount with regard to the costs incurred in trust proceedings by a trustee or other person with fiduciary functions in respect of a trust. The Court of Appeal confirmed that persons exercising fiduciary functions are entitled to an implied equitable indemnity in respect of costs reasonably incurred by that person in the exercise of those functions.
That indemnity is equivalent to the statutory indemnity enjoyed by a trustee and, accordingly, will lead as a matter of principle, to a prima facie entitlement to recover costs on a full trustee indemnity basis. That right of indemnity (whether express or implied) can only be lost in circumstances where the trustee is guilty of misconduct or acting unreasonably…
If you are registered and logged in to the site, click on the link below to read the rest of the Ogier briefing. If not, please register or sign in with your details below.
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 The Lawyer
Briefings from Ogier
The Cayman Islands legislature recently enacted The Insurance (Portfolio Insurance Companies) Regulations, 2015 and related sections of The Insurance (Amendment) Law, 2013.
There have been a number of significant legislative developments in Jersey since November 2012, as reflected in the length of this briefing.