Mon09252017

Last updateTue, 24 Feb 2015 5pm

Carey Olsen

Carey Olsen

John Greenfield and Elaine Gray outline recent Channel Island decisions on the personal liability of trustees

This article reviews a series of judgments delivered in 2014 and 2015 by the Guernsey Court of Appeal in the long-running Tchenguiz litigation. In particular it is worth looking at a judgment delivered on the 29 October 2014 Investec Trust (Guernsey) Ltd & ors v Glenalla Properties Ltd, which provided the first ever judicial interpretation of the statutory regime introduced by the laws of Guernsey and Jersey as to the personal liability of trustees for any obligations arising out of a Channel Island trust.

Russell Clark and Paula Fry discuss the Royal Court of Guernsey’s guidance on the applicable test for the removal of a protector in Re the K Trust

The Royal Court of Guernsey has considered, for the first time, an application for the summary removal of a protector on the grounds that her continuation in office would adversely impact on the welfare of the beneficiaries and the competent administration of the trust. In the process some novel points were deliberated including:

Lloyds Trust Co (CI) Ltd v Fragoso [2013] provides clarification for Jersey on how trustees hold assets derived from bribes in a trust. Alexa Saunders gives the lowdown

In its recent decision of Lloyds Trust Co (CI) Ltd v Fragoso [2013], the Royal Court in Jersey declined to follow a line of authority from the English Court of Appeal and instead applied a decision of the Privy Council (on appeal from New Zealand), and in doing so provided some clarity on how assets in a trust that represent bribes received by the settlor are held by trustees.