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Cases :
GRUPO TORRAS v. FAHAD
1994 No.72/1 OFLR 443
An interlocutory ruling, showing the Court unwilling to allow the asset protection trust legislation to be used as a cover for alleged fraud.The Court of Appeal placed more emphasis on the fact that the settlor retained substantial and effective control over the trust fund. The Court maintained the Mareva injunction and (with some amendment) the order for discovery and indicated its willingness to disregard the trust altogether.The editor of the OFLR comments that “the Court of Appeal appears to have ignored the fiduciary duties owed by a trustee to all beneficiaries …… and treated the trustee as the virtual puppet of the primary bene-ficiary.” He (rightly) deplores the absence of analysis of the operation of the “flee clause” in these circumstances.
GRUPO TORRAS v. FAHAD
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GRUPO TORRAS V. MEESPIERSON
2 OFLR 163/2ITELR 29
This is one of the cases where the Court decided that a Mareva injunction may be granted in the absence of a substantive cause of action. The decision was reversed on appeal.
GRUPO TORRAS V. MEESPIERSON
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MERCADO & SHENK v. CITITRUST
Eq No 1252
Should a trustee who has lost the confidence of his beneficiaries resign in favour of a trustee they prefer, or should he allow his name to appear in a reported case on this subject? In this case, the judge did not address this question, but he did order a change of trustee.
MERCADO & SHENK v. CITITRUST
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NOVA SCOTIA TRUST v. BARLETTA
Eq No 550 of 1984
Two points emerge from this case. One is the rather obvious proposition that expressions in a letter of wishes do not circumscribe the powers of the trustees provided in the trust instrument. The other is the rather alarming proposition that the parent of a corporate trustee may make a profit from a trust administered by its subsidiary.
NOVA SCOTIA TRUST v. BARLETTA
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RAWSON TRUST v. PERLMAN
Eq No 194 of 1984
Out of a welter of issues in this case, there emerges one of general importance. A trust instrument may – and commonly does – confer on someone called a “protector” (and the name is immaterial) powers to be exercised on for the benefit of other people. But a trust instrument otherwise drafted may confer on a person similarly named powers exercisable for his own benefit, and this was the case here.
RAWSON TRUST v. PERLMAN
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ROYWEST TRUST v. NOVA SCOTIA TRUST
Eq No 431 of 1985
The judgement is replete with facts and issues, but two passages of general interest stand out. How is the self-dealing rule to be applied by a trustee who is trustee of two trusts dealing with each other? And can an exclusive clause exonerate a trustee from everything short of fraud? (It can.)
ROYWEST TRUST v. NOVA SCOTIA TRUST
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