What Can The Trustee Be Liable For?

Considering the liability standard for corporate trustees under English law

Despite being ubiquitous in capital markets documentation, the trustee's liability standard under English law governed documents often proves a contentious provision to negotiate. The issue of liability allocation is sensitive, as one party's liability exclusion necessarily (and often indirectly) increases the exposure on another. It is however generally accepted that a corporate trustee involved in a debt issuance is entitled to a potentially wide exclusion of liability. When discussing the trustee's liability standard, parties should consider when such a provision will be relevant and the usual standard of care owed by trustees and related case law and statutes.