On 23 April 2018, judgment was handed down by the Privy Council
in the long running dispute of Investec Trust (Guernsey)
Limited and another v Glenalla and others. The judgment has a
number of important implications in respect of trustees'
limitations of liability, but also in aspects of private
international law that reach beyond trustee law.
Background
This litigation involved a trust called the Tchenguiz
Discretionary Trust (the TDT) which was set up for the benefit of
Robbie Tchenguiz and his family in 2007. The TDT was subject to the
law of Jersey, but operated out of Guernsey.
A number of companies within the TDT claimed repayment of loans
said to be owed to them by Investec Trust (Guernsey) Limited (ITG)
and another company, as former trustees of the TDT. Kaupthing Bank
had exercised rights of security over these companies when the
financial crisis hit in 2008. It was the liquidators of those
companies (Grant Thornton) who sought repayment of the loans
