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ARTICLE · 21 MARCH 2024

Arbitrating Trust Affairs – Come For Arbitration, Stay For Legal Proceedings

There was an arbitration agreement between the parties that provided for arbitration of "any and all disputes…arising in connection" with issues regarding disclosure of the late settlor's...

Cayman IslandsLitigation, Mediation & Arbitration

The recent English case of Grosskopf v Grosskopf concerned an application by trustees for a stay of claims brought against them by a beneficiary. The beneficiary alleged misconduct by the trustees and sought the appointment of a judicial trustee pursuant to the Judicial Trustees Act 1896.

There was an arbitration agreement between the parties that provided for arbitration of "any and all disputes...arising in connection" with issues regarding disclosure of the late settlor's estate and assets. The English High Court had previously ruled that these issues include whether a full financial investigation of the trust was needed.

One question before the Court was whether the fact that the claim sought appointment of a judicial trustee, which the arbitral tribunal could not grant, made the matter incapable of arbitration. The beneficiary argued that this meant arbitration could not provide an effective remedy and argued against a stay.

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