Beddoe Relief Where A Third Party Claim May Exhaust Trust Assets

The Grand Court of the Cayman Islands has granted Beddoe relief to a trustee, in circumstances where a successful third party claim would have exhausted the trust assets. 

Introduction

The Honourable Chief Justice Anthony Smellie QC has delivered an important judgment, clarifying the ability of a Cayman Islands trustee to obtain Beddoe relief when faced with a third party claim that exceeds the value of the assets currently held in trust¹. 

In reaching this decision, the Chief Justice also addressed the scope of a third party litigant's ability to participate in a Beddoe application and who should bear the burden of costs, as between the third party and the trustee.

Facts