Royal Court Determines Guernsey’s First Public Trustee V Cooper Category 3 Type Application

Introduction

Carey Olsen's Guernsey litigation team achieved success in an application before the Royal Court of Guernsey recently in what is believed to be a first application of its kind to be determined in this jurisdiction.  The application was made on behalf of Kleinwort Benson (Guernsey) Trustees Ltd in its capacity as trustee of a major unit trust which had been promoted widely in the continent of Europe.  There were over 360 investors represented in these proceedings by a Court appointed representative.  The Application was one that is commonly known as a Public Trustee v. Cooper category 3 type, after the English decision of the same name, whereby a trustee surrenders its discretion to the Court which thereupon makes the actual decision affecting trust assets and beneficiaries.