Oops! Can A Trustee's Mistake Be Undone?

In the recent case of AB and CD (CHP 2016/7) the Isle of Man Court has given some consideration to the so called rule in Hastings-Bass, applied the established Manx authorities on mistake and considered the application of the rules set out in Delphi Trust Limited 2014 MLR 51 in respect of protected information orders.

Mistake

The Court will set aside a voluntary transaction on the grounds of mistake based on the established Isle of Man case law. Known as the "but for" test, the Court will invoke this jurisdiction if the mistake was so serious as to render it unjust and unconscionable for the donee to retain the property given to him, irrespective of the precise nature of the mistake.