Investec in the Privy Council

The Privy Council has this morning given judgment in Investec Trust (Guernsey) Ltd v. Glenalla Properties Ltd [2018] UKPC 7. The decision can be read on BAILII at

Some of the points arising:

  • TJL art. 32 (limitation on liability of trustee to third parties) operates via the trustee’s right of indemnity; it does not give a direct right of recourse to the trust fund.
  • Creditors’ rights depend on the proper law of the trust.
  • Trustees are entitled to an indemnity for liabilities reasonably incurred under TJL art. 26(2) without inquiry whether the trustee was later unreasonable in allowing them to persist.
  • Neither TJL art. 32 nor the equivalent in Guernsey, TGL s. 42, is apt to apply to a liability for costs.

There are a good many other points discussed.

Nicholas Le Poidevin, Q.C.
New Square Chambers