Privy Council case of Equity Trust v Halabi – CPD opportunity from HNW Advisor
I thought you would be interested in learning more about the ground-breaking Privy Council case of Equity Trust v Halabi.
Equity Trust (Jersey) Ltd (Respondent) v Halabi (in his capacity as Executor of the Estate of the late Madam Intisar Nouri) (Appellant) (Jersey)
ITG Ltd and others (Respondents) v Fort Trustees Ltd and another (Appellants) (Guernsey)  UKPC 36
On appeal from:  JCA 106 &  GCA043
- The Privy Council case of Equity Trust v Halabi considers, amongst other things, the nature and scope of a trustee’s right to be indemnified out of trust assets for expenses/liabilities properly incurred - usually via an equitable lien over the trust fund.
- The judgement is here https://www.jcpc.uk/cases/docs/jcpc-2019-0119-judgment.pdf
- Case details are here https://www.jcpc.uk/press-summary/jcpc-2019-0119.html
- The judgment focuses on what happens as between successive trustees when there’s an ‘insolvent trust’, rejecting a ‘first in time’ rule in favour of a pari passu one for enforcement between successive trustees.
If you are interested to learn more, HNW Advisor [https://hnwadvisor.com/courses] has posted a CPD training video https://hnwadvisor.com/course/insolvent-trust-halabi
In this CPD session,
- HNW speakers [BELOW] consider how this decision will pan out in practice both from the point of view of successive and retiring trustees as well as third parties contracting with trustees.
- Shan Warnock-Smith KC (who argued in favour of the pari passu rule before the Privy Council), and Paul Hodgson, Deputy Group Head of Trust at Butterfield Group, offer their views from a legal point of view as well as from within the industry.
PRACTICAL ISSUES ADDRESSED AND CONSIDERED, INCLUDE:
- How will the pari passu rule pan out in practice
- What steps should trustees take following Halabi
- The mechanics and issues that need to be considered in the relationship between the outgoing and incoming trustees
- Will the retiring trustee require a retention of trust fund assets
- Could trustees contract out of the pari passu rule to get priority?
- Will trustees now be more cautious about entering into contracts?
- Might third parties now be more cautious about contracting with trustees?
- Might parties to a DORA indemnity seek to insure the indemnity
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