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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) [2022] UKPC 36

On appeal from: [2019] JCA 106 & [2020] 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 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  [] has posted a CPD training video

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.

The speakers,

  • 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.


  1. How will the pari passu rule pan out in practice
  2. What steps should trustees take following Halabi
  3. The mechanics and issues that need to be considered in the relationship between the outgoing and incoming trustees
  4. Will the retiring trustee require a retention of trust fund assets
  5. Could trustees contract out of the pari passu rule to get priority?
  6. Will trustees now be more cautious about entering into contracts?
  7. Might third parties now be more cautious about contracting with trustees?
  8. Might parties to a DORA indemnity seek to insure the indemnity

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