The Privy Council today handed down a landmark judgment in trusts law in the cases of ITG Ltd v Fort Trustees Ltd and Equity Trust (Jersey) Ltd v Halabi, holding that a trustee’s right of indemnity gives them a proprietary interest in the trust assets which survives cessation of trusteeship, but, by a 4 to 3 majority and allowing the appeals, that, if the trust assets are insufficient to satisfy the claims of all trustees, the liens of the trustees rank pari passu among themselves rather than on a first in time basis.

John Machell KC assisted by John Eldridge acted for the Appellants in the ITG case and James Brightwell assisted by Andrew Gurr acted for the Respondents.

The judgment can be viewed here.