Privy Council hands down judgment in the Re ZII Trust/Investec2 appeals

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.

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John Machell KC has a broad commercial chancery practice, with particular experience in large-scale litigation involving trusts, fiduciary/director duties, and fraud, particularly with an international dimension.

John is regarded as one of the leading partnership and LLP silks and has experience of a wide range of both contentious and non-contentious matters across the whole range of business sectors. A large part of his work involves issues arising from the use of partnerships and LLPs in hedge fund and private equity structures; in international commercial group structures; and as part of wealth planning strategies.

A substantial part of John’s practice is offshore, and he has appeared in the courts of Grand Cayman, the British Virgin Islands, and Bermuda on several occasions in recent years.