ARTICLE
14 May 2015

Subject To A Breach Of Trust For Investments Losses? From When Will Prescription Run?

CC
Collas Crill

Contributor

Collas Crill is an offshore law firm with offices in BVI, Cayman, Guernsey, Jersey and London.

We deliver a comprehensive range of legal services to clients locally and globally in four broad practice areas: Financial Services and Regulatory; Insolvency and Corporate Disputes; Private Client and Trusts; and Real Estate.

Clients include some of the world’s leading financial institutions, international businesses, trusts and funds, as well as high-net-worth individuals and families across the globe. We continue to build a network of independent and trusted partners around the world including the Caribbean, the Channel Islands, the UK, Europe, the US, the Middle East, South Africa and Asia.

In a recent Guernsey case the key issue for the Court was the date on which the party bringing the claim had the requisite knowledge of the breaches of trust to start time running under the Guernsey trust law.
Guernsey Corporate/Commercial Law

In a recent Guernsey case the key issue for the Court was the date on which the party bringing the claim had the requisite knowledge of the breaches of trust to start time running under the Guernsey trust law.  The Court found that the required degree of knowledge was that which would have made it reasonable for the plaintiff to begin to investigate whether there had been a breach of trust. Such knowledge would include knowledge that loss had apparently been suffered and that there was a real possibility (as opposed to a mere suspicion or view that this was just one possibility) that such loss had been caused by the negligent acts or omissions of the trustees.  It did not require knowledge of the "how" or the "why" of any relevant alleged acts or omissions by the trustees.  See Broadhead v Spread Trustee Company Limited & Ors (Guernsey Judgement 46/2014).

A copy can be provided on request from Collas Crill. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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