Vol 16 (2019) - Issue 1

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Common Law Recognition of Limit on Foreign Trustee Liability

Synopsis

On 23 April 2018, the Privy Council handed down judgment in Investec Trust (Guernsey) Limited et al. v Glenalla Properties Limited et al. [2018] UKPC 7 on appeal from the Court of Appeal of Guernsey ('Guernsey CA'). The case relates to the family trusts of Robert and Vincent Tchenguiz and the events which occurred during the onset of the financial crisis in 2007 and following the collapse of Kaupthing Bank hf ('Kaupthing') in October 2008. It raises an important issue under the common law regarding the recognition of limitations of liability for foreign directors, managers, partners and trustees, and further addresses the scope of trustee indemnification and the rejection of a restitutionary claim arising from a complex group restructuring.