Shân Warnock-Smith KC appeared in the Privy Council for the successful Appellant in Equity Trust v Halabi (aka Z Trusts) on appeal from the Jersey Court of Appeal

Shân Warnock-Smith KC appeared in the Privy Council for the successful Appellant in Equity Trust v Halabi (aka Z Trusts) on appeal from the Jersey Court of Appeal.   The resulting landmark judgment handed down on 13 October concerned the position of successive trustees where the trust fund is insufficient to satisfy claims under their indemnities for costs and expenses reasonably incurred.  The Privy Council, by a majority, found for the Appellant in deciding that such claims rank pari passu, there being no priority for earlier-appointed trustees.   The court also held that the trustee’s indemnity right or “lien” gives it an equitable interest, comprising the right to have the trust fund applied towards its indemnity, that continues to subsist on a transfer of the fund to subsequent trustees.    The decision has far-reaching implications for trustees and their creditors.   Shân was instructed by Damian Lewis and Simon Hurry of Collas Crill in Jersey. To read the full judgement please click here.