Mrs FM v ASL Trustee

JurisdictionJersey
CourtRoyal Court
JudgeThe Deputy Bailiff
Judgment Date06 February 2006
Neutral Citation[2006] JRC 20A
Date06 February 2006

[2006] JRC 20A

ROYAL COURT

(Samedi Division)

Before:

M. C. St. J. Birt, Esq., Deputy Bailiff, and Jurats Le Breton and Le Cornu.

In the matter of the A Trust;

And in the matter of an Order of Mrs Justice Baron of the Family Division of the High Court of England and Wales.

Mrs F M
Representor
and
ASL Trustee Company Limited
Respondent

Advocate C. G. P. Lakeman for the Representor.

Advocate D. M. Cadin for the Representor.

Authorities

English Matrimonial Causes Act 1973.

Lane v Lane [1985/86] JLR 48.

Compass Trustees Limited v McBarnett [2002] JLR 321.

CI Law Trustees v Minwalla [2005] JRC 099.

Trust (Jersey) Law 1984.

The Deputy Bailiff
1

This is an application by FM, whom we shall call the ‘wife’, to give an effect to an order of Mrs Justice Baron made in the Family Division of the High Court of England and Wales on 21 st November, 2005, in divorce proceedings between her and Mr R M, the husband, in connection with the Jersey trust known as the ‘A Trust’.

2

This Court has held a number of hearings in relation to the Trust and its assets are currently held to the order of the Court. The Trust was established on 18 th June 1999, between the A Establishment of Lichtenstein, as settlor, and ASL Trustee Company Limited as trustee which company remains the trustee. It is governed by the law of Jersey. The Trust was a conventional discretionary trust of which the beneficiaries were the husband, the wife and their children.

3

However, following execution of a deed of appointment dated 8 th February, 2001, the trust fund is held upon trust to pay the income to the wife during her life with power to advance her capital; subject thereto to pay the income to the husband for his life with a like power to advance capital; and subject thereto upon discretionary trusts for the children of the husband and the wife.

4

The Trust holds the freehold of a property in Holland Park, the lower two floors of which were the matrimonial home and in which the wife and children still live. The Trust also hold long leasehold interests in three other flats in the building and there is a mortgage on the property.

5

The husband and the wife have been involved in acrimonious divorce proceedings. The husband comes from a wealthy Indian family which has substantial world wide business interests. The background to the case was set out in the judgment which we delivered on 12 November, 2004, and a fuller picture appears from the judgment of Mrs Justice Baron, in which she also found that the husband and his family had decided to do all they could to ensure that the wife did not receive anything upon her divorce from the husband.

6

This included instituting litigation in Dubai, India and Jersey all to the effect that the husband's father, or companies within the group, had proprietary claims against the assets of the Trust. Baron J. found that these claims were groundless and all part of the family's scheme to deny the wife any funds.

7

In the divorce proceedings the judge made a number of orders including that the husband should pay the wife a lump sum of £10 million. This remains unpaid by the husband who no longer resides in England. She made two orders in relation to the Trust which are relevant for today's purposes.

8

First, pursuant to the English Matrimonial Causes Act 1973 she varied the Trust so as to extinguish any interest that the husband might have in the Trust. Secondly, she ordered the husband to transfer to the wife the benefit of a loan to the trustee of the Trust, estimated at some £406,732 in April 2005. This was money the husband had contributed to the Trust but which had been recorded in the books as a loan rather than as a gift to the Trust.

9

The wife now applies to the Court for an order that the relevant paragraphs of the English order be recognised and enforced within this jurisdiction. The husband was refused leave to appeal against Baron J's order and the time for appealing has now expired with no appeal being lodged.

10

We should add that whilst, during the various hearings before us, this Court did all it could to ensure that the wife received funds from the Trust in order to maintain herself and her children in the face of the husband's family's machinations and the failure of the husband...

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6 cases
  • IMK Trust
    • Jersey
    • Royal Court
    • 15 August 2008
    ...Lane v Lane [1985-86] JLR 48. Compass Trustees Limited v McBarnett [2002] JLR 321. In Re the H Trust [2006] JLR 280. Re the A Trust [2006] JRC 020A. In Re B Trust [2006] JLR 562. Re the H Trust [2007] JRC 187. In Re the A and B Trusts [2007] JRC 138. Showlag v Mansour [1994] JLR 113. C......
  • Brunei Investment Agency and Bandone Sdn Bhd v Fidelis Nominees Ltd and Seven Others
    • Jersey
    • Royal Court
    • 16 September 2008
    ...sixth and seventh respondents; F.B. Robertson for the eighth respondent. Cases cited: (1) A Trust, In re, Royal Ct., February 6th, 2006, [2006] JRC 020A, unreported, referred to. (2) Adams v. Cape Indus. PLC, [1990] Ch. 433; [1991] 1 All E.R. 929; [1990] BCLC 479; [1990] BCC 786, considered......
  • The Representation of the Brunei Investment Agency and Bandone Sdn Bhd
    • Jersey
    • Royal Court
    • 16 September 2008
    ...The Origin and Development of Jersey law, an Outline Guide by Stéphanie Nicolle. Ball v King [2006] JRC 171. Mrs F M v ASL Trustee [2006] JRC 020A. In the matter of B Trust [2006] JLR 562. In the matter of H Trust [2006] JLR 280. In the matter of H Trust [2007] JRC 187. In the matter of the......
  • Mourant and Company Retirement Trustees Ltd v JG and HK
    • Jersey
    • Royal Court
    • 20 June 2008
    ...Re the B Trust [2006] JLR 562. Re the H Trust [2007] JRC 187. Re The Fountain Trust [2005] JLR 359. FM v ASL Trustee Company Limited [2006] JRC 020A. Trusts Law (as introduced by the Trusts (Amendment No.4) (Jersey) Law 2006). Saunders v Vautier (1841) Cr & Ph 240. Matthews & Sowden, The Je......
  • Request a trial to view additional results

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