Defendant not prejudiced by court orders conveying legal title to trust property to new trustee

By: Ian Fitzharris BL

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High Court, in trusteeship proceedings, refuses application by defendant to stay prior court orders requiring the defendant be replaced as trustee of the trust and to convey legal title to the trust property to the new trustee, on the grounds that the defendant has failed to establish that it would be prejudiced by such orders (in circumstances where the court has found there to be no monetary value to the interest being conveyed, and therefore no adverse tax implications for the defendant, as is alleged); and that the plaintiff is clearly commercially prejudiced if the orders are not in fact carried out in good time.

Application to stay court orders - trusts - defendant, by prior order of the court, ordered to be replaced as a trustee at trust in issue and to convey legal title of trust property to new trustee - submissions by plaintiff that application is an attempt to frustrate court orders - balance of convenience - 'clean hands' principle - litany of breaches of duty by defendant - defendant's failure to implement the court's order in the immediate aftermath of judgment - no prejudice to defendant regarding purported adverse tax implications - defendant merely holds the bare legal title - plaintiff needs to show title for commercial reasons - order for execution of conveyance of legal title to stand

Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.

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