‘Landmark’ trust law ruling

Tuesday 28th June 2011, 3:00PM BST.

John Greenfield

A LEGAL ruling on trust law handed down by the Privy Council may have far-reaching effects on local law.

The Privy Council overruled the Guernsey Courts and applied English law in a landmark decision.

The Royal Court of Guernsey and the Guernsey Court of Appeal had previously ruled that it was incompatible for a trustee to act as a good father while exonerating itself from its own acts of gross negligence by a provision in the settlement deed.

But the Privy Council has disagreed with that verdict and ruled that trustees can be exonerated from their own gross negligence without breaking their duties to act as a good father.

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