This article investigates the proper ambit of trust jurisdiction clauses. The author proposes that whether a trust-related proceeding is or is not subject to any jurisdiction clause in the trust instrument should be decided according to two key criteria: the proximity of the parties to the proceeding to the drafting of the trust instrument and whether the issues under review in the proceeding are part of the routine running of the trust, an attempt to undermine the trust, or an attack on an officer’s functioning within the trust framework. Other factors to be taken into account are the likely costs of proceedings before the chosen court and elsewhere (including difficulties over security for costs), the extent to which the chosen court offers a realistic prospect of a fair hearing, and the extent to which any court orders granted, whether by the court named in a jurisdiction clause or another court, are likely to be enforceable in practice.
All Science Journal Classification (ASJC) codes
- Political Science and International Relations