In the matter of the Onorati Settlement

This is an application by the representors, as beneficiaries of a sub-fund of the Onorati Settlement, for a declaration that a deed of appointment dated 4 th October, 2010, made by the respondent ("the trustee") as trustee is voidable and should be set aside. The application is made under the so-called Hastings-Bass principle ("the principle").

The principle has recently been the subject of detailed consideration by both the English Court of Appeal and the Supreme Court of the United Kingdom. Accordingly, before turning to the facts, we propose to summarise the law as it appears to be at present.

We shall begin by referring to some of the English cases because they have been relied upon by this Court when it has applied the principle.

Over the last twenty years or so, the English courts have developed a principle which was said to be derived from the case of Re Hastings-Bass , Hastings-Bass-v-IRC [1974] 2 All ER 193. The principle is concerned with decisions of trustees where they have failed to take into account relevant considerations or have taken into account considerations which they ought not to have. In most instances, it has been the trustees themselves who have sought to have their decision set aside on the basis of the principle.

It is not necessary for the purposes of the present case to refer to the various cases which developed the principle. A convenient summary of the principle (as it was understood to be) is to be found in the judgment of Lloyd LJ (sitting at first instance) in Sieff-v-Fox [2005] 3 All ER 693 , at [119]:-