TMD (Appellant) v ZXD and another (Respondents) (Virgin Islands)

Permission to Appeal application lodged

Case summary
Permission to Appeal
Previous proceedings

Case summary

Case ID

JCPC/2025/0105

Jurisdiction

British Virgin Islands

Parties

Appellant(s)

TMD

Respondent(s)

ZXD

FDG

Issue

Should orders relating to (i) the removal of a trustee, (ii) protective relief for a beneficiary, and (iii) the sealing of the court’s file in relation to a trust have been stayed or refused pending the determination of appeals of those orders?

Facts

The appellant TMD and the first respondent ZXD are individual beneficiaries of a substantial discretionary trust (“the Trust”) governed by BVI law. The second respondent company FDG is the trustee of the Trust. The investment approaches and commercial preferences of TMD and ZXD differed in relation to the Trust. Accordingly, a former trustee began notionally allocating assets for (a) the joint benefit of TMD and ZXD (“Group 1 assets”), (b) the sole benefit of TMD (“Group 2 assets”), and (c) the sole benefit of ZXD (“Group 3 assets”). This was to enable a separation of the assets that formed the subject of the Trust between TMD and ZXD, other than those which for commercial or practical reasons needed to be held jointly between them. At the time, the intention was that eventually the jointly held Group 1 assets would be sold or appropriated between TMD and ZXD to achieve a complete segregation of the Trust assets between them. On 24 December 2021, TMD issued a removal application seeking the removal of FDG as trustee of the Trust and the appointment of an independent trustee in its place (“the removal proceedings”). On 13 April 2023, trustee FDG issued a blessing application (an application seeking the approval of the Court) for the taking of various steps involving the transfer of Group 1 and Group 2 assets into a new trust (“the blessing proceedings”). Taking these steps would have the effect of removing TMD as a beneficiary of the Trust, allowing TMD and ZXD to part ways. The blessing proceedings were stayed pending the final determination of the removal proceedings. This appeal concerns the removal proceedings. This appeal arises out of two orders made by the Eastern Caribbean Court of Appeal. As a result of these orders, FDG’s removal as a trustee and related protective relief have been stayed or refused pending the determination of appeals by the respondents of FDG’s removal as trustee (“the respondents’ appeals”). The respondents’ appeals have not been set down for hearing and TMD’s application for their expedition was refused. TMD appeals the orders on the basis that he has been left without any protection in respect of his interest in the assets of the Trust as a trust beneficiary.