Limited recourse? Is there an alternative statutory approach to priority of liens and payment of trustees’ creditors?

Abstract

Abstract Equity Trust (Jersey) Limited v Halabi held that successive trustees’ liens rank pari passu, rather than by priority in time. It held this to be the English law, Jersey law being presumed the same unless established otherwise. However, does Jersey law already contain its own provision for pari passu ranking of trustees’ liens and indemnities? This article considers Article 32 of the Trusts (Jersey) Law 1984, as well as similar provisions in Guernsey and the BVI, which appear to have provided for pari passu satisfaction not only of trustees’ creditors, but also trustees’ liens to secure such satisfaction, all along.