Ian Hammond (taken from Isssue No 4 – December 1997)
The extent to which trustees may limit their liability for negligence, dishonesty or fraud is an issue which has been the subject of much recent debate.
1 Midland Bank Trustees (Jersey) Limited -v- Federated Pensions Services Limited[1996] Pensions Law Reports 179
(a) Background
Federated was the sole trustee of a pension scheme for nursing staff in Jersey, the rules of which contained the following exclusion:
`The trustee shall be indemnified against all liabilities incurred by it in the execution of the trusts hereof and the management and administration of the scheme and shall have a lien on the fund for such indemnity and shall not be liable for anything other than a breach of trust knowingly and wilfully committed`.
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