Case update - righting the wrong: mistake and hastings-bass in the Isle of Man

How should trustees deal with mistakes that they or their predecessors have made?

This is a question of sometimes acute practical importance to trustees but the law does not always allow them the freedom of manoeuvre they once had. In particular, the English Supreme Court’s decision in Pitt v Holt, Futter v Futter [2013] 2 AC 108 (Pitt and Futter) fundamentally altered the options available to trustees of English law trusts and continues to make waves offshore.

The latest jurisdiction to produce a notable judgment dealing with the issues raised in that case is the Isle of Man. In a judgment delivered on 30 June 2016 in the case of AB v CD, His Honour the Deemster Doyle of the High Court of Justice of the Isle of Man made some important observations about the application under Manx law of the rule in Hastings-Bass (as modified by Pitt and Futter) and the Manx courts’ jurisdiction to set aside a voluntary transaction on the ground of mistake.

To read the full publication, which examines the case and summarises the approach of the Manx courts (and considers the likely impact of that approach), please download the PDF.