Spread Trustee Company Ltd v Hutcheson

EXEMPTING A trustee for gross negligenceCan an exemption clause exclude a trustee’s liability for gross negligence? That was the question which the Privy Council was required to consider in this appeal from the Guernsey Courts. Guernsey has developed substantial activities in finance and trusts, and now has legislation (the Trusts (Guernsey) Law 2007) creating a legal framework for this business. The legislative framework was first introduced in 1989, and amended in 1990. The effect of an exemption clause had never been considered in litigation in Guernsey prior to the introduction of legislation.