F&F LLP Dispute Resolution Update October 2026

⚖️ Dispute Resolution in focus: key developments

The Guernsey disputes landscape continues to evolve through significant judicial decisions, procedural reform and increasing regulatory activity. Recent judgments of the Royal Court and Court of Appeal continue to shape Guernsey law across trusts, insolvency, regulatory enforcement and commercial disputes, providing important guidance for trustees, fiduciaries, businesses and private clients.

📈 Key trends in Guernsey litigation

Growth in Trust and Fiduciary Disputes – In Ashdown v Fraser & APIC Trustees Limited [2026] GCA 043, the Guernsey Court of Appeal confirmed that a handwritten declaration of trust made in 1994 constituted a valid present declaration of trust over shares held for two family trusts. The Court rejected arguments that the trust failed for uncertainty because the declaration did not expressly specify the proportions in which each trust was to benefit. Instead, the Court held that the shares were held equally between the two trusts, applying ordinary principles of construction and, alternatively, the equitable principle that “equality is equity”. The decision provides valuable guidance on trust construction, certainty of subject matter and the Court’s approach to informal trust documentation.

Practitioners are also continuing to monitor the proposed reforms to the Trusts (Guernsey) Law, 2007, which are expected to provide greater certainty regarding fiduciary duties, trustee powers, remuneration and limitation periods.

Rise in Insolvency and Restructuring Work – Insolvency and restructuring litigation remains a significant growth area, supported by the continued development of Guernsey’s insolvency framework and its role in cross-border asset recovery and enforcement proceedings.

A notable recent Court of Appeal judgment resulted in the forfeiture of more than US$15 million held in a Guernsey bank account, with the funds transferred to the States of Guernsey’s Seized Asset Fund. The decision reinforces Guernsey’s commitment to combatting financial crime and highlights the increasing importance of civil recovery, forfeiture and asset-tracing proceedings within the jurisdiction.

Regulatory enforcement remains an increasingly important area of contentious work for regulated businesses and fiduciaries. Recent Court of Appeal decisions have provided important clarification regarding the powers of the Guernsey Financial Services Commission and the scope of judicial oversight of regulatory decisions. In Pybus v The Guernsey Financial Services Commission [2026] GCA 065, the Court confirmed that the GFSC’s enforcement regime is compatible with Article 6 of the European Convention on Human Rights and clarified the Royal Court’s powers when dealing with regulatory appeals.

Businesses should expect increasing scrutiny in areas including financial services regulation, anti-money laundering compliance, governance and data protection.

🤝 Alternative dispute resolution

We are seeing a growing appetite for mediation, and the F&F LLP Dispute Resolution team is currently involved in a number of matters that are moving through the mediation process. For many clients, mediation offers the opportunity to reduce the cost and duration of disputes, achieve commercially pragmatic outcomes and focus on their business rather than ongoing litigation. Even where a full settlement is not achieved, mediation can often narrow the issues in dispute and create a clearer pathway towards resolution.

💻 Court modernisation

One of the most significant procedural developments is the continued modernisation of the Guernsey court system. The Royal Court of Guernsey is actively progressing digital court filing initiatives and reviewing the Royal Court Civil Rules, with potential reforms expected in relation to service, case management and the use of technology in litigation.

These developments are expected to improve efficiency, reduce delay and enhance access to justice for litigants.

💡 What this means for our clients

In the current environment, early strategic advice is more important than ever. Whether dealing with shareholder disputes, trust litigation, debt recovery, insolvency, professional negligence claims, regulatory investigations or contractual disputes, parties should seek advice at the earliest opportunity to protect their position and manage costs effectively.

The F&F LLP Litigation & Dispute Resolution Team headed by Robin Gist is available to advise on all aspects of contentious matters, court proceedings, mediation, arbitration and enforcement action.

For specialist advice, please contact the F&F LLP Dispute Resolution Team – Robin Gist, Richard Harrington, Rebekah Johnston, Aimee Brown, or Kirsty Hart.