Legal action between a group of pilots and Sovereign Trust (Guernsey) Limited has hit the courtroom with the case being heard in Guernsey this week.
Arguments from Ogier, representing the pilots, were heard on the first day in court, with the Plaintiffs laying out their stall, ready for rebuttal from Sovereign.
The limited company is contesting the courtroom challenge from a group of pilots, who claim the firm mismanaged their money.
The business has said it “strongly denies the allegations” and will defend itself.
The pilots were all based in Dubai, with the Trust Fund essentially acting as their financial safety net if they faced losing their licence to fly due to medical reasons.
Sovereign acquired the trust in 2015.
In court, Ogier claimed that despite warning signs from official reports, the firm refused to take any action to steady their ship, and instead continued operating even whilst knowingly losing money each and every month.
In the opening claims from the Plaintiffs, heard yesterday, it was alleged that Sovereign “ignored” expert reports on the fund’s efficacy and warning signs that not enough cash was flowing in to sustain it.
They accused Sovereign of intentionally slowing down the court process, drawing out the case to increase the costs on those taking the company to court. Lawyers for the plaintiffs claimed they were using this as a “tactic”.
The company is facing allegations of negligence, as well as breach of duty. The pilot’s claim is built on the idea that Sovereign “mishandled” the contribution rates, and continued utilising and implementing “unnecessary benefits”.
They also claim the fund was underfunded, with accusations the firm “went to sea, knowing they had a hole in the boat”.
The case is expected to continue throughout the week.
Sovereign denies the charges.
More to follow…