The Court approved the compromise of a mining royalty dispute on the basis that it was both beneficial and protective of the charitable trust's interests. [name withheld] held that the applicable test for judicial approval of a trustee's compromise is analogous to approval of settlements for persons under disability: whether the certainty of the compromised outcome is significantly outweighed by the uncertain prospect of obtaining more, taking into account the risk of obtaining less, with significant weight given to the opinions of the trustee's legal advisers. On the facts, the reduction in royalty rate from 1.16% to 1.0% was justified by the certainty and extension of the income stream, the absence of net loss to Aboriginal beneficiaries (as the reduction was redirected to the ALC serving overlapping beneficiaries), and the promotion of community harmony.
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