Justice Spence of the Superior Court of Ontario has ruled that Sentry Select Commodities Income Trust (TSX:SSJ.UN) should have paid out an additional 43.5¢ per unit to two unitholders who redeemed their units in the trust on Aug. 31, 2006. The judge also awarded those unitholders interest.

Sentry Select Capitial Corp. says it is reviewing the decision to determine whether to appeal.

Sentry Select had caused the trust after Aug. 31, 2006 to dispose of a pro rata portion of its assets held on such date to determine the Net Realized Proceeds per Unit to which the redeeming unitholders were entitled. The trust has paid out $9.875 per unit to the redeeming unitholders on that basis. The plaintiffs claimed that, because the trust had not disposed of the assets prior to Aug. 31, 2006, they were entitled to the net asset value per unit on such date, which was $10.31.

If the judge’s decision is upheld on appeal or if Sentry Select decides not to appeal, Sentry Select will cause the trust to make the same payments to the other unitholders who redeemed on Aug. 31, 2006. As an aggregate of 4,702,537 units were redeemed on that date, the trust would be liable in these circumstances to pay out an aggregate of $2,045,604 plus interest. Sentry Select estimates that such payment, including interest to date, would reduce the net asset value per unit of the trust by approximately 17¢.