Alexander (trading as Minter Ellison) v Perpetual Trustees WA Ltd

Alexander (trading as Minter Ellison) appealed to the Supreme Court of New South Wales, Court of Appeal, against a decision concerning a dispute with Perpetual Trustees WA Ltd. The underlying dispute involved allegations of breach of trust and negligence, with Minter Ellison seeking contribution from Perpetual Trustees.

The Court of Appeal was required to determine whether Minter Ellison's conduct, which Perpetual Trustees alleged constituted a breach of trust, was undertaken in good faith and with an honest belief that it was in the best interests of the beneficiaries. Additionally, the court had to consider whether the obligations Perpetual Trustees sought contribution for were "of the same nature and the same extent" as those owed by Minter Ellison, a requirement for a right of contribution in negligence.

The Court of Appeal found that Minter Ellison's conduct did not meet the standard of good faith required for a trustee. The judges reasoned that an honest belief that the conduct was in the beneficiaries' interests was a necessary but not sufficient condition; the belief itself must have been reasonably held. Furthermore, the court held that the obligations were not of the same nature and extent, meaning the claim for contribution in negligence failed.

Consequently, the appeal was dismissed, and Minter Ellison was ordered to pay the costs of the appeal.