Alexander v Perpetual Trustee Company Limited

The case of Alexander v Perpetual Trustee Company Limited concerned a dispute regarding the interpretation of a trust instrument, specifically whether the trustee was entitled to seek judicial advice on the matter. The matter was heard in the Supreme Court of New South Wales. The plaintiff, Alexander, argued that the trustee, Perpetual Trustee Company Limited, had acted improperly by seeking judicial advice on the interpretation of the trust instrument.

The legal issue before the court was whether the trustee was entitled to seek judicial advice on the interpretation of the trust instrument, particularly when there were competing opinions among experts. The court had to determine the proper approach to be taken when a trustee seeks judicial advice on such matters.

In delivering the judgment, the court considered the relevant provisions of the Trustee Act and relevant case law. The court held that the trustee was entitled to seek judicial advice on the interpretation of the trust instrument, provided that the advice was sought in good faith and for the proper purpose of carrying out the trustee's duties. The court also noted that it was appropriate to give advice in cases where there were competing opinions among experts, as it would assist the trustee in making an informed decision. The court emphasised that the advice should be sought only when it is necessary and appropriate, and not as a substitute for the trustee's own judgment.

The court's decision clarified the proper approach to be taken when a trustee seeks judicial advice on the interpretation of a trust instrument, particularly in cases where there are competing opinions among experts. The court held that it was appropriate for the trustee to seek such advice in good faith and for the proper purpose of carrying out their duties. The court's decision provides guidance to trustees on when and how to seek judicial advice on the interpretation of trust instruments.