Application of Macedonian Orthodox Community Church St Petka Inc

The application before the Court involved the Macedonian Orthodox Community Church St Petka Inc, which sought judicial advice regarding the settlement of proceedings against its former solicitors. The matter related to long-standing litigation concerning the custodianship of trust property, with the solicitors having secured their costs by way of a mortgage over the property in question. The primary issue before the Court was whether it was appropriate to provide judicial advice on the settlement of these proceedings, particularly in light of allegations that the solicitors had knowingly assisted the Association in breaching its duties as trustee.

The Court considered whether it was justified to give advice on the settlement, despite the allegations of wrongdoing. The Court held that the mere existence of allegations of a breach of trust did not preclude the provision of judicial advice. The Court emphasised that the role of judicial advice was not to determine whether a breach of trust had occurred, but rather to assess whether it would be reasonable for the trustee to proceed with the suggested settlement. The Court found that it was appropriate to advise the Association on the settlement, provided that the settlement sum was paid from the assets of the charitable trust and the Association was indemnified from those assets for the cost of the proceedings.

The Court also addressed the issue of whether an interlocutory restraining order remained in effect after the dismissal of the proceedings. The Court concluded that the dismissal order constituted a "further order" that brought to an end the operation of the interlocutory restraining order. The Court granted the Association's application for judicial advice, finding that it was justified in settling the proceedings, paying the settlement sum from the assets of the charitable trust and being indemnified from those assets for the cost of the proceedings.