Ashton v Pratt

The appeal concerned a dispute between the appellant, Ms Ashton, and the estate of a deceased, Mr Pratt, regarding an alleged promise by Mr Pratt to create trusts for the benefit of Ms Ashton's children. The primary judge had found that Ms Ashton had settled this claim, among others, during Mr Pratt's lifetime. Ms Ashton sought to challenge this finding on appeal. The appeal was heard by Bathurst CJ, McColl and Barrett JJA of the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the deceased's grandchildren, Indra Heslop-Blochowiak and Xavier Connor Heslop-Kelly, should be joined as parties to the appeal. This question arose because the grandchildren were potential beneficiaries of the trusts Mr Pratt had allegedly promised to create, and their interests could be directly affected by the relief sought by Ms Ashton. A further issue was whether Ms Ashton could adequately represent the interests of the grandchildren, particularly in light of arguments that she might have breached fiduciary duties as a trustee of a chose in action held for their benefit if the settlement was effective.

The Court reasoned that the grandchildren were directly affected by the relief sought by the appellant, as the outcome of the appeal could determine whether they would receive the benefit of the promised trusts. Consequently, the Court considered it necessary for them to be joined as parties to ensure their interests were properly represented. The Court also granted leave for the grandchildren to file a notice of cross-appeal and for the appellant to amend her notice of appeal to address matters raised in the cross-appeal. Directions were given for the filing of further pleadings and evidence, and the proceedings were stood over for further directions.