Attorney-General (NSW) v Perpetual Trustee Co Ltd

The Attorney-General of New South Wales brought an action against Perpetual Trustee Company Ltd, seeking a declaration that certain provisions of the will of the late Sir John Sulman were invalid. The dispute concerned the proper construction and validity of a trust created by the will for the benefit of the "people of New South Wales" and the establishment of a public art gallery. The case was heard by the High Court of Australia, with judgment delivered by Dixon, McTiernan, Webb, Fullagar, and Kitto JJ, and a dissenting judgment from Williams J.

The central legal issues before the High Court were whether the trust created by the will was a valid charitable trust, and if so, whether it was sufficiently defined to be carried into execution by the court. Specifically, the court had to consider whether the objects of the trust, namely the benefit of the "people of New South Wales" and the establishment of a public art gallery, were ascertainable and charitable in nature. The validity of the delegation of power to the trustees to select the specific purposes for which the funds were to be applied was also a key question.

The majority of the High Court held that the trust was a valid charitable trust. They reasoned that the advancement of art and the provision of facilities for its exhibition were purposes beneficial to the public and thus charitable. The court found that while the beneficiaries were described broadly as the "people of New South Wales," this was a sufficiently defined class for the purposes of a charitable trust. Furthermore, the court determined that the trustees' power to select specific charitable purposes within the broader object of establishing an art gallery was a valid exercise of discretion, provided those purposes remained charitable. The dissenting judgment, however, found the trust to be void for uncertainty.

The High Court made declarations that the trust was a valid charitable trust and that the trustees were entitled to apply the trust funds for the purposes specified in the will, subject to the terms of the trust.