Cantor Management Services P/L v Booth

Cantor Management Services Pty Ltd (Cantor) appealed to the Full Court of the Supreme Court of South Australia against a decision of a single judge. The dispute concerned the entitlement to a superannuation death benefit payable from a superannuation fund established by Cantor. The respondent, Ms Booth, was the former de facto partner of the deceased member of the fund.

The central legal issue before the Full Court was whether the deceased member's nomination of Ms Booth as the beneficiary of his death benefit was valid and binding on the trustee of the superannuation fund, Cantor. This involved determining the proper construction of the relevant trust deed and the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act), particularly concerning the trustee's discretion to pay death benefits and the effect of a binding nomination.

The Full Court held that the trust deed conferred a broad discretion on the trustee to determine the beneficiaries of death benefits, and that this discretion was not fettered by the deceased member's nomination. The Court reasoned that while a nomination could be a relevant consideration for the trustee, it did not create a legally enforceable right in the nominated beneficiary that compelled the trustee to pay the benefit in accordance with the nomination. The Court applied the principles established in cases concerning the nature of superannuation death benefits and the trustee's fiduciary duties, emphasizing that the ultimate decision rested with the trustee, acting in good faith and in accordance with the terms of the trust deed and the SIS Act.

The appeal was dismissed, and the decision of the primary judge was affirmed.