Dillon & Dillon

In the matter of *Dillon & Dillon*, Cronin J of the Family Court of Australia considered an application by the husband for the production of documents held by the trustees of certain family discretionary trusts. The wife, as a beneficiary of these trusts, objected to the production of these documents. The dispute centred on whether the husband was entitled to access trust documents that might be relevant to financial proceedings between the husband and wife.

The primary legal issue before the court was whether the subpoenaed parties, the trustees of the family discretionary trusts, were required to produce documents relating to the trusts, notwithstanding the wife's objection. This involved determining the extent to which trust documents, particularly those concerning beneficiaries' wishes and trustee deliberations, are discoverable in family law proceedings where a beneficiary is a party.

Cronin J reasoned that the wife's objection to the production of the documents was without merit. The court applied the principle that in family law proceedings, parties are generally entitled to discover documents relevant to the proceedings, even if those documents are held by third parties or relate to trusts in which a party is a beneficiary. The court found that the documents sought, including memoranda of wishes, minutes of trustee meetings, and correspondence, were relevant to the financial proceedings and that the wife's interest as a beneficiary did not create an absolute privilege against their disclosure. Consequently, the court dismissed the objection of the respondents.

The court ordered that the subpoenaed parties provide the specified trust documents to the solicitors for the husband as soon as practicable. The court also ordered that any applications for costs arising from these orders be made by written submission by a specified date, with responses to be filed shortly thereafter, and that such applications be determined in chambers.