Gardner v Wallace

In *Gardner v Wallace*, Dawson J of the High Court of Australia considered a dispute concerning the interpretation of a will. The primary issue before the Court was whether a specific bequest of shares in a company, which had undergone a share split prior to the testator's death, should be construed as referring to the original number of shares or the increased number of shares resulting from the split. The executor of the estate sought directions from the court regarding the distribution of these shares.

The central legal question was how to interpret the testator's intention in light of the subsequent share split. Specifically, the Court had to determine whether the bequest was specific and therefore limited to the exact number of shares held at the time of the will's execution, or if it was intended to encompass the testator's entire holding in that company at the time of death, irrespective of any changes in the number of shares due to corporate actions. This involved an examination of the principles of testamentary construction and the presumption against intestacy.

Dawson J reasoned that the testator's intention, as expressed in the will, must be given effect. Applying established principles of will interpretation, his Honour found that the bequest was specific, referring to the particular shares held by the testator at the time of making the will. The subsequent share split did not alter the nature of the bequest; rather, it increased the number of shares that comprised the specific bequest. Therefore, the beneficiary was entitled to the increased number of shares resulting from the split, as these represented the same underlying proprietary interest that the testator intended to bequeath. The Court ordered that the shares be distributed in accordance with this interpretation.