Groch v Knights

The case of Groch v Knights involved the legal dispute between the parties over the sale of jointly owned property. The primary issue was the refusal by one co-owner, Knights, to appoint trustees for the sale of the property, which was sought by Groch. The case was heard in the Supreme Court of New South Wales, which was tasked with determining whether the refusal to appoint trustees was justified and whether any hardship or unfairness could be a basis for refusal.

The legal issues before the court included whether the refusal to appoint trustees for sale could be justified on the basis of hardship or unfairness, and whether the power to appoint trustees under the Conveyancing Act 1919 (NSW), section 66G, could be exercised before the question of accounting between co-owners was determined. The court also needed to consider the principles governing the appointment of trustees for sale and the resolution of incidental questions about beneficiaries’ entitlements following an order for sale.

The court found that the refusal to appoint trustees was not justified on the basis of hardship or unfairness, as these were not permissible considerations under section 66G. The court emphasised that the power to appoint trustees for sale could be exercised before any accounting between co-owners was determined. The court also clarified that any incidental questions about beneficiaries’ entitlements could be determined under the general law or section 66G(6). The court held that the application for the appointment of trustees should be granted, as the refusal was not based on valid grounds.

The final orders of the court mandated the appointment of trustees for the sale of the jointly owned property, with the terms and conditions of the sale to be determined by the trustees. The court's decision underscored the importance of adhering to statutory provisions and the limited scope of discretionary considerations in such applications.