Groote Eylandt Aboriginal Trust Inc v Deloitte, Touche Tohmatsu [No 2]

The Groote Eylandt Aboriginal Trust Inc took legal action against Deloitte, Touche Tohmatsu, and the dispute centred on the interpretation of the trust deed and the charitable nature of certain uses of the trust fund. The matter was heard in the Supreme Court of the Northern Territory of Australia. The primary issue before the court was to determine whether certain uses of the trust fund were indeed charitable purposes as defined by the Pemsel categories, and whether these purposes could be considered to benefit the public or a section of the public. Another issue was to establish whether the exclusion of non-residents from the benefits of the trust fund would affect the charitable status of the trust.

The court ruled that the trust deed should be interpreted in the same way as any other contract, by looking at the intention as revealed in the words used. The court noted that the trust was for the benefit, welfare, and advancement of the beneficiaries, which in this case were the traditional clans of Aboriginals residing in a particular area. The court held that Aboriginal clans were a section of the public for the purposes of charitable trusts and that there was nothing arbitrary or capricious about the membership of Aboriginal clans. The court further held that the exclusion of non-residents did not affect the charitable status of the trust, as the primary focus was on the benefit of the traditional clans residing in the area. The court also found that the trust satisfied the Pemsel requirements and could be considered charitable.