Hack & Ors v. Kettering Pty Ltd & Ors

The plaintiffs, Hack and others, filed a claim against Kettering Pty Ltd and others, asserting breaches of trust and seeking relief related to the distribution of trust assets. The matter was heard in the Supreme Court of New South Wales. The central dispute centred on whether the trust deed allowed for the distribution of capital to beneficiaries only upon the trust's termination.

The court was tasked with determining the legality of the distribution of trust capital to beneficiaries before the trust's dissolution. Specifically, it had to interpret the trust deed to ascertain if it permitted such distributions and whether the trustees had correctly exercised their powers. The plaintiffs argued that the trustees had mismanaged the trust by distributing capital prematurely, while the defendants claimed that the trust deed explicitly allowed such distributions.

The court held that the trust deed did not authorise the distribution of capital to beneficiaries before the trust's termination. It found that the relevant provisions of the deed required the trustees to distribute capital only upon the trust's conclusion. Consequently, the trustees' actions in distributing capital prematurely constituted a breach of trust. The court ruled that the plaintiffs' claims concerning these premature distributions were unfounded, as the trust deed did not support such actions. Therefore, the court ordered the plaintiffs to pay the defendants' costs associated with the application to amend the statement of claim and the hearing itself.