Hardie v Hanson

The High Court of Australia considered a dispute between Hardie and Hanson 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 significant change in its capital structure prior to the testator's death, should be construed as a gift of the original shares or the shares held at the time of death.

The Court was required to determine the proper construction of the testamentary disposition in light of the alterations to the company's share capital. Specifically, the legal question was whether the testator's intention, as expressed in the will, was to bequeath a specific number of shares in the original class, or to pass on whatever shares in that company the testator possessed at the time of their passing, irrespective of any changes in the company's share structure.

The Court reasoned that the testator's intention, as evidenced by the language of the will, was to pass on the shares held at the time of death. The principle applied was that a bequest of shares in a company should be interpreted as referring to the shares held by the testator at the time of their death, unless the will clearly indicates a contrary intention or a specific number of shares in a particular class that no longer exists. The Court found that the changes in the company's capital structure did not alter the fundamental nature of the testator's intended gift, which was to pass on their investment in that particular company.