Hicks v Mater Misericordiae Ltd

In Hicks v Mater Misericordiae Ltd, the court dealt with a dispute over the interpretation of a testamentary disposition and the validity of a charitable gift. The will in question left the residuary estate to a public hospital for certain charitable purposes. The hospital in question, the Mater Children's Hospital, ceased to exist after the testator's death, and the functions of the hospital were transferred to another institution, the Lady Cilento Children's Hospital. The primary legal issue was whether the gift intended for the Mater Children's Hospital could be applied to the Lady Cilento Children's Hospital under a cy-près order or if it should be directed to the hospital's former operator, Mater Misericordiae Limited. The court also had to determine the admissibility and use of extrinsic evidence in interpreting the will and whether the charitable purpose had failed due to the hospital's closure.

The court held that the gift was intended for the Mater Children's Hospital specifically, and not for the hospital's operator, Mater Misericordiae Limited. It ruled that extrinsic evidence could be admitted to clarify the testator's intent regarding the specific institution. The court found that the Lady Cilento Children's Hospital, which was established to take over the functions of the Mater Children's Hospital, was the most suitable institution to benefit from the bequest under a cy-près order. The court concluded that a cy-près order should be made in favour of the Lady Cilento Children's Hospital as it best aligned with the testator's charitable intent. The court's decision was based on the nature of the charitable purpose set out in the will and the close alignment of the Lady Cilento Children's Hospital's objectives with those of the now-defunct Mater Children's Hospital. The court will hear further submissions regarding the form of any orders, including the identity of a proposed trustee and the continuing role of the executors.