In the matter of the Daquino Family Trust

The Daquino Family Trust brought an application for judicial advice in relation to a matter where it was the trustee and, potentially, a defendant. The application sought guidance on whether the trustees were justified in defending proceedings against them and whether they should assist other defendants. The court had to determine if the trustees' case was arguable enough to justify filing a defence and if it was appropriate for them to fund the defence of other defendants. The case was at an early stage, and the trustees had not provided any counsel's advice.

The legal issues before the court included whether the trustees were justified in filing a defence in their own right and if it was appropriate for them to fund the defence of other defendants. The court considered the position of the trustees and the early stage of the proceedings. The trustees had not provided any counsel's advice, but their case did not appear to be without merit. The court also needed to consider the appropriateness of the trustees funding the defence of other defendants, particularly given the potential conflict of interest.

The court found that the trustees would be justified in filing a defence in their own right. Although the trustees had not provided any counsel's advice, their case appeared not to be unarguable. The court considered that it would be appropriate for the trustees to take steps to protect their own interests in the proceedings. However, the court determined that it was not appropriate for the trustees to fund the defence of other defendants. This was due to the potential conflict of interest and the need to avoid any undue influence on their own decision-making. The court deferred further considerations regarding the funding of other defendants until the close of the pleadings.

The court granted the trustees permission to file a defence in their own right but did not allow them to fund the defence of other defendants. Further considerations on the funding of other defendants were deferred until the close of the pleadings. This outcome balanced the trustees' need to protect their own interests with the potential conflicts of interest that could arise from funding other defendants.