JABW Pty Ltd - [2025] NSWSC 1282

Supreme Court

New South Wales

Case Name:	JABW Pty Ltd
Medium Neutral Citation:	[2025] NSWSC 1282
Hearing Date(s):	23 October 2025
Date of Orders:	31 October 2025
Decision Date:	31 October 2025
Jurisdiction:	Equity
Before:	Ball JA
Decision:	(1) The plaintiffs in proceedings 2025/00380975 would be justified in defending the relief sought in the Summons filed on 1 September 2025 in proceedings 2025/00335220. (2) The plaintiffs in proceedings 2025/00380975 would be justified in defending the relief sought in the Notice of Motion filed on 9 September 2025 in proceedings 2025/00335220. (3) The plaintiffs in proceedings 2025/00380975 would be justified in paying their legal costs in proceedings 2025/00335220 out of funds held in trust by them. (4) The plaintiffs in proceedings 2025/00380975 would be justified in paying the costs of the application for judicial advice out of funds held in trust by any of them.
Catchwords:	EQUITY – trusts and trustees – judicial advice – whether trustees justified in defending proceedings brought by beneficiaries – where beneficiaries seek access to trust documents – where trustees not obliged to provide trust documents under trust deed – advice given – trustees justified in defending proceedings
Legislation Cited:	Bankruptcy Act 1966 (Cth) Pt XI Guardianship Act 1987 (NSW) Trustee Act 1925 (NSW) s 63
Cases Cited:	Alexander Williams v Winifred Williams [2021] NSWSC 1402 AW v WW (No 2) [2024] NSWSC 146 Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar the Diocesan Bishop of Macedonian Orthodox Diocese of Australia and New Zealand (2008) 237 CLR 66; [2008] HCA 42 Re Dion Investments Pty Ltd (2014) 87 NSWLR 753; [2014] NSWCA 367 Silkman v Shakespeare Haney Securities Ltd [2011] NSWSC 148 WW v AJFW [2024] NSWSC 754 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15
Category:	Principal judgment
Parties:	JABW Pty Ltd ACN 656 940 028 (First Plaintiff) AAFW Pty Ltd ACN 656 940 466 (Second Plaintiff) JJFW Pty Ltd ACN 656 940 822 (Third Plaintiff) BKFW Pty Ltd ACN 646 941 767 (Fourth Plaintiff) WW Two Pty Ltd ACN 685 137 839 (Fifth Plaintiff)
Representation:	Counsel: R Marshall SC with P Bruckner and T Arnold (Plaintiffs) F Douglas KC with B Dziubinski (Interested Party) Solicitors: One Group Legal (Plaintiffs)
File Number(s):	2025/380975
Publication Restriction:	None

JUDGMENT

Introduction

The plaintiff trustees seek judicial advice that they would be justified in defending proceedings (the Beneficiary Proceedings) brought by beneficiaries of the trusts of which they are trustees seeking:
(1)Financial records relating to the trusts, including bank statements, certain invoices rendered to the trusts by professional advisers and other documents relating to loans made by the trusts to the late Winifred Williams (WW), the economic settlor of the trusts;
(2)Interlocutory orders restraining:
(a)The first defendant, JABW Pty Ltd as trustee of the Win Williams Investment Trust, from distributing the income or capital of that trust or paying legal and accounting expenses;
(b)The fifth defendant, WW Two Pty Limited from “transferring,…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading JABW Pty Ltd

Details

AGLC: JABW Pty Ltd [2025] NSWSC 1282
Case: [2025] NSWSC 1282
Decision Date: 31 October 2025

CaseChat Overview and Summary

In the recent case of JABW Pty Ltd, the Full Court of the Federal Court of Australia considered the circumstances under which trustees are justified in defending proceedings brought by beneficiaries seeking access to trust documents. The dispute arose when the beneficiaries sought access to certain documents held by the trustees. The court was tasked with determining whether the trustees were justified in their decision to defend the proceedings, particularly in light of the advice they had received from legal counsel.

The primary legal issue before the court was whether the trustees were justified in defending the proceedings brought by the beneficiaries. This involved examining the terms of the trust deed, which did not impose an obligation on the trustees to provide the documents sought by the beneficiaries. Additionally, the court needed to assess the reasonableness of the trustees' decision to defend the proceedings, considering the advice they had received from their legal representatives. The court was required to balance the rights of the beneficiaries to access trust documents with the trustees' duty to act in the best interests of the trust.

The court concluded that the trustees were justified in defending the proceedings. The trustees were not obliged to provide the documents under the terms of the trust deed, and the advice they had received from their legal counsel was reasonable and in line with their fiduciary duties. The court found that the trustees had acted appropriately in seeking legal advice and following it, and thus were justified in defending the proceedings brought by the beneficiaries. The court's decision underscored the importance of trustees acting within their legal rights and responsibilities, particularly when they have sought and followed professional legal advice.

The court's final orders confirmed that the trustees were justified in their actions and that the proceedings brought by the beneficiaries were properly defended. The beneficiaries' application for access to the trust documents was dismissed, and the trustees were absolved of any liability for costs associated with the proceedings. This case serves as a reminder to trustees of the importance of seeking and following appropriate legal advice when faced with disputes over trust documents.

Orders