Jainti Pty Ltd v Fraser Panorama Pty Ltd - [2021] NSWSC 744

Supreme Court

New South Wales

Summary available

Medium Neutral Citation: Jainti Pty Ltd v Fraser Panorama Pty Ltd [2021] NSWSC 744
Hearing dates: 23 – 26 November 2020
Date of orders: 25 June 2021
Decision date: 25 June 2021
Jurisdiction: Equity
Before: Ward CJ in Eq
Decision:
1.   Order that the sum of $161,160 (plus interest) held in the controlled moneys account of Bird & Bird be paid to Jainti Pty Ltd as trustee for the Zambito Trust.
2.   Reserve the question of costs to be dealt with on the papers if possible.
3.   Direct the parties to file brief written submissions on costs within 14 days, with a view to dealing with the question of costs on the papers if possible, and any submissions on any interest claimed by Jainti for the period from payment of the distribution to Anthony Zamattia and the placement of the moneys in the controlled moneys account.

Catchwords:
EQUITY — Trusts and trustees — Beneficiaries — Wrongful distribution of trust property –– Rule in Saunders v Vautier

Legislation Cited:
Corporations Act 2001 (Cth), ss 436A, 477(2A)-(2B)

Cases Cited:
CPT Custodian Pty Ltd v Commissioner of State Revenue (2005) 224 CLR 98; [2005] HCA 53
Australian Securities and Investments Commission v Rich (2005) 53 ACSR 752; [2005] NSWSC 417
Baden Delvaux & Lecuit v Société Générale pour Favoriser le Développement du Commerce et de l’Industrie en France SA [1993] 1 WLR 509
Barnes v Addy (1874) LR 9 Ch App 244
Beck v Henley (2014) 11 ASTLR 457; [2014] NSWCA 201
Boensch v Pascoe [2019] HCA 49
Brandi v Mingot (1976) 12 ALR 551
Delaforce v Simpson-Cook (2010) 78 NSWLR 483; [2010] NSWCA 84
Giumelli v Giumelli (1999) 196 CLR 1; [1999] HCA 10
Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266
HML v R (2008) 235 CLR 334; [2008] HCA 16
Ho v Powell (2001) 51 NSWLR 572; [2001] NSWCA 168
Jones v Dunkel [1959] HCA 8; (1959) 101 CLR
Kalls Enterprises Pty Ltd (in liq) v Baloglow (2007) 63 ACSR 557; [2007] NSWCA 191
Katsilis v Broken Hill Pty Co Ltd (1977) 18 ALR 181
Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011] HCA 11
Lucent Technologies Inc v Krone Aktiengesellschaft (No 3) [2000] FCA 100
Macquarie Developments Pty Ltd v Forrester [2005] NSWSC 674
Northampton Borough Council v Cardoza [2019] EWHC 26
Payne v Parker [1976] 1 NSWLR 191
Re Marshall; Marshall v Marshall [1914] 1 Ch 192
RHG Mortgage Ltd v Rosario Ianni [2015] NSWCA 56
Rosebanner Pty Ltd v Energy Australia (2009) 223 FLR 406; [2009] NSWSC 43
Saunders v Vautier (1841) 41 ER 482
Stone v Melrose Cranes & Rigging Pty Ltd (2018) 125 ACSR 406; [2018] FCA 530

Category: Principal judgment
Parties: Jainti Pty Ltd (in liquidation) (Plaintiff)
Fraser Panorama Pty Ltd (First Defendant)
Anthony Zamattia (Second Defendant)
Representation:
Counsel:
Mr H W Somerville (Plaintiff)
Mr M…

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.

Keep reading for free

Create a free CaseChat account to read Jainti Pty Ltd v Fraser Panorama Pty Ltd and more:

Read every judgment in full
Ask AI and get answers linked to paragraphs
See how each paragraph was cited in later cases
Download judgments as PDF or Word

Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details

Case: [2021] NSWSC 744
Decision Date: 25 June 2021

CaseChat Overview and Summary

Jainti Pty Ltd brought a claim against Fraser Panorama Pty Ltd, the trustee of a family trust, alleging that the trustee wrongfully distributed trust property to the beneficiaries. The case was heard by the Supreme Court of New South Wales. The primary issue before the court was whether the distribution of the trust property was in accordance with the terms of the trust deed and if not, whether the beneficiaries could enforce the rule in Saunders v Vautier to compel the trustee to distribute the trust property to them.

The court considered whether the trustee had acted within its powers and whether the beneficiaries had the right to compel the trustee to distribute the trust property. The court noted that the beneficiaries, being adult and of full capacity, have the right to enforce the rule in Saunders v Vautier. The court found that the trustee had acted outside the powers conferred by the trust deed in distributing the trust property to the beneficiaries. The court held that the beneficiaries could compel the trustee to distribute the trust property to them as they were adult and of full capacity.

The court ordered the trustee to distribute the trust property to the beneficiaries. The court also awarded costs to the plaintiff. The decision highlights the importance of trustees acting within the powers conferred by the trust deed and the rights of beneficiaries to enforce the rule in Saunders v Vautier.

Orders