Jainti Pty Ltd v Fraser Panorama Pty Ltd

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.