James Cook University v Townsville City Council

James Cook University sought various declarations and directions from the Court regarding land held under a Deed of Covenant. The Deed of Covenant established a charitable trust, and the university proposed development projects for the trust land. The university sought declarations regarding the validity of the terms of the Deed and the power to sell the land and enter into a long-term lease. The court had to determine the validity of the charitable trust established by the Deed, whether the university had the power to lease the land, and whether the university had the power to sell the land or enter into a long-term lease.

The court examined the Deed of Covenant and concluded that it established a charitable trust. The court found that the university had the power to lease the land for the uses and purposes specified in the affidavit of Alan James Carpenter filed on 4 May 2011. The court also found that the university had the power to grant leases for the specified uses and purposes over the land for a period exceeding the terms specified in the Trusts Act 1973 but for no longer than a term of 50 years.

The court ordered that upon its true construction the Deed of Covenant executed on 20 December 1963 established a charitable trust. The court also ordered that the university may lease the land or any part of the land for the uses and purposes specified in the affidavit of Alan James Carpenter filed on 4 May 2011, upon the condition that the university applies the rents and profits derived from leasing of the land to conduct an educational institution at university level conformably to conceptions from time to time currently adopted as fit and proper for a university education. The court further ordered that the university has power to grant leases for the uses and purposes specified in the affidavit of Alan James Carpenter filed on 4 May 2011 over the Land for a period exceeding the terms specified in section 32(1)(e) and 32(3)(a) of the Trusts Act 1973 but for no longer than a term of 50 years.