Jeffrey Laurence Herbert as trustee for the Blenkinsop Family Trust as trustee for the Blenkinsop Family Trust No 2 v Blenkinsop [No 2]

The matter under consideration involved Jeffrey Laurence Herbert, acting as trustee for two distinct family trusts, and Blenkinsop, a beneficiary of those trusts. The primary dispute centred around the trustee's decisions concerning the settlement of claims against the trust properties and the subsequent allocation of settlement sums between two trust funds. The case was heard in the Supreme Court of New South Wales.

The court was tasked with determining whether the trustee had given full consideration to the claims against the trust properties and whether proper advice was sought and followed in making decisions regarding the settlement. Additionally, the court had to decide how the settlement sum should be allocated between the two trust funds, ensuring that the trustee's actions were in the best interests of the beneficiaries and in accordance with the trust deeds.

The court examined the trustee's actions meticulously, evaluating the extent to which the trustee considered the claims and sought advice before proceeding with the settlement. It was crucial to establish whether the trustee acted prudently and whether the advice received was adequate and appropriate. Furthermore, the court had to weigh the factors influencing the allocation of the settlement sum, ensuring that the trustee's decisions were fair and equitable.

The court found that the trustee had not adequately considered the claims against the trust properties and had not sought proper advice in making decisions regarding the settlement. The court also determined that the allocation of the settlement sum between the two trust funds was not appropriately justified. Consequently, the court provided guidance to the trustee on the necessary steps to rectify these issues, ensuring future compliance with trust obligations.