Jubilee Properties Pty Ltd v Parkview Farm Pty Ltd

The dispute between Jubilee Properties Pty Ltd and Parkview Farm Pty Ltd was heard by the Supreme Court of Queensland. Jubilee Properties, a minority unit holder in the trust, sought the removal of the trustee, alleging breaches of trust. These breaches included the misapplication of trust funds, causing the trust to provide a guarantee, and causing the trust to borrow at higher interest rates. Jubilee Properties also sought the winding up of the trust, arguing that the trustee's actions constituted breaches of trust. The court had to determine whether the trustee's actions indeed constituted breaches of trust, whether Jubilee Properties had standing to call for the winding up of the trust, and whether the trustee had the power to make amendments to the trust deed.

The court first assessed whether the trustee's actions amounted to breaches of trust. It found that the misapplication of trust funds and causing the trust to provide a guarantee were indeed breaches of trust. However, the court determined that causing the trust to borrow at higher interest rates did not necessarily constitute a breach of trust. The court then considered whether Jubilee Properties had standing to call for the winding up of the trust. It held that as a minority unit holder, Jubilee Properties did have the right to seek the winding up of the trust if it could demonstrate that the trustee's actions were in breach of trust. Additionally, the court examined the trust deed to ascertain whether the trustee had the power to make amendments. It concluded that the trustee did not have the power to make amendments that were inconsistent with the terms of the trust deed.

The court ruled that the trustee should be removed due to the breaches of trust. It also held that Jubilee Properties had standing to call for the winding up of the trust. Furthermore, the court determined that the trustee did not have the power to make amendments to the trust deed that were inconsistent with its terms. Consequently, the court ordered the removal of the trustee and the winding up of the trust. It further directed that the trust assets be distributed in accordance with the trust deed.