Kanjian Holdings No 1 Pty Ltd v Kanjian; Kanjian v Kanjian (No 3)

In the case of Kanjian Holdings No 1 Pty Ltd v Kanjian; Kanjian v Kanjian (No 3), the dispute involved multiple issues pertaining to family dynamics and business operations within a family company. The case was heard in the Supreme Court of New South Wales. The central issue was the admissibility of a recording of a conversation made without the parties' knowledge or consent, as well as claims of undue influence, estoppel, and breaches of fiduciary duty by trustees.

The court first examined the legality of the recording under the Surveillance Devices Act 2007 (NSW). It held that while the recording was made without consent, its probative value outweighed the undesirability of its admission, leading to its inclusion as evidence. Regarding undue influence, the court found that while there was evidence of undue influence in relation to one power of attorney, it was not established for other documents. The court also found that the eldest son had not successfully rebutted the presumption of undue influence. The court further examined the claim of estoppel by convention and found that the parties had indeed adopted a common assumption that the beneficiary would not call for a share transfer during his lifetime, thus establishing detrimental reliance. However, the court did not find an equitable estoppel because the detriment claimed was not sufficiently established.

The court also addressed the conduct of the trustees, finding that the director had not breached any duties nor had the trustee company been procured to breach its duties. Therefore, the court declined to remove the director.