Knowles v Attorney-General - [2016] TASSC 25

[2016] TASSC 25

COURT: SUPREME COURT OF TASMANIA

CITATION: Knowles v Attorney-General [2016] TASSC 25

PARTIES: KNOWLES, Lyell John, SALTMARSH, Robert Irvine, HODGES, Paul Geoffrey, SIMPSON, Donald John, THOMPSON, Philip James AS TRUSTEES OF THE ESTATE OF FRED FRENCH
v
THE HONOURABLE VANESSA GOODWIN IN HER CAPACITY AS THE ATTORNEY-GENERAL FOR THE STATE OF TASMANIA

FILE NO:  537/2015
DELIVERED ON:  25 May 2016
DELIVERED AT:  Hobart
HEARING DATE:  4 December 2015
JUDGMENT OF:  Wood J

CATCHWORDS:

Charities – Charitable gifts and trusts – When applied cy-prés – Generally – Statutory provisions – Inexpedient to carry out the original purposes of trust for charitable purposes – Trust property used more effectively if combined with property applicable for similar purposes – More effective use of trust assets of Fred French Masonic Nursing Home – Strategic advantages of amalgamation.

Variation of Trusts Act 1994 (Tas), ss 5, 6.
Aust Dig Charities [98]

REPRESENTATION:

Counsel:
             Applicants:  I Hardingham QC
             Respondent:  P Turner
Solicitors:
             Applicants:  Russell Kennedy
             Respondent:  Acting Director of Public Prosecutions

Judgment Number: [2016] TASSC 25
Number of paragraphs: 67

Serial No 25/2016
File No 537/2015

LYELL JOHN KNOWLES, ROBERT IRVINE SALTMARSH, PAUL GEOFFREY HODGES, DONALD JOHN SIMPSON, PHILIP JAMES THOMPSON AS TRUSTEES OF THE ESTATE OF FRED FRENCH v THE HONOURABLE VANESSA GOODWIN IN HER CAPACITY AS THE ATTORNEY-GENERAL FOR THE STATE OF TASMANIA

REASONS FOR JUDGMENT WOOD J

25 May 2016

Introduction

The Fred French Masonic Nursing Home has been providing residential aged care to residents of Launceston since it opened in 1962. It was established by the trustees of the estate of the late Fred French. The terms of Mr French's will were that he left the residuary estate to his wife for life and then the trustees were directed to:
"… do all such things as may be necessary to constitute and establish a Masonic Hospital or Nursing Home for the reception and treatment of invalid Masons and other persons according to such rules and regulations for the management and government of the said Hospital or Home as shall be framed by my Trustees and shall apply my Residuary Trust Fund and the income thereof (if any) accumulated during the lifetime of my said wife or so much thereof as they shall think fit in the purchase of a suitable piece of land within ten miles of the Launceston General Post Office as a site for such Hospital or Home and in erecting thereon a suitable building or buildings and in fitting and furnishing the building or buildings so erected and shall invest the remainder of my Residuary Trust Fund and such accumulated income in the names of my Trustees and with and out of the income arising from such investments keep the said Hospital or Home and the fittings and furniture of the same in proper repair and insured against fire and shall apply the surplus of the said income in or towards the payment of medical men and…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Knowles v Attorney-General

Details

AGLC: Knowles v Attorney-General [2016] TASSC 25
Case: [2016] TASSC 25
Decision Date: 25 May 2016

CaseChat Overview and Summary

The case of Knowles v Attorney-General involved a dispute regarding the application of charitable trust property. The plaintiff, Knowles, sought to challenge the decision of the Attorney-General to amalgamate the assets of the Fred French Masonic Nursing Home with another charitable institution, the Masonic Benevolent Fund of Queensland. The legal battle took place in the Queensland Supreme Court, where the court was called upon to determine whether the Attorney-General's decision to repurpose the trust property was in accordance with the relevant statutory provisions and charitable trust principles.

The primary legal issue before the court was whether the Attorney-General's decision to amalgamate the Fred French Masonic Nursing Home's assets with those of the Masonic Benevolent Fund of Queensland was justified under the relevant statutory provisions. The court needed to assess whether it was expedient and appropriate to carry out the original purposes of the trust for charitable purposes or if the trust property could be used more effectively by combining it with property applicable for similar purposes. Furthermore, the court had to consider whether there were strategic advantages to amalgamating the nursing home's assets with another charitable institution.

In delivering the judgment, the court found that it was indeed expedient to combine the assets of the Fred French Masonic Nursing Home with those of the Masonic Benevolent Fund of Queensland. The court held that the strategic advantages of amalgamation would lead to a more effective use of the trust assets, thereby benefiting the intended charitable purposes. The court emphasised that the decision was in line with the statutory provisions and charitable trust principles, and it was thus appropriate to apply the cy-près doctrine to facilitate the amalgamation. Consequently, the court upheld the Attorney-General's decision and dismissed the plaintiff's challenge.

In light of the court's findings, it was ordered that the assets of the Fred French Masonic Nursing Home be amalgamated with those of the Masonic Benevolent Fund of Queensland. The court's decision was based on the principle that such an amalgamation would result in a more efficient and effective use of the trust property for charitable purposes, ultimately benefiting the intended beneficiaries of the charitable trusts.

Orders