Krnjulac v Lincu

The case of *Krnjulac v Lincu* involved an appeal to the New South Wales Court of Appeal concerning findings made by a primary judge regarding a breach of trust and the liability of volunteers. The dispute centred on interests in land identified as "church land," where the appellants were found to hold their interests on trust for the trustees of the Nazarene Church.

The Court of Appeal was required to determine whether the primary judge's findings had gone beyond the case pleaded at trial, thereby potentially infringing the rules of natural justice. Additionally, the court considered the equitable principles relating to the liability of volunteers to account for trust property acquired in breach of trust.

The Court of Appeal allowed the appeal, setting aside certain orders of the primary judge. It declared that the appellants and a fifth respondent held their interests in the church land on trust for the trustees of the Nazarene Church. The court ordered the appellants and the fifth respondent to execute transfers of their interests to the trustees, deliver up possession of the land, and for the fifth respondent to account for the use of the title and indemnify the trustees against claims by the mortgagee. Judgment was entered against the fifth respondent for the outstanding mortgage amount, and he was restrained from dealing with assets in Australia. The court also made orders regarding the costs of the proceedings.