Manglicmot v Commonwealth Bank Officers Superannuation Corporation Pty Ltd

The appeal concerned a dispute between Mr. Manglicmot and the Commonwealth Bank Officers Superannuation Corporation Pty Ltd, the trustee of a superannuation fund. Mr. Manglicmot alleged that the trustee had breached its duties by entering into a new insurance policy for total and permanent disablement (TPD) benefits that provided lesser benefits than the previous policy. The case was heard in the Court of Appeal of New South Wales.

The central legal issues before the court were whether the new TPD policy provided lesser benefits than the old policy, and if so, whether the trustee had breached its fiduciary duties or its statutory obligations under the *Superannuation Industry (Supervision) Act 1993* (Cth) by entering into the new policy. Mr. Manglicmot also contended that he was entitled to TPD benefits under the old policy, which he claimed would have been available to him even if he was fit for part-time work, and that the new policy removed this entitlement.

The Court of Appeal found that there was no consistent construction or application of the wording of the old policy that supported Mr. Manglicmot's assertion that it provided TPD benefits if he was fit for part-time work. The court held that the old policy did not provide TPD benefits in such circumstances. Consequently, the court determined that the new policy did not provide lesser TPD benefits than the old policy, meaning there was no breach of duty by the trustee on this ground. Furthermore, the court found no meaningful challenge to the trial judge's finding that the trustee had not erred in exercising its discretionary power when entering into the new policy. The court also noted that the statutory covenants under the *Superannuation Industry (Supervision) Act* did not materially add to the trustee's general law duties. Finally, Mr. Manglicmot was not entitled to TPD benefits as his unemployment was not shown to be due to sickness, illness, or injury.

The appeal was dismissed, and Mr. Manglicmot was ordered to pay the costs of the Commonwealth Bank Officers Superannuation Corporation Pty Ltd.