McMahon v Aynsley

McMahon v Aynsley was an application for directions pursuant to s 96 of the Trusts Act 1973 (Qld) or, in the alternative, for an order authorising and conferring power on a trustee pursuant to s 94. Leslie William Aynsley, a World War II veteran, purchased a parcel of land on the Gold Coast and entered into a Joint Venture Agreement with GWM Properties Pty Ltd for its development. After Mr Aynsley lost capacity, Sean Patrick McMahon, who had been appointed as Mr Aynsley's attorney, continued to act on his behalf. The application related to a Sale Contract for the Land executed on 6 June 2022. The legal issues the Court needed to decide included whether the first applicant had the power to enter into the Sale Contract, whether the sale was permitted by the relevant legal instruments, and whether the applicant was justified in entering and performing the Sale Contract.

The Court found that the first applicant had the power to enter into the Sale Contract, perform the Sale Contract, and complete the transfer of the Land pursuant to the Sale Contract. The Court was satisfied that this conduct was permitted by the terms of the Joint Venture Trust, the Statutory Will, and the Joint Venture Agreement. The Court also found that entering and performing the Sale Contract was justified, as the applicant had obtained proper professional advice, followed appropriate marketing processes, and secured the agreement of the Joint Venture partner and primary beneficiaries of the Joint Venture Trust.

The Court ordered that the first applicant had the power to sell the Land on the terms contained in the Sale Contract, was permitted to sell the Land on those terms, and was justified in entering into and performing the Sale Contract. Additionally, the Court ordered that the costs of the first, second, and third applicants, as well as the costs of the eighth respondent up to and including 24 June 2022, were to be paid out of the assets of the Estate of Leslie William Aynsley.