McNee v Lachlan McNee Family Maintenance Pty Ltd

In the matter of McNee v Lachlan McNee Family Maintenance Pty Ltd, the dispute arose concerning the administration of a trust and the potential removal of a trustee, as well as the variation of the trust deed. The case was heard in the Supreme Court of Victoria. The dispute involved the Lachlan McNee Family Maintenance Trust, with the petitioner seeking the removal of the current trustee and the variation of the trust deed to replace the appointor. The petitioner argued that the current trustee had acted in breach of trust and had a conflict of interest, while also asserting that the current appointor, who had appointed the trustee, was the guiding mind behind the trustee and had similarly acted in breach of trust.

The primary legal issues before the court were whether the current trustee should be removed and a new trustee appointed, and whether the trust deed should be varied to replace the current appointor. The petitioner contended that the current trustee should be removed due to their breach of trust and conflict of interest, and that the trust deed should be varied to replace the appointor as the court lacked confidence in their ability to fulfil their role under the trust deed. The respondent argued against both the removal of the trustee and the variation of the trust deed, asserting that there were no grounds for such actions.

The court found that the petitioner had demonstrated sufficient grounds for the removal of the current trustee, as the trustee had acted in breach of trust and had a conflict of interest. The court also found that the petitioner had demonstrated a lack of confidence in the current appointor's ability to fulfil their role under the trust deed, as the appointor was the guiding mind behind the trustee who had acted in breach of trust. The court cited the Trustee Act 1958 and the decision in Miller v Cameron to support its decision to remove the trustee and vary the trust deed. The court ordered that the current trustee be removed and a new trustee appointed, and that the trust deed be varied to replace the current appointor with a new appointor.