Mullick as Executor and trustee of the estate of the late Veselinka Lucic aka Veselinka Saikali (deceased) v Saikali

The applicant, Mullick, as executor and trustee of the estate of the late Veselinka Lucic, sought to be substituted by the Trustee and Guardian of New South Wales. The dispute involved the termination of a trust and the distribution of funds held by the trustee. The application was made in the Supreme Court of New South Wales. The respondent, Saikali, sought to terminate the trust and have the funds distributed to the beneficiaries. The court had to determine whether the trustee acted unreasonably by not seeking judicial advice in the circumstances.

The key legal issue before the court was whether the trustee's failure to obtain judicial advice amounted to unreasonable conduct. The applicant argued that the trustee's actions were unreasonable, while the respondent contended that the trustee's decision was not unreasonable and that the court should not interfere with the trustee's discretion. The court had to consider the relevant statutory framework and case law to determine the appropriate course of action.

The court found that the trustee's failure to seek judicial advice was unreasonable, particularly in light of the complex nature of the trust and the potential consequences of the trustee's decision. The court held that the trustee's conduct was unreasonable and that the court should exercise its discretion to substitute the trustee. The court noted that the trustee's decision to not seek advice was particularly concerning given the potential impact on the beneficiaries and the importance of ensuring that the trust was administered in accordance with the settlor's intentions. The court found that the Trustee and Guardian was an appropriate substitute trustee and granted the application accordingly.

The court ordered that the Trustee and Guardian be substituted as trustee of the estate, with Mullick ceasing to act as trustee. The court also directed that the Trustee and Guardian take all necessary steps to distribute the trust funds to the beneficiaries in accordance with the trust deed and the court's directions. The court noted that the substitution of the trustee was necessary to ensure that the trust was administered properly and in accordance with the settlor's intentions.