PERPETUAL TRUSTEE COMPANY LTD -v- CHEYNE [2011] WASC 225

Jurisdiction:	SUPREME COURT OF WESTERN AUSTRALIA	Citation No:	[2011] WASC 225
Case No:	CIV:2555/2011	Heard:	25 AUGUST 2011
Coram:	EDELMAN J	Delivered:	29/08/11
No of pages:	21	Judgment Part:	1 of 1
Result:	Directions given that the proposed transfer is within the terms of the Court Compensation Trust
Category:	A
PDF Version

Parties:	PERPETUAL TRUSTEE COMPANY LTD (as Trustee for the Michael Scott Cheyne Compensation Trust) MICHAEL SCOTT CHEYNE (by his Guardian Ad Litem HELEN RITA LLOYD)
Catchwords:	Trusts and trustees Court ordered trust of judgment sum Meaning of 'advancement' and 'benefit' Whether disposition of trust fund capital for superannuation policy to be held directly for beneficiary, by his limited administrator, is within terms of trust Trusts and trustees Section 17 Trustees Act 1962 (WA) Meaning of 'investment' Whether disposition of trust fund capital for superannuation policy to be held directly for beneficiary, by his limited administrator, is an investment Practice and Procedure Parens patriae power of the court Whether parens patriae power authorises the disposition of trust funds sought
Legislation:	Guardianship and Administration Act 1990 (WA) Supreme Court Act 1935 (WA) Trustees Act 1962 (WA)
Case References:	Beverley's Case of Non Compos Mentis (1603) 4 Co Rep 123b, 126; (1603) 76 ER 1118 Cadwallender v The Public Trustee [2003] WASC 72 Carseldine v Director of Department of Children's Services (1974) 133 CLR 345 Clay v Clay [1999] WASCA 8; (1999) 20 WAR 427 Department of Health and Community Services (NT) v JWB & SMB (Marion's Case) (1992) 175 CLR 218 Inland Revenue Commission (NZ) v Ward [1970] NZLR 1 Khoo Tek Keong v Ch'ng Joo Tuan Neoh [1934] AC 529 McInnes (by her next friend Gail McInnes) v Insurance Commission of Western Australia [2011] WADC 17 Nelson v Greening & Sykes (Builders) Ltd [2007] EWCA Civ 1358 Perpetual Trustee Company Limited and MSC [2011] WASAT 127 Perpetual Trustees WA Limited and the Public Trustee [2009] WASAT 253 Pilkington v Inland Revenue Commissioners [1964] AC 612 Re Baron Vestey's Settlement v O'Meara [1951] Ch 209 Re CAC [2009] QGAAT 63 Re Eve (1986) 31 DLR (4th) 1 Re White [1959] VR 661 Re Wragg [1919] 2 Ch 58 Wellesley v Duke of Beaufort (1827) 2 Russ 1; (1827) 38 ER 236

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA

IN CIVIL

CITATION : PERPETUAL TRUSTEE COMPANY LTD -v- CHEYNE [2011] WASC 225 CORAM : EDELMAN J HEARD : 25 AUGUST 2011 DELIVERED : 29 AUGUST 2011 FILE NO/S : CIV 2555 of 2011 BETWEEN : PERPETUAL TRUSTEE COMPANY LTD (as Trustee for the Michael Scott Cheyne Compensation Trust)

Plaintiff

AND

MICHAEL SCOTT CHEYNE (by his Guardian Ad Litem HELEN RITA LLOYD)

Defendant

Catchwords:

Trusts and trustees - Court ordered trust of judgment sum - Meaning of 'advancement' and 'benefit' - Whether disposition of trust fund capital for superannuation policy to be held directly for beneficiary, by his limited administrator, is within terms of trust

Trusts and trustees - Section 17

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2011] WASC 225
Decision Date: 29 AUGUST 2011

CaseChat Overview and Summary

The case involved Perpetual Trustee Company Ltd as the trustee of a Court Compensation Trust and the dispute centred around the disposition of trust funds. The beneficiary of the trust, Mr. Cheyne, had appointed a limited administrator to manage his affairs. The matter was heard in the Supreme Court of Western Australia. The primary legal issues before the court were whether the disposition of the trust fund capital for a superannuation policy, held directly for the beneficiary by their limited administrator, was within the terms of the trust and whether such a disposition constituted an investment under Section 17 of the Trustees Act 1962 (WA). Additionally, the court needed to determine whether the parens patriae power of the court authorised the disposition of the trust funds as sought.

The court examined the meaning of 'advancement' and 'benefit' in the context of the trust deed. It concluded that the disposition of the trust fund capital for the superannuation policy was within the terms of the trust, as it was for the beneficiary's benefit. Furthermore, the court found that the disposition constituted an investment under the relevant section of the Act, as it involved the prudent management of trust assets for the beneficiary's future security. The parens patriae power of the court was also found to authorise the disposition of the trust funds as sought, as it aligned with the welfare and best interests of the beneficiary.

In summary, the court ruled that the disposition of the trust fund capital for a superannuation policy, held directly for the beneficiary by their limited administrator, was within the terms of the trust and constituted an investment under the Trustees Act 1962 (WA). The parens patriae power of the court was also found to authorise the disposition of the trust funds as sought. Directions were given that the proposed transfer was within the terms of the Court Compensation Trust.

Orders

Orders of the court

Directions given that the proposed transfer is within the terms of the Court Compensation Trust

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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