Rankine v Rankine

In the Supreme Court of Queensland, a dispute arose between the Rankine siblings over the sale of partnership interests held in trust for them. The plaintiffs contended that the trustees, who were also their brothers, breached their fiduciary duties by selling their partnership interests to the existing partners and holding companies in 1965. The defendants argued that the sale was authorised by the trust deeds, was properly conducted, and benefited the plaintiffs. The court had to decide whether the trustees breached their fiduciary duties, whether the sale was a sham, and whether the sale price was too low. The court found that the trustees had the authority to sell to themselves and did not breach their fiduciary duties. The sale was not a sham, as it was properly documented and conducted according to legal and accounting advice. The sale price was appropriately calculated based on book values. The court dismissed the plaintiffs' claim and the defendants' counterclaim, reserving the question of costs.