Re: Application of the Anglican Property Trust Diocese of Bathurst

The Anglican Property Trust Diocese of Bathurst sought judicial advice from the court regarding two matters. Firstly, the Trust applied for guidance on whether it would be justified in defending certain proceedings brought against it in the Commercial List of the court. Secondly, it sought advice on whether it would be justified in using the resources of the trust to defend these proceedings. Additionally, the Trust made a further application for judicial advice on whether it would be justified in not commencing proceedings against an insurer if the insurer denied or failed to admit liability under a relevant insurance policy.

The central legal issues before the court were whether the trustee was justified in defending the proceedings against it and whether it was justified in using trust resources for that defence. The court also considered whether it would be justified for the trustee not to pursue the insurer under the insurance policy if the insurer denied or failed to admit liability.

The court provided detailed guidance on the issues, examining the nature of the proceedings against the Trust, the potential impact on the Trust's resources, and the obligations of the trustee under the trust deed and relevant legislation. The court concluded that it was justified for the Trust to defend the proceedings and to use trust resources for that purpose, provided certain conditions were met. Regarding the insurer, the court found that it would not be justified for the Trust to forgo pursuing the insurer if liability was denied or not admitted, unless specific circumstances applied.

The court's final orders were that the Trust was justified in defending the proceedings against it and in using trust resources to do so, subject to the conditions outlined in the judgment. Furthermore, the Trust was not justified in not pursuing the insurer unless the insurer's denial or non-admission of liability met specific criteria.