| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMERCIAL AND EQUITY DIVISION
No. 7300 of 2004
IN THE MATTER of the Will and Estate of Clements Langford, deceased.
BETWEEN:
| EQUITY TRUSTEES LTD (as Trustee of the Estate of Clements Langford deceased) | Plaintiff |
| v | |
| JACK ELGAR LANGFORD and OTHERS | Defendants |
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JUDGE: | Byrne J | |
WHERE HELD: | Melbourne | |
DATESOF HEARING: | 7, 8 and 9 February 2005 | |
DATE OF JUDGMENT: | 24 March 2005 | |
CASE MAY BE CITED AS: | Re Langford (deceased); Equity Trustees Ltd v Langford | |
MEDIUM NEUTRAL CITATION: | [2005] VSC 84 | |
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Administration and probate – settled land – Trustee’s power of sale under the salvage jurisdiction – Trustee’s power of sale under expediency jurisdiction.
Trustee Act 1958, s.63
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APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr R. A. Brett QC with Ms K. Anderson | Chessell Williams |
| For the 1-3rd, 5-14th and 16th Defendants | Mr S. McNab | Darren Muir Fleiter |
| For the 15th and 18th Defendants | Mr N. O’Bryan SC | Norton Gledhill |
| For the 19th – 29th Defendants | Mr G. Uren QC | F.R. Monotti & Co |
| For the 30th Defendant | Mr J. O’Bryan | Victorian Government Solicitor |
HIS HONOUR:
Many a parent would like to have a beach house – a place where they and their children and their children’s children can gather and recreate in the long summer days and, indeed, throughout the year. The late Clements Langford was one such. He had the added advantage of being a successful master builder and a wealthy man. He was able to build a seven bedroom house of 265 sqm on the cliff top at Sorrento on a block of land in excess of four acres which he had purchased in 1904. The property is called Netley.
Mr Langford made provision for his family’s continuing enjoyment of Netley in cl. 7 of his will dated 23 June 1928.
“7. I direct my trustees to retain my property known as ‘Netley’ Sorrento and to pay all rates taxes charges insurance and other expenses in connection therewith including all repairs and the keeping of the house grounds and fences in good proper and tenantable order and repair and to permit my children and my grandchildren as hereinafter defined to use occupy and (enjoy the same free of charge according to such arrangements
O’D.C.
C.L.
J.H.P.
as my said (children and grandchildren shall agree upon between themselves or failing (such agreementas my trustees shall decide.”
The testator died on 6 February 1930.
Now, 75 years later, Mr Langford’s widow and all of his eight children are deceased. Of his 26 grandchildren there remain surviving only sixteen whose ages range from 62 years to 91 years. The actuarial opinion before me shows that the class of grandchildren is expected to expire at the end of 2030 or thereabouts[1].
[1]The Mercer Report dated 23 July 2003 IFL7/p. 5 predicts expiry after 27.3 years, that is in November…
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- Case
- [2005] VSC 84
- Decision Date
CaseChat Overview and Summary
The central legal issue was whether the sale of settled land by the trustees could be executed under the 'salvage jurisdiction', which allows for a sale if it is for the benefit of the beneficiaries, or whether the sale must be conducted under the 'expediency jurisdiction', which is more stringent and requires court approval. The court had to determine whether the trustees had properly exercised their discretion and if the sale was conducted in accordance with the relevant statutory provisions.
The court held that the trustees had acted within their powers and the sale was properly executed under the 'salvage jurisdiction'. The court found that the trustees had exercised their discretion appropriately, considering the best interests of the beneficiaries. The sale was deemed to be for the benefit of the beneficiaries, and therefore, the court did not need to intervene under the more stringent 'expediency jurisdiction'. The court's decision was based on the interpretation of section 63 of the Trustee Act 1958, which grants trustees the power to sell settled land if it is in the best interests of the beneficiaries.
The court's final order was that the sale of the settled land by the trustees was valid and that the sale was conducted in accordance with the statutory provisions. The court affirmed that the trustees had exercised their powers appropriately and that the sale was in the best interests of the beneficiaries.
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