Read v Carmody

In *Read v Carmody and Anor* [1998] NSWCA 182, the New South Wales Court of Appeal considered an appeal concerning the interpretation of a will. The primary dispute revolved around whether a specific bequest of a property was intended to be a gift of the property itself or a gift of the proceeds of sale of that property. The appellant, the executor of the will, sought clarification on this matter, while the respondent, a beneficiary under the will, argued for a particular interpretation.

The central legal issue before the Court of Appeal was to determine the true construction of the relevant clause in the will. Specifically, the court had to ascertain whether the testator intended to bequeath the physical property or the net proceeds arising from its sale. This involved an examination of the precise wording of the bequest and the surrounding circumstances as evidenced by the will itself.

The Court of Appeal, in its reasoning, applied established principles of will construction. It emphasised that the paramount consideration is to ascertain the testator's intention from the words used in the will, read as a whole. The court analysed the specific language employed in the bequest, noting that the use of phrases such as "I give and bequeath" in relation to a specific property, without any explicit direction for sale, indicated an intention to gift the property itself. The court distinguished this from situations where a will directs the sale of property and then bequeaths the proceeds, which would clearly indicate a gift of money.

Ultimately, the Court of Appeal found that the bequest was a gift of the property itself, not the proceeds of its sale. The appeal was therefore allowed, and the court made declarations to that effect.