Redding v Lee

The High Court of Australia heard an appeal in *Redding v Lee*. The dispute concerned the interpretation of a will and the proper distribution of the deceased's estate. The primary issue was whether a specific bequest of shares in a company lapsed due to the company's subsequent reconstruction and reorganisation before the testator's death.

The court was required to determine whether the shares bequeathed in the will, as they existed at the time of the testator's death, were substantially the same as the shares held by the testator after the company's reconstruction. This involved considering whether the changes to the company's structure and share capital amounted to a fundamental alteration of the subject matter of the bequest, thereby causing it to lapse under the doctrine of ademption.

The High Court held that the bequest had not lapsed. The majority reasoned that the core of the testator's intention was to bequeath their interest in the company, and the subsequent reconstruction, while altering the form of the shares, did not fundamentally change the nature of that interest. The court applied the principle that a legacy of specific shares will not adeem if the shares, despite changes in form, represent the same underlying proprietary interest in the company. The court distinguished this case from situations where the company itself ceased to exist or the testator's interest was fundamentally altered.

The appeal was allowed, and the orders of the lower court were set aside. The court declared that the specific bequest of shares was valid and should be distributed according to the terms of the will.