Smolonogov v Our Lady of Kazan Russian Community of Lidcombe Inc

The matter of Smolonogov v Our Lady of Kazan Russian Community of Lidcombe Inc was heard in the Supreme Court of New South Wales. The dispute involved a charitable trust established by a will, which had been administered by a church originally under the control of the plaintiffs. However, the church subsequently came under the control of the defendants. The plaintiffs sought to enforce the original purposes of the trust, while the defendants argued that the purposes were no longer suitable or effective due to changes in the church's control. The parties resolved their dispute through mediation, but the court had to approve a cy-près scheme to allow the trust property to be administered by the church under the new faction's control.

The legal issues before the court included whether the trust was indeed a charitable trust and if a cy-près scheme was necessary. Both parties agreed that the trust was charitable and that a cy-près scheme was appropriate. The court had to determine whether the original purposes of the trust had ceased to be suitable and effective, and if the proposed cy-près scheme was justifiable. Additionally, the court needed to consider the role of the Attorney-General in protecting charities and whether the Attorney-General should be joined as a party in the proceedings.

The court found that the trust was indeed charitable and that the original purposes were no longer suitable or effective due to the change in the church's control. The court was satisfied with the spirit of the trust and the necessity for a cy-près scheme. However, the court required some amendments to the cy-près scheme to make it more workable. The court also decided that the Attorney-General should be joined as a party, given the charitable nature of the trust. Ultimately, the court approved the cy-près scheme with the necessary amendments.

The court's final orders included the approval of the cy-près scheme with certain amendments, the joining of the Attorney-General as a party, and the direction that the trust property be administered in accordance with the approved cy-près scheme. The court emphasised the importance of protecting the charitable nature of the trust and ensuring that the trust property was used effectively for the benefit of the community.