Stephens v Chee; Chee v CBC Properties (Qld) Pty Ltd in its own capacity and as Trustee of Chee Family Trust

The case of Stephens v Chee; Chee v CBC Properties (Qld) Pty Ltd in its own capacity and as Trustee of Chee Family Trust involved the trustees of a family trust who were seeking indemnity for costs incurred from the trust assets. The respondents, including Timothy Chee, challenged the trustees’ entitlement to costs from the trust fund. The dispute centred on the trustees' partial success in their Beddoe application, and the respondents argued that the trustees should not be indemnified from the trust fund because their application was only partially successful. Additionally, the respondents contended that any costs awarded should be limited to funds held by the trustees for certain beneficiaries and should only be paid once there was an outcome in proceedings the trustees were advised to commence.

The court examined whether the trustees should be indemnified from the trust assets for the costs of their Beddoe application. It considered the trustees' entitlement to costs out of the trust fund given their partial success, and whether the Beddoe application was reasonably made in respect of all potential claims. The court found that there was no demonstrated basis for depriving the trustees of their costs from the trust fund as the application was reasonably made in respect of all potential claims. Furthermore, the court held that the trustees were entitled to their costs from the trust fund, and one half of the respondents' costs were also awarded to be paid from the trust fund. The court also addressed an application to vary the order for costs, which was refused as there was no demonstrated basis for reconsidering the basis for the assessment of costs.

In conclusion, the court ordered that the trustees’ costs of the proceeding be paid from the trust fund, and one half of Timothy Chee's costs were also to be paid from the trust fund. The application to vary the order for costs made in favour of the applicant was refused. The decision underscores the importance of the reasonableness of the trustees' application in determining their entitlement to costs from the trust fund.