Stilbo Pty Ltd v MCC Pty Ltd (in liq)

The case of Stilbo Pty Ltd v MCC Pty Ltd (in liq) involved a dispute concerning the equitable proprietary interest of the plaintiff in certain trust funds and properties. The plaintiff, Stilbo Pty Ltd, sought to establish that the third-named defendant, MCC Pty Ltd (in liquidation), held a constructive trust over specific properties and money due to their unconscionable retention of benefits derived from the Trust Money. The legal issues that arose in this case centred on whether the third-named defendant was a trustee de son tort of the trust established under the Deed of Settlement, and if so, whether they were accountable to the plaintiff for the Trust Money and the properties purchased with it.

The court had to determine whether the third-named defendant had actual notice of the facts that gave rise to the plaintiff's equitable interest in the Trust Money, and if their retention of benefits from this money was unconscionable. The court also needed to assess whether the third-named defendant exercised control over the Trust Money by purchasing the Youl Property and the D'Antoine Property. Given that the third-named defendant was aware of the terms of the trust and the nature of the Trust Money, the court had to decide whether these actions constituted acting as a trustee de son tort.

In ruling on these issues, the court found that the third-named defendant had actual notice of the facts giving rise to the plaintiff's equitable interest in the Trust Money. It was further determined that the retention of benefits by the third-named defendant was unconscionable, and thus, they held the Youl Property and the D'Antoine Property on constructive trust for the plaintiff. Alternatively, the court found that the third-named defendant exercised control over the Trust Money by purchasing the properties, making them accountable to the plaintiff as a trustee de son tort. Consequently, the court held that the third-named defendant was accountable to the plaintiff for the Trust Money and the properties.

The final orders of the court mandated that the third-named defendant hold the Youl Property and the D'Antoine Property on constructive trust for the plaintiff in such shares as the court would determine, and that they were accountable to the plaintiff as a trustee de son tort of the trust established under the Deed of Settlement.