SUPREME COURT OF VICTORIA
COURT OF APPEAL
S APCI 2015 0047
| PERSEPHONE WALES (as the representative of the Estate of MURRAY WRIGHT WALES, deceased) | First Applicant |
| and | |
| ROHAN WRIGHT WALES | Second Applicant |
| v | |
| GLADYS WALES | First Respondent |
| and | |
| ROSLYN MATEAR | Second Respondent |
| and | |
| SUZANNE MARIE CASE | Third Respondent |
| S APCI 2015 0066 | |
| JULIAN WALES | Applicant |
| v | |
| GLADYS WALES | First Respondent |
| and | |
| ROSLYN MATEAR | Second Respondent |
| and | |
| SUZANNE MARIE CASE | Third Respondent |
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| JUDGES: | KYROU and McLEISH JJA and GINNANE AJA |
| WHERE HELD: | MELBOURNE |
| DATE OF HEARING: | 4 November 2015 |
| DATE OF JUDGMENT: | 16 December 2015 |
| MEDIUM NEUTRAL CITATION: | [2015] VSCA 345 |
| JUDGMENT APPEALED FROM: | [2015] VSC 151 (McMillan J) |
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COSTS – Trustees – Applications for leave to appeal – Dispute between capital beneficiaries and trustees – Failure by trustees to maintain and provide full accounts – Trustees commenced proceeding to pass accounts and wind up trusts – Removal of trustees – Proceeding dismissed by consent save as to costs – Whether trustees entitled to costs of proceeding to be paid out of trusts – Whether proceeding commenced for proper purpose – Whether trustees failed to perform duties with reasonable diligence and care – Applications for leave to appeal dismissed.
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| APPEARANCES: | Counsel | Solicitors |
| For the Applicants in S APCI 2015 0047 | Mr R Wells with Mr J Rizzi | Tolhurst Druce & Emmerson |
| For the Applicant in S APCI 2015 0066 | In person | |
For the Respondents | Mr P B Murdoch QC with Mr C M Archibald | HWL Ebsworth Lawyers |
KYROU JA
McLEISH JA
GINNANE AJA:
These two applications for leave to appeal are brought in relation to orders as to costs in respect of a proceeding commenced and discontinued in the Trial Division. The proceeding concerned a series of family trusts. The issue in dispute is whether the costs of the proceeding should be paid out of the trust estates, as the trial judge ordered, or should be paid by the trustees personally. For the reasons that follow, leave to appeal should be refused.
The income beneficiary under each of the trusts, Beverley Hutchison, died on 3 September 2010. By her will, the first respondent, Gladys Wales, was appointed executrix and trustee of her estate and Mrs Wales’ daughters, Roslyn Matear and Suzanne Case, the second and third respondents, were the beneficiaries.
The three respondents were, at relevant times, the trustees of each of the trusts. The capital beneficiaries of the trusts, in varying proportions, are Mrs Wales’ nephews Rohan Wales, Julian Wales and Ashley Wales, and her daughters already mentioned. The nephews are beneficiaries, both in their own right and, in the case of one trust, through their interest as beneficiaries under the will of their late father Murray Wales. Persephone Wales, daughter of Rohan Wales, is the representative of the estate of Murray Wales in the present proceeding. Together with Rohan Wales, she brings the first application for leave to appeal.
The second application is brought by Julian Wales. The remaining beneficiaries, being Ashley Wales, Roslyn Matear and…
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- AGLC
- Wales v Wales [2015] VSCA 345
- Case
- [2015] VSCA 345
- Decision Date
CaseChat Overview and Summary
The court examined the evidence and arguments presented by both parties, focusing on the trustees' conduct and the reasons for initiating the proceeding. The beneficiaries argued that the trustees had not acted with the requisite diligence and care, and that the proceeding was not commenced for a proper purpose, particularly as it related to the trustees seeking to be indemnified for costs from the trust. The court considered the statutory framework governing trustees' duties and the general principles of equity applicable to trustees' actions. It also assessed the evidence regarding the trustees' reasons for initiating the proceeding and whether these reasons were reasonable and justified.
The court concluded that the trustees were not entitled to have the costs of the proceeding paid out of the trust funds, as the proceeding was not commenced for a proper purpose and the trustees had not discharged their duties with the requisite level of care and diligence. The court held that the trustees' actions did not meet the standard expected of them, particularly in relation to the maintenance and provision of accounts. The applications for leave to appeal were dismissed, and the court emphasised the importance of trustees fulfilling their duties with the utmost care and for the proper benefit of the beneficiaries.
The final orders reflected the court's findings, disallowing the trustees' claim for costs and highlighting the necessity for trustees to adhere to their fiduciary duties. The court's decision underscored the critical role of trustees in managing family trusts and the importance of accountability in their actions.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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