Wang v Estate of Wang; Lu by his tutor Fang v Lu

In Wang v Estate of Wang; Lu by his tutor Fang v Lu, the Federal Court of Australia was asked to consider the application of the public policy rule of forfeiture in the context of a deceased estate. The deceased, Wang, died while her husband, Lu, was convicted of dangerous driving offences, including causing death by dangerous driving. Wang's son, Lu, sought to inherit under her will, but the executors of the estate argued that Lu should be excluded from the inheritance due to the public policy rule of forfeiture. The case involved a settlement reached between the parties in related proceedings, which the court was asked to consider in the context of whether a modification order should be made to the forfeiture rule.

The primary legal issue before the court was whether the public policy rule of forfeiture should apply in circumstances where a settlement had been reached between the parties in related proceedings. The court needed to determine if such a settlement could modify the application of the public policy rule, which traditionally bars a person who has caused the death of another from benefiting from the deceased's estate. The court also considered whether the settlement reached in related proceedings should be taken into account when determining the appropriate application of the public policy rule in this case.

The court found that the public policy rule of forfeiture is not absolute and may be modified in appropriate circumstances. In this case, the court considered the settlement reached in related proceedings, which included the acknowledgment by Lu of his culpability in causing his wife's death. The court held that the settlement and the acknowledgment of culpability were significant factors that justified modifying the application of the public policy rule. As a result, the court made a modification order, allowing Lu to inherit from his wife's estate, despite his convictions. The court balanced the principles of public policy with the specific circumstances of the case, ultimately finding that the settlement and acknowledgment of guilt warranted a departure from the strict application of the forfeiture rule.

The court's final orders included granting the modification order to allow Lu to inherit from his wife's estate, despite the public policy rule of forfeiture. The court emphasised that this decision was based on the specific circumstances of the case, including the settlement and acknowledgment of culpability, and was not a blanket departure from the public policy rule. The court's decision highlighted the flexibility of the public policy rule in appropriate cases and the importance of considering the specific circumstances when applying the rule.