Warton v Yeo

Case [2015] NSWCA 115


Court of Appeal


Supreme Court


New South Wales

  • Summary available
Medium Neutral Citation: Warton v Yeo [2015] NSWCA 115
Hearing dates:3 March 2015
Decision date: 07 May 2015
Before: Basten JA at [1];
Ward JA at [22];
Emmett JA at [84]
Decision:

1.The appeal is allowed.
2.Set aside the declaration made on 29 April 2014.
3.In lieu thereof, declare that, upon the proper construction of cl 6(b) of the Will of Justin Huntley Augustine Callaghan dated 25 August 1994, Mark Alexander Lamond, Gregory Charles Lamond, Vincent James Lamond, Veronica Ann Warton and David John Lamond are the “children” of the said Ailsa Josephine Lamond and entitled to an equal share of the estate referred to therein.
4.Order that the first respondent as trustee and executor of the estate of the late Justin Huntley Augustine Callaghan account to each of Mark Alexander Lamond, Gregory Charles Lamond, Vincent James Lamond, Veronica Ann Warton and David John Lamond for equal 9.76% shares of the residue of the said estate.
5.The appeal costs of the appellants, assessed on an indemnity basis be paid out of the proceeds of sale of the deceased’s retirement village unit.
6.The appeal costs of each of the first and second respondents be paid out of the proceeds of sale of the deceased’s retirement village unit assessed on an indemnity basis but limited to the cost of filing a submitting appearance in each case.
7.There be no variation of the costs orders made by the primary judge in respect of the costs of the proceedings at first instance.

Catchwords:

COSTS – appeal costs - where beneficiary filed submitting appearance but executor actively sought to uphold primary judge’s construction of will – whether executor limited to costs as submitting party - where residuary estate partially distributed – part of estate from which costs to be paid

SUCCESSION – appeal - wills – construction of will – whether ‘children’ included step-children or only natural child – whether subsequent will of beneficiary relevant in construction

WORDS AND PHRASES – one such of her children as shall survive me
Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56, 98; Pt 6, Div 1
Probate and Administration Act 1898 (NSW) s 85
Succession Act 1981 (Qld) s 40A
Supreme Court Act 1970 (NSW)
Supreme Court Rules, Pt 70
Trustee Act 1925 (NSW), ss 5, 59, 63, 93, 96, 104
Uniform Civil Procedure Rules 2005 (NSW), rr 42.1, 42.25; Pts 42, 55
Cases Cited: Adsett v Berlouis (1992) 37 FCR 201
Allgood v Blake (1873) LR 8 Ex 160
Drummond v Drummond [1999] NSWSC 923
Estate of Jack Alexander Warren [2001] NSWSC 104
Glazier v Australian Men’s Health (No 2) [2001] NSWSC 6
Harris v Ashdown (1985) 3 NSWLR 193
His Eminence Metropolitan Petar, Diocesan Bishop of the Macedonian Orthodox Church of Australia and New Zealand v The Macedonian Orthodox Community Church St Petka Inc (No 2) [2007] NSWCA 287
Hypec Electronics Pty Ltd (In liq) v Mead [2004] NSWSC 731; 61 NSWLR 169

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AGLC
Warton v Yeo [2015] NSWCA 115
Case
[2015] NSWCA 115
Decision Date

CaseChat Overview and Summary

In *Warton v Yeo*, the New South Wales Court of Appeal considered an appeal concerning the construction of a will and the appropriate orders for costs. The primary dispute revolved around the interpretation of the phrase "one such of her children as shall survive me" within the will of Justin Huntley Augustine Callaghan, specifically whether this referred to natural children only or included step-children. The appellants, who were beneficiaries under the will, sought to have the primary judge's declaration set aside and a new declaration made regarding their entitlement.

The Court of Appeal was required to determine the proper construction of clause 6(b) of the will, specifically whether the term "children" encompassed step-children of the beneficiary, Ailsa Josephine Lamond. Additionally, the court had to consider the relevance of a subsequent will made by Ailsa Josephine Lamond to this construction. The appeal also raised questions regarding the appropriate orders for costs, particularly whether an executor actively seeking to uphold a primary judge's construction should be limited to costs as a submitting party, and from which part of the estate those costs should be paid, given that the residuary estate had been partially distributed.

The Court of Appeal allowed the appeal, setting aside the declaration made by the primary judge. It declared that, on the proper construction of the will, Mark Alexander Lamond, Gregory Charles Lamond, Vincent James Lamond, Veronica Ann Warton, and David John Lamond were the "children" of Ailsa Josephine Lamond and entitled to an equal share of the relevant estate. The court ordered the executor to account to these beneficiaries for equal shares of the residue. Regarding costs, the appellants' appeal costs were ordered to be paid out of the proceeds of sale of the deceased's retirement village unit on an indemnity basis. The first and second respondents' appeal costs were also to be paid from the same source on an indemnity basis, but limited to the cost of filing a submitting appearance. The court made no variation to the costs orders made by the primary judge concerning the proceedings at first instance.

Orders

Orders of the court

1.The appeal is allowed.

2.Set aside the declaration made on 29 April 2014.

3.In lieu thereof, declare that, upon the proper construction of cl 6(b) of the Will of Justin Huntley Augustine Callaghan dated 25 August 1994, Mark Alexander Lamond, Gregory Charles Lamond, Vincent James Lamond, Veronica Ann Warton and David John Lamond are the “children” of the said Ailsa Josephine Lamond and entitled to an equal share of the estate referred to therein.

4.Order that the first respondent as trustee and executor of the estate of the late Justin Huntley Augustine Callaghan account to each of Mark Alexander Lamond, Gregory Charles Lamond, Vincent James Lamond, Veronica Ann Warton and David John Lamond for equal 9.76% shares of the residue of the said estate.

5.The appeal costs of the appellants, assessed on an indemnity basis be paid out of the proceeds of sale of the deceased’s retirement village unit.

6.The appeal costs of each of the first and second respondents be paid out of the proceeds of sale of the deceased’s retirement village unit assessed on an indemnity basis but limited to the cost of filing a submitting appearance in each case.

7.There be no variation of the costs orders made by the primary judge in respect of the costs of the proceedings at first instance.

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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