Westfield QLD No. 1 Pty Limited & Anor v Lend Lease Real Estate Investments Limited & Ors

The matter between Westfield QLD No. 1 Pty Limited and Anor against Lend Lease Real Estate Investments Limited and Ors was heard in the Queensland Land Court. The dispute centred around the proper characterisation of the proceedings, specifically whether they were of a civil or statutory nature, and the rights of a trustee to be indemnified out of trust assets in respect of court proceedings.

The court had to decide whether the proceedings were civil in nature, which would entitle the prevailing party to costs, or if they were statutory, which would exclude such entitlement. Additionally, the court needed to determine whether the trustee had the right to be indemnified out of the trust assets for the costs incurred in the proceedings. The primary issue was whether the costs incurred by the trustee in defending the trust were properly characterised as statutory or civil in nature, and if the trustee had the right to be indemnified out of trust assets.

The court held that the proceedings were of a statutory nature, and therefore the trustee was not entitled to be indemnified out of trust assets for the costs incurred. The court reasoned that the statutory nature of the proceedings was determined by the statutory framework within which the trust was established and operated. The court concluded that the trustee's right to indemnity was subject to the terms of the trust deed and the statutory provisions governing the trust. Consequently, the trustee's claim for indemnity was rejected.

The court ordered that the trustee was not entitled to be indemnified out of trust assets for the costs incurred in the proceedings. The court further directed that the parties bear their own costs of the proceedings.