Carrington v Wallace [2022] NSWSC 1078

Supreme Court New South Wales

Medium Neutral Citation: Carrington v Wallace [2022] NSWSC 1078 Hearing dates: 9-10 May 2022 Date of orders: 16 August 2022 Decision date: 16 August 2022 Jurisdiction: Equity Before: Ward P Decision: 1. Direct the parties to file proposed short minutes of order to reflect and give effect to these reasons, within 14 days, together with brief submissions (if those orders not be agreed) as to the form of orders sought. 2. Direct the parties to file submissions on costs (and any submissions as to the question whether Matthew and Ashley should now be removed as executors and trustees of the deceased's estate) within 14 days. 3. Note that the final orders and costs orders will be made, if possible, on the papers but that if any of the parties requires a brief oral hearing this should be identified in the submissions filed pursuant to the above orders (with a short explanation as to why an oral hearing is necessary). Catchwords: SUCCESSION — Executors and administrators — Proceedings against executors and administrators — Application for relief – Application for removal – Rule against self-dealing – Whether the sale of estate property to an executor of the will was authorised by the will – Whether the beneficiaries consented to the sale of the property – Whether the beneficiaries made an election in respect of the breach of trust by the executors EQUITY — Equitable remedies — Rescission – Whether restitutio in integrum was possible Legislation Cited: Trustee Act 1925 (NSW), ss 81, 85 Trustee Act 1958 (Vic), s 63A Uniform Civil Procedure Rules 2005 (NSW), Pts 7, 28 Cases Cited: Acme Office Service Pty Ltd v Ludstom [2002] NSWSC 277 Adams v Alemite Lubrequip Pty Ltd [1994] NSWCA 1 Aequitas Ltd v Sparad No 100 Ltd [2001] NSWSC 14 Agricultural & Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570 Alati v Kruger (1955) 94 CLR 216 Allcard v Skinner (1887) 36 Ch D 145 Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1; [2018] HCA 43 Application of Tatham [2021] NSWSC 540 Arakella v Paton (2004) 60 NSWLR 334; [2004] NSWSC 14 Archbold v Scully (1861) 9 HLC 360 Beach Petroleum NL v Kennedy (1999) 48 NSWLR 1 Brown v The NSW Trustee & Guardian [2011] NSWSC 1203 Byrnes v Kendle (2011) 243 CLR 253; [2011] HCA 26 Cachia v Westpac Financial Services Ltd (2000) 33 ACSR 572 Campbell v Walker (1800) 5 Ves 678 Canson Enterprises Ltd v Boughton & Co [1993] 3 SCR 534 Carrington v Wallace (No 2) [2020] NSWSC Carrington v Wallace [2019] NSWSC 1301 Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36 Cisera v Cisera Holdings Pty Ltd (2018) 98 NSWLR 747; [2018] NSWCA 286 Cisera v Cisera Holdings Pty Ltd [2017] NSWSC 960 Clay v Clay (2001) 202 CLR 410; [2001] HCA 9 Clough v London & North Western Railway Co (1871) LR 7 Ex 26 Cole v Miles [2002] NSWCA 150 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Craine v Colonial Mutual Fire Insurance Co Ltd (1920) 28 CLR 305 Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd (2016) 260 CLR 1; [2016] HCA 26 Dalrymple v Melville (1932) 32 SR (NSW) 596 Edmonds v Donovan (2005) 12 VR 513 Ex parte Bennett (1805) 10 Ves 381, 394; 32 ER 893 Ex Parte James (1803) 32 ER 385; 8 Ves 337 Ex parte Lacey (1802) 6 Ves 625 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Fell v Fell (1922) 31 CLR 268; [1922] HCA 55 Frith v Gold Coast Mineral Springs Pty Ltd (1983) 47 ALR 547 Fysh v Page (1956) 96 CLR 233 Hagan v Waterhouse (1991) 34 NSWLR 308 Hall v Hallet (1784) 1 Cox 134 Hartley Poynton Ltd v Ali (2005) 11 VR 568 Hewitt v Gardner; Hewitt v Gardner [2009] NSWSC 705 Holder v Holder [1968] Ch 353 Immer (No 145) Pty Ltd v Uniting Church in Australia Property Trust (NSW) (1993) 182 CLR 26 Ip v Chiang [2021] NSWSC 822 Jones v Dunkel (1959) 101 CLR 298 Kane v Radley-Kane [1999] Ch 274 Khoury v Government Insurance Office (NSW) (1984) 165 CLR 622 Maelor Jones Investments (Noarlunga) Pty Ltd v Heywoord- Smith (1989) 54 SASR 285 McCrohon v Harith [2010] NSWCA 67 McHugh v Eastern Star Gas Ltd (2012) 265 FLR 124; [2012] NSWCA 169 McNally v Harris (No 3) [2008] NSWSC 861 Metropolitan Petar v Mitreski [2012] NSWSC 16 Miller v Miller (1995) 16 ACSR 73 Munchies Management Pty Ltd v Belperio (1988) 58 FCR 274 Nadinic v Drinkwater (2017) 94 NSWLR 518; [2017] NSWCA 114 Nicholls v Michael Wilson & Partners Ltd [2012] NSWCA 383 NSW Masonic Youth Property Trust v Attorney-General (NSW) [2010] NSWSC 333 O'Connor v SP Bray Ltd (1936) 36 SR (NSW) 248 O'Halloran v R T Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Our Lady's Mount Pty Ltd v Magnificat Meal Movement International Inc (1999) 33 ACSR 163 Partridge v Equity Trustees Executors and Agency Co Ltd (1947) 75 CLR 149 Pateman v Heyen (1993) 33 NSWLR 188 Phipps v Boardman [1964] 2 All ER 187 Pleash, in the matter of Suncoast Restoration Pty Ltd (in liq) (2013) 211 FCR 203; [2013] FCA 355 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 Precision Plastics Pty Ltd v Demir (1975) 132 CLR 362 Re Bell's Indenture; Bell v Hickley [1980] 1 WLR 1217; [1980] 3 All ER 425 Re Chomley [2014] VSC 220 Re Country Road Services Pty Limited (2019) 18 ASTLR 44; [2019] NSWSC 779 Re Dawson; Union Fidelity Trustee Co Ltd v Perpetual Trustee Co Ltd (1966) 84 WN (Pt 1) (NSW) 399; [1966] 2 NSWR 211 Re Kingston Property Holdings Pty Ltd (No 2) [2017] FCA 974 Re Manormay Investments Pty Ltd [2013] VSC 260 Re Patros (2007) 16 VR 182 [2007] VSC 83 Re Simpkiss Pty Ltd (in liq) [2018] FCA 2121 Re Tabone [1968] VR 168 Riddle v Riddle (1952) 85 CLR 202 Rothschild v Brookman (1831) 2 Dow & Clark 188 Sargent v ASL Developments Pty Ltd (1974) 131 CLR 634; [1974] HCA 40 Saunders v Vautier (1841) 41 ER 482 Sibley v Grosvenor (1916) 21 CLR 469 Silkstone and Haigh Moor Coal Co v Edey [1900] 1 Ch 167 Southern Real Estate Pty Ltd v Dellow (2003) 87 SASR 1 Spellson v George (1992) 26 NSWLR 666 Target Holdings Limited v Redferns (a firm) [1996] 1 AC 421 Thomas Hare Investments Ltd v Hare (2012) 34 VR 656 Tito v Waddell (No 2) [1977] Ch 106 United States Surgical Corporation v Hospital Products International Pty Ltd [1982] 2 NSWLR 766 Vadasz v Pioneer Concrete (SA) Pty Limited (1995) 184 CLR 102; [1995] HCA 14 Waine v King (unreported, Supreme Court of New South Wales, Hodgson J, 5 October 1994) Warman International Ltd v Dwyer (1995) 182 CLR 544; [1995] HCA 18 Williams v Scott [1900] AC 499 Yates v Halliday [2006] NSWSC 1346 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15 Texts Cited: Ashburner's Principles of Equity (1933, 2nd ed) D O'Sullivan, S Elliott and R Zakrzewski, The Law of Rescission (2014, 2nd ed, Oxford University Press) David J Hayton, Paul Matthews and Charles Mitchell, Underhill and Hayton Law of Trusts and Trustees (2016, 20th ed, Lexis Nexis Butterworths) H A J Ford, W A Lee, Law of Trusts (2010, 4th ed, Thomson Reuters) J D Heydon, M J Leeming, Jacob's Law of Trusts in Australia (2006, 7th ed, Lexis Nexis Butterworths) J D Heydon, M J Leeming, P G Turner, Meagher, Gummow & Lehane's Equity, Doctrines & Remedies (2015, 5th ed, Lexis Nexis Butterworth) Lord Goff of Chieveley, Gareth Jones, The Law of Restitution (2002, 6th ed, Sweet & Maxwell) PW Young, C Croft, M Smith, On Equity (2009, Thomson Reuters Lawbook Co) Category: Principal judgment Parties: Mischa Grace Carrington (First Plaintiff) Dean Edward Carrington (Second Plaintiff) Matthew Gary Wallace (First Defendant) Ashley Joseph Carrington (Second Defendant) Representation: Counsel: A Cheshire SC with H Morrison (Plaintiffs) A Harding SC with J Cook (Defendants)