Gillespie v Gillespies Cranes Nominees Pty Ltd [2022] NSWSC 1184

Supreme Court New South Wales

Medium Neutral Citation: Gillespie v Gillespies Cranes Nominees Pty Ltd [2022] NSWSC 1184 Hearing dates: 29 July 2022 Date of orders: 16 August 2022 Decision date: 02 September 2022 Jurisdiction: Equity - Expedition List Before: Parker J Decision: See [129] Catchwords: EQUITY – trusts and trustees – discretionary family trust – corporate trustee – beneficiary makes derivative claims affecting the trust – beneficiary makes derivative claim in equity – administrative jurisdiction of the Court over trusts EQUITY – pleaded prayers for relief – orders to "account and make good the Trust fund" – equitable debt – Barnes v Addy – equitable compensation – removal of trustee CORPORATIONS – statutory derivative actions – procedure under Part 2F.1A of the Corporations Act 2001 – exceptions to the rule in Foss v Harbottle – whether 236(3) of the Corporations Act abolishes derivative action by beneficiaries on behalf of the trust in equity – derivative action not abolished Legislation Cited: Corporations Act 2001, Part 2F.1A, ss 236, 237 Joint Stock Companies Act 1844 (7 & 8 Vict. c. 110) Uniform Civil Procedure Rules 2005, Part 54, rr 54.3, 54.4 Cases Cited: Alexander v Perpetual Trustees WA Ltd (2004) 216 CLR 109 Barnes v Addy (1874) LR 9 Ch App 244 Burland v Earle [1902] AC 83 Cassaniti v Ball [2022] NSWCA 161 Chahwan v Euphoric Pty Ltd [2008] NSWCA 52 Chahwan v Euphoric Pty Ltd [2009] NSWSC 805 Edwards v Halliwell [1950] 2 All ER 1064 El Sayed v El Hawach (2015) 88 NSWLR 214 Foss v Harbottle (1843) 2 Hare 461; 67 ER 189 Harmer v Armstrong [1934] Ch 65 Hayim v Citibank NA [1987] AC 730 Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar The Diocesan Bishop of The Macedonian Orthodox Diocese of Australia and New Zealand (2008) 237 CLR 66 Nurcombe v Nurcombe [1985] 1 WLR 370 Oates v Consolidated Capital Services Pty Ltd (2009) 76 NSWLR 69 Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204 Ramage v Waclaw (1988) 12 NSWLR 84 Randa Lee Investments Pty Ltd v Ballan [2015] VSC 178 Re Cemcon [2009] FCA 696 Re Dawson [1966] 2 NSWR 211 Re Field [1971] 1 WLR 555 Re Montagu's Settlement Trusts [1987] Ch 264 Roberts v Gill [2011] 1 AC 240 Salomon v A Salomon & Co Ltd [1897] AC 22 Scarel Pty Ltd v City Loan & Credit Corporation Pty Ltd (1988) 17 FCR 344 Sharpe v San Paulo Railway Co (1873) LR 8 Ch App 597 Super 1000 v Pacific General Securities [2008] NSWSC 1222 Treadtel International Pty Ltd v Cocco [2016] NSWCA 360 Yeshiva Properties No 1 Pty Ltd v Marshall [2005] NSWCA 23 Texts Cited: Boyle, A J, 'The Minority Shareholder in the Nineteenth Century: A Study in Anglo-American Legal History' (1965) 28(3) Modern Law Review 317 Conaglen, M, 'Equitable Compensation for Breach of Trust: Off Target' (2016) 40(1) Melbourne University Law Review 126 Explanatory Memorandum, Corporate Law Economic Reform Program Bill 1998 Heydon, J D and Leeming, M J, Jacobs' Law of Trusts in Australia (LexisNexis Butterworths, 8th ed, 2016) Heydon, J D, Leeming, M J and Turner, P G, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (LexisNexis Butterworths, 5th ed, 2015) Wedderburn, K W, 'Shareholders' Rights and the Rule in Foss v Harbottle' (1957) 15(2) Cambridge Law Journal 194 Category: Procedural rulings Parties: Motion filed 20 June 2022 by First Defendant Gillespies Cranes Nominees Pty Ltd (Applicant/First Defendant) Robert Gillespie (First Respondent/Plaintiff) Helen Ann Gillespie (Second Respondent/Second Defendant) Peter Timothy Gillespie (Third Respondent/Third Defendant) JPD Equipment Pty Limited (Fourth Respondent/Fourth Defendant) GCN Operations Pty Limited (Fifth Respondent/Fifth Defendant) Gilljo Pty Limited (Sixth Respondent/Sixth Defendant) Ainley Pty Limited (Seventh Respondent/Seventh Defendant)