Australian Karting Association Ltd v Karting (New South Wales) Incorporated [2022] NSWCA 188

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Australian Karting Association Ltd v Karting (New South Wales) Incorporated [2022] NSWCA 188 Hearing dates: 16 June 2022 Date of orders: 21 September 2022 Decision date: 21 September 2022 Before: Meagher JA at [1] Gleeson JA at [2] Simpson AJA at [148] Decision: (1) Appeal dismissed. (2) Appellant to pay the respondent's costs of the appeal. Catchwords: EQUITY – trusts and trustees – discretionary trust – whether unpaid distributions payable at call – unpaid distributions credited to beneficiaries' loan accounts – acknowledgement of debt in audited accounts of the trust – whether trustee intended to exercise power of distribution – whether approval of audited accounts of trust justifies inference as to trustee's intention and informal resolution to make distributions CORPORATIONS – accounts – evidentiary weight of matters stated or recorded in accounts of the trust – s 1305, Corporations Act (Cth) – inference to be drawn from matters recorded in accounts of the trust – where no formal resolution of directors to distribute income to beneficiaries APPEAL – new point on appeal – where alternative case on appeal involves contrary proposition to case at trial – whether prejudice to respondent Legislation Cited: Associations Incorporations Act 2009 (NSW) Associations Incorporation Act 1981 (Qld), ss 60, 61 Associations Incorporation Act 1981 (Vic), ss 3, 23 Competition and Consumer Act 2010 (Cth), Sch 2 – Australian Consumer Law, s 21 Corporations Act 2001 (Cth), ss 9, 112, 286, 297, 1305 Perpetuities Act 1984 (NSW), s 7 Uniform Civil Procedure Rules 2005 (NSW), r 42.1 Cases Cited: Australian Securities and Investments Commission v Rich [2009] NSWSC 1229; (2009) 246 FLR 1; 75 ACSR 1 Chianti Pty Ltd v Leume Pty Ltd (2007) 35 WAR 488; [2007] WASCA 270 Community Development Pty Ltd v Engwirda Construction Co (1969) 120 CLR 455; [1969] HCA 47 Edwards v Attorney-General (2004) 60 NSWLR 667; [2004] NSWCA 272 Edwards v Lowndes (1852) 1 El & Bl 81; 118 ER 367 Fischer v Nemeske Pty Ltd (2015) 257 CLR 615; [2016] HCA 11 Grant-Taylor v Babcock Brown Ltd (in liq) [2015] FCA 149; (2015) 322 ALR 723 Grant-Taylor v Babcock Brown Ltd (in liq) [2016] FCAFC 60; (2016) 245 FCR 402 HL Bolton (Engineering) Co Ltd v TJ Graham & Sons Ltd [1957] 1 QB 159 Hoh v Ying Mui Pty Ltd [2019] VSCA 203 Livingspring Pty Ltd v Kliger Partners (2008) 20 VR 377; [2008] VSCA 93 Multicon Engineering Pty Ltd v Federal Airports Corporation (1997) 47 NSWLR 631 MYT Engineering Pty Ltd v Mulcon Pty Ltd (1997) 140 FLR 247 Roxborough v Rothmans of Pall Mall Australia Limited (2001) 208 CLR 516; [2001] HCA 68 Water Board v Moustakas (1988) 180 CLR 491; [1988] HCA 12 Whitton v Regis Towers Pty Ltd [2007] FCAFC 125; (2007) 161 FCR 20 Category: Principal judgment Parties: Australian Karting Association Limited (Appellant) Karting (New South Wales) Incorporated (Respondent) Representation: Counsel: C J Birch SC / J V Gooley (Appellant) J R J Lockhart SC / S Snow (Respondent)