Estate of Guamani; Guamani v De Cruzado [2023] NSWSC 502

Supreme Court New South Wales

Medium Neutral Citation: Estate of Guamani; Guamani v De Cruzado [2023] NSWSC 502 Hearing dates: 17 February 2023 (preliminary), 11 May 2023 (substantive) Date of orders: 18 May 2023 Decision date: 18 May 2023 Jurisdiction: Equity Before: Meek J Decision: Applicant's notice of motion seeking security for costs dismissed Catchwords: PROBATE — Application by widow of the deceased for security for costs in relation to a probate dispute where deceased made a series of Wills providing substantial benefit to his sister, a nephew and niece all resident in Ecuador and including a 2018 Will post-dating the deceased's marriage to the widow — Three days prior to his death, brought upon by respiratory failure and diffuse large B-cell lymphoma, the deceased made a Will (2021 Will) excluding those relatives and substantially benefiting the widow and her children from another marriage — Respondents challenge 2021 Will on grounds of testamentary capacity and "suspicious circumstances" bearing upon knowledge and approval — The limited evidence before the Court raises matters occasioning doubt on the grounds of challenge as to the validity of the deceased's final Will for the purposes of assessing the prospects of success and merits of the proceedings — No dispute as to the validity of the 2018 Will — Despite the respondents being plaintiffs in the proceedings, the real issues in dispute concern the validity of the final 2021 Will on which the applicant has the legal onus of proof — Order for security for costs refused PROBATE — Costs — Security for Costs —Respondents ordinarily resident outside Australia —No assets in Australia — Application pursuant to r 42.21 Uniform Civil Procedure Rules 2005 (NSW) (UCPR) — Discussion of applicable principles — The same security for costs principles apply to all proceedings but their application depends upon the facts of the particular case including the peculiarities of the nature of the proceedings which are the subject of the application PROBATE — Discussion of the nature of probate proceedings and distinctive features regarding the role of parties in probate proceedings — Consideration of such differences from ordinary civil litigation PROBATE — Costs — Discussion of nature of costs orders in probate proceedings — Probate costs exceptions to costs following the event not confined to instances of "the testator causing or being responsible for the litigation" or "cases inviting reasonable investigation" — Costs jurisdiction and available orders in probate more flexible than the so-called "usual exceptions" PROBATE — Costs — Security for Costs — Mechanisms in probate proceedings for achieving objectives associated with security for costs rationale without ordering security STATUTORY CONSTRUCTION — Definition of "plaintiff" and "defendant" for the purposes of the UCPR — Those terms not relevantly defined in the UCPR nor the Dictionary to the UCPR — The terms "plaintiff" and "defendant" construed by application of provisions of s 11 Interpretation Act 1987 (NSW) that words and expressions that occur in an instrument, which includes rules of Court, have the same meanings as they have in the Civil Procedure Act 2005 (NSW) JUDGMENTS — Enforcement of judgments in foreign jurisdiction in particular in Ecuador Legislation Cited: Births, Deaths and Marriages Registration Act 1995 (NSW) Civil Procedure Act 2005 (NSW) Foreign Judgments Act 1991 (Cth) Foreign Judgments Regulations 1992 (Cth) Interpretation Act 1987 (NSW) Marriage Act 1961 (Cth) Succession Act 2006 (NSW) Trustee Act 1925 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Wills, Probate and Administration Act 1898 (NSW) Cases Cited: Application of Doolan [2023] NSWSC 320 April Fine Paper v Moore Business Systems (2009) 75 NSWLR 619; [2009] NSWSC 867 Bailey v Bailey (1924) 34 CLR 558; [1924] HCA 21 Ball v Saint [2022] NZHC 3607 Banks v Goodfellow (1870) LR 5 QB 549 Bear v Bear; Jordan v Bear [2022] NSWSC 1687 Blashill v Chambers (1884) 14 QBD 479 Boyce v Bunce [2018] NSWSC 1924 Cassarino v Cassarino [2020] NSWSC 454 Cherry v Boultbee (1839) 4 My & Cr 442; 41 ER 171 Donoghue v Commissioner of Taxation [2018] FCA 468 Dowling v St Vincent De Paul Society of Victoria Inc [2003] VSC 454 Drivas v Jakopovic (2019) 100 NSWLR 505; [2019] NSWCA 218 East Grace Corporation v Xing (No 1) [2005] FCA 219 Estate of Kouvakas; Lucas v Konakas [2014] NSWSC 786 Estate Rofe [2021] NSWSC 257 Fell v Fell (1922) 31 CLR 268; [1922] HCA 55 Fiduciary Limited v Morningstar Research Pty Ltd [2004] NSWSC 664; (2004) 208 ALR 564 Gertsch v Roberts (1993) 35 NSWLR 631 Gray v Hart; Estate of Harris (No 2) [2012] NSWSC 1562 Hadid v Sabouh [2023] NSWSC 483 Hyland v Burbidge; The Estate of Charles Keith Hyland (Supreme Court (NSW), Powell J, 23 October 1992, unrep) Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744 In re Devoy; Fitzgerald v Fitzgerald [1943] St R Qd 137 In the Estate of Fuld deceased; Hartley v Fuld (Attorney General intervening) [1965] P 405 Karwala v Skrzypczak; In the Estate of Ratajczak [2006] NSWSC 203 Lewis v Lewis [2021] NSWCA 168 Maatschappij Voor Fondsenbezit v Shell Transport and Trading Co [1923] 2 KB 166 Mallitt v Gow [2022] NSWSC 1012 McKeown v Harris & Anor; Re Rice [2018] QSC 87 Mekhail v Hana; Mekhail v Hana [2019] NSWCA 197 Micallef v Linney [2020] NSWSC 1457 Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24; [1986] HCA 40 Newell and King v Weeks (1814) 2 Phillim 224; 161 ER 1126 Nobarani v Mariconte (2018) 265 CLR 236; [2018] HCA 36 Nock v Austin (1918) 25 CLR 519; [1918] HCA 73 Osborne v Smith (1960) 105 CLR 153; [1960] HCA 89 Potts or Riddell v Reid [1943] AC 1 Public Trustee v Gittoes aka Caldar [2005] NSWSC 373 R v Forbes; Ex parte Bevan (1972) 127 CLR 1; [1972] HCA 34 Rajski v Computer Manufacture & Design Pty Ltd [1982] 2 NSWLR 443 Rajski v Computer Manufacture & Design Pty Ltd [1983] 2 NSWLR 122 Ranclose Investments Pty Ltd v Leda Management Services Pty Ltd [2022] NSWCA 206 Re Dowling; sub nom NSW Trustee & Guardian v Crossley [2013] NSWSC 1040 Re Estate Condon; Battenberg v Phillips [2017] NSWSC 1813 Re Estate Pierobon, Deceased [2014] NSWSC 387 Re Estates Brooker-Pain and Soulos [2019] NSWSC 671 Re Hodges; Shorter v Hodges (1988) 14 NSWLR 698 Re Hubbard; Estate of Ross [2011] NSWSC 617; (2011) 4 ASTLR 497 Re Rosie (No 2) [2022] NSWSC 1750 Re Marriage of Brown (1991) 15 Fam LR 69 Robinson v Jones (No 3) [2015] VSC 508 Rusiti v Alkhoshaibi [2007] NSWSC 1374 Singer v Berghouse [1993] HCA 35; (1993) 114 ALR 521 Street v Luna Park Sydney Pty Ltd [2006] NSWSC 1317 Tobin v Ezekiel (2012) 83 NSWLR 757; [2012] NSWCA 285 Trust Co of Australia Ltd v Perpetual Trustees WA Ltd (No P2) (1995) 36 NSWLR 654 Uptown Sydney Development Corp Pty Ltd v Bank of New Zealand (No 1) (1993) 11 ACSR 300 Willey v Synan (1935) 54 CLR 175; [1935] HCA 76 Young v Holloway [1985] P 87 Texts Cited: Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (Hague Judgments Convention) Dal Pont, GE, The Law of Costs (5th ed, 2021, LexisNexis) Geddes, Robert, Charles Roland and Paul Studdert, Wills, Probate Administration Law in New South Wales (1st ed, 1996, LBC Information Services) Handler, Les & Richard Neal, Mason and Handler Succession Law and Practice New South Wales (LexisNexis) Hastings, Roland and George Weir, Probate Law and Practice (1939, 1st ed, The Law Book Co of Australasia Pty Ltd) Hastings, Roland and George Weir, Probate Law and Practice (1948, 2nd ed, The Law Book Co of Australasia Pty Ltd) Herzfeld, Perry and Thomas Prince, Interpretation (2nd ed, 2020, Thomson Reuters) Janes, Stephen, David Liebhold and Paul Studdert, Wills, Probate and Administration Law in New South Wales (2nd ed, 2020, Thomson Reuters) Learmonth, Alexander, Williams, Mortimer & Sunnucks - Executors, Administrators and Probate (21st ed, 2018, Thomson Reuters) Lindsay J, "Parties, Property and Notice of Proceedings in Succession Law Cases" (Paper), College of Law Seminar, 20 February 2019 Lindsay J, "The 'Why' and 'What' of 'Suspicious Circumstances' in Probate Litigation" (Paper), Law Society of South Australia Succession Law Conference, Adelaide, 16 November 2018 Macquarie Dictionary, online ed Maestri, Raffael, "Once in a blue moon – the curious case of security for costs in contested probate litigation Pt 1" (2019) 21(1) REP 8 Maestri, Raffael, "Once in a blue moon – the curious case of security for costs in contested probate litigation Pt 2" (2019) 21(2&3) REP 17 Maestri, Raffael, "Once in a blue moon – the curious case of security for costs in contested probate litigation Pt 3" (2019) 21(4) REP 33 Mason, Keith, "The Inherent Jurisdiction of the Court" (1983) 57 Australian Law Journal 449 Meek SC, Michael and Paul Studdert, "Grants in administration of deceased estates" (2016) 43(1&2) Australian Bar Review 115 Ritchie's Uniform Civil Procedure NSW (LexisNexis) Category: Principal judgment Parties: Pastora Guamani (First Plaintiff / First Respondent) Lidia Chicaiza Guamani (Second Plaintiff / Second Respondent) Omar Ernesto Guamani Portilla (Third Plaintiff / Third Respondent) Luz Mariel Baca Flor De Cruzado (First Defendant / Applicant) NSW Trustee & Guardian (Second Defendant) Representation: Counsel: J Brown (11 May 2023) and C Hodgson (17 February 2023) (Plaintiffs / Respondents) A Power (First Defendant / Applicant)