Turnbull v Fleming [2024] NSWSC 918

Supreme Court New South Wales

Medium Neutral Citation: Turnbull v Fleming [2024] NSWSC 918 Hearing dates: 4-6 March 2024 Date of orders: 30 July 2024 Decision date: 30 July 2024 Jurisdiction: Equity - Succession & Probate List - Probate Before: Williams J Decision: Proceedings dismissed. Catchwords: SUCCESSION — Executors and trustees — Duties – Liability to account – Wilful default – Held: Plaintiff beneficiaries' claims for the taking of an account on wilful default basis, or equitable compensation in respect of alleged wilful defaults, dismissed. SUCCESSION – Construction, validity and operation of clause in will excluding liability of executor for loss – Where defendant executor was the testator's solicitor who drafted the will - Whether clause void or unenforceable by reason of presumed undue influence - Held: Presumption of undue influence does not apply in probate context – Whether liability for "loss" in the context of the exclusion clause includes liability to account on a wilful default basis – Held: yes – Whether exclusion clause is void on the basis that it is repugnant or contrary to public policy because it excludes liability for breach of executor's irreducible core obligations – Held: No, the clause, properly construed, does not exclude liability for breach of irreducible core obligations of honesty and good faith. Legislation Cited: Trustee Act 1925 (NSW) s 85 Cases Cited: Alexander v Perpetual Trustees WA Limited (2004) 216 CLR 109; [2004] HCA 7 Armitage v Nurse [1998] Ch 241; [1997] EWCA Civ 1279 Austin v Austin (1906) 3 CLR 516; [1906] HCA 5 Bartlett v Barclays Bank Trust Co Ltd (Nos 1 & 2) [1980] 1 Ch 515 Bird v Bird (No. 4) [2012] NSWSC 648 Commissioner of Stamp Duties (Qld) v Livingston (1964) 112 CLR 12; [1965] AC 694 Crossman v Sheahan (2016) 115 ACSR 130; [2016] NSWCA 200 Dasreef Pty Ltd v Hawchar (2011) 243 CLR 588; [2011] HCA 21 Farrelly v Phillips (2017) 128 SASR 502; [2017] SASCFC 111 Fell v Fell (1922) 31 CLR 268; [1922] HCA 55 Grace v Grace [2012] NSWSC 976 Halfhide v Beaven [2003] NSWSC 1207 Juul v Northey [2010] NSWCA 211 Lang v The Queen (2023) 413 ALR 389; [2023] HCA 29 Leerac Pty Ltd v Fay [2008] NSWSC 1082 Ludwig v Jeffrey (No. 4) (2021) 394 ALR 360; [2021] NSWCA 256 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; [2008] HCA 42 Maguire v Makaronis (1997) 188 CLR 449; [1997] HCA 23 Marley v Rawlings [2015] AC 129; [2014] UKSC 2 Meehan and Others v Glazier Holdings Pty Ltd (2002) 54 NSWLR 146; [2002] NSWCA 22 Menz v Wagga Wagga Show Society Inc (2020) 103 NSWLR 103; [2020] NSWCA 65 Ramage v Waclaw (1998) 12 NSWLR 84 Re Atkinson, deceased [1971] VR 612 Re Charteris [1917] 2 Ch 379 Re Speight [1883] 22 Ch D 727 Schwanke v Alexakis [2024] NSWCA 118 Spillane v Hall [2013] NSWSC 229 Tschirn v Australian Executor Trustees Ltd [2016] SASC 149 Wright v Stevens [2018] NSWSC 548 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15 Texts Cited: G E Dal Pont, Law of Succession (3rd ed, 2021, LexisNexis) J D Heydon and M J Leeming, Jacobs' Law of Trusts in Australia (8th ed, 2016, LexisNexis) P Herzfeld and T Prince, Interpretation (2nd ed, 2020, Thomson Reuters) Category: Principal judgment Parties: Regina Turnbull (First Plaintiff) Hans Brooks (Second Plaintiff) Erna Barbara Van Luin (Third Plaintiff) Julieann Deline Groat (Fourth Plaintiff) Elizabeth Mary Fleming as executor of the Estate of Thomas John Brooks, late of Woodlands (Defendant) Representation: Counsel: Mr N Allan (Plaintiffs) Mr S Chapple SC with Mr D Yazdani (Defendant)