David & Ros Carr Holdings Pty Ltd v Ritossa [2024] NSWSC 1125

Supreme Court New South Wales

Medium Neutral Citation: David & Ros Carr Holdings Pty Ltd v Ritossa [2024] NSWSC 1125 Hearing dates: 15–19, 23–25 July 2024 Date of orders: 05 September 2024 Decision date: 05 September 2024 Jurisdiction: Equity Before: Richmond J Decision: See [287] Catchwords: EQUITY — Trusts and trustees — Unit trusts — Construction of trust deed — Whether individual unit holder had right to terminate the trust — Whether individual unit holder had right to trust capital CORPORATIONS — Members' rights and remedies — Oppression — Standing — Whether conduct was oppressive to, unfairly prejudicial to, or unfairly discriminatory against member — Deadlock as to the affairs of the company — Breakdown in mutual trust and confidence — Whether the trust should be wound up CONTRACTS — Formation — Whether an agreement was reached or representations were made founding an estoppel that if one party sought to exit the trust, the underlying assets of the trust would be sold CIVIL PROCEDURE — Appointment of receiver — Whether the Court should appoint a receiver to the trust pursuant to s 67 of the Supreme Court Act 1970 (NSW) or the inherent jurisdiction of the court CIVIL PROCEDURE — Pleadings — Amendment — Late application for amendment — Tendency to cause prejudice to the defendant Legislation Cited: Civil Procedure Act 2005 (NSW) Conveyancing Act 1919 (NSW) Corporations Act 2001 (Cth) Income Tax Assessment Act 1936 (Cth) Land Tax Act 1956 (NSW) Land Tax Management Act 1956 (NSW) Law of Property Act 1925 (UK) State Revenue Legislation Amendment (Tax Concessions) Bill 2006 (NSW) Supreme Court Act 1970 (NSW) Cases Cited: Accurate Financial Consultants Pty Ltd v Koko Black Pty Ltd [2008] VSCA 86 AIB Group (UK) Ltd v Martin and Another [2001] UKHL 63 Armitage v Nurse [1998] Ch 241 Australian Broadcasting Commission v Australasian Performing Rights Association Ltd (1973) 129 CLR 99 Australian Institute of Fitness Pty Ltd v Australian Institute of Fitness (Vic/Tax) Pty Ltd (No 3) [2015] NSWSC 1639 Baba v Sheehan [2019] NSWSC 1281 Basecove Pty Ltd v Dolores Lavin Management Ltd [2009] NSWSC 1315 Beaumont v Peel [2018] NSWSC 95 Beck v Henley [2014] NSWCA 201 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Byrnes v Kendle (2011) 243 CLR 253; [2011] HCA 26 Cajkusic v Commissioner of Taxation (No 2) [2006] FCAFC 164 Callide Power Management Pty Ltd v Callide Coalfields (Sales) Pty Ltd (No 5) [2016] QSC 199 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Capelli v Shepard (2010) 29 VR 242; [2010] VSCA 2 CGU Insurance Ltd v One.Tel Ltd (in liq) (2010) 242 CLR 174; [2010] HCA 26 Charles v Federal Commissioner of Taxation (1954) 90 CLR 598; [1954] HCA 16 Colyer Fehr Tallow Pty Ltd v KNZ Australia Pty Ltd [2011] NSWSC 457 Commissioner of State Taxation v Cyril Henschke Pty Ltd [2010] HCA 43; (2010) 242 CLR 508 Commissioner of Taxation v Bamford (2010) 240 CLR 481; [2010] HCA 10 Dreamstreet Lending Pty Ltd v Weiss (No 2) [2023] FCA 684 Ebrahimi v Westbourne Galleries Ltd [1973] AC 360 Effem Foods Pty Ltd v Lake Cumbeline Pty Ltd (1999) 161 ALR 599; [1999] HCA 15 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 ET-China.com International Holdings Ltd v Cheung (2021) 388 ALR 128; [2021] NSWCA 24 Exton v Extons Pty Ltd (2017) 53 VR 520; [2017] VSC 14 Federal Commissioner of Taxation v Totledge Pty Ltd [1982] FCA 64; (1982) 82 ATC 4168 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd [2001] NSWCA 97 Goozee v Graphic World Group Holdings Pty Ltd [2002] NSWSC 640 HNA Irish Nominees Ltd v Kinghorn (No 2) (2012) 290 ALR 372; [2012] FCA 228 John Holland Pty Ltd v Kellogg Brown & Root Pty Ltd [2015] NSWSC 451 Mir v Mir [2023] NSWSC 408 Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 Mount Bruce Mining Pty Ltd v Wright Prospecting (2015) 256 CLR 104; [2015] HCA 37 Munstermann v Rayward [2017] NSWSC 133 Nullagine Investments Pty Ltd v Western Australia Club Incorporated (1993) 177 CLR 635; [1993] HCA 45 O'Neill v Phillips [1999] 2 All ER 961 Onley v Catlin Syndicate Ltd as Underwriting member of Lloyd's Syndicate 2003 (2018) 360 ALR 92; [2018] FCAFC 119 Re A Solicitors' Arbitration [1962] 1 WLR 353 Re Austec Wagga Wagga Pty Ltd (in liq) [2018] NSWSC 1476 Re Dernacourt Investments Pty Ltd (1990) 20 NSWLR 588 Re Gaydon [2001] NSWSC 473 Re Ledir Enterprises Pty Ltd [2013] NSWSC 1332 Re M Dalley & Co Pty Ltd v Sims (1968) 1 ACLR 489 Re Wyndham Park Estate Pty Ltd [2019] VSC 92 Saunders v Vautier (1841) 41 ER 482 Sayden Pty Ltd v Chief Commissioner of State Revenue (2013) 83 NSWLR 700; [2013] NSWCA 111 Schreuders v Grandiflora Nominees Pty Ltd [2016] VSCA 93 Shelton v National Roads & Motorists' Association Ltd (2004) 51 ACSR 278; [2004] FCA 1393 Stephenson v Barclays Bank Trust Co Ltd [1975] 1 WLR 882 Thomas v HW Thomas Ltd [1984] 1 NZLR 686 Tomanovic v Global Mortgage Equity Corporation Pty Ltd [2011] NSWCA 104 at [199]; (2011) 288 ALR 310 Turnbull v National Roads and Motorists Association Ltd [2004] NSWSC 577 Tzavaras v Tzavaras & Sons Pty Ltd [2023] NSWCA 168 Watson v Foxman (1995) 49 NSWLR 315 Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Yunghanns v Candoora (No 2) [2000] VSC 300 Texts Cited: AJ Oakley (Ed), Trends in Contemporary Trust Law (1996, Oxford: Clarendon Press) New South Wales Legislative Assembly, Parliamentary Debates (Hansard), 17 October 2006 at 2751 Perry Herzfeld and Thomas Prince, Interpretation (2nd ed, 2020, Lawbook Co) Scott, The Law of Trusts (3rd ed, 1967, Little, Brown and Company) Category: Principal judgment Parties: David & Ros Carr Holdings Pty Ltd (ACN 630 141 909) in its personal capacity and as trustee for the Carr Family Trust (First Plaintiff) David Carr (Second Plaintiff) Rosalind Carr (Third Plaintiff)