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LIGHT v ANDERSON
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
KIRBY P, PRIESTLEY and HANDLEY JJA
11 October 1991 and 5 June 1992, 4 August 1992
[1992] NSWCA 136
TESTATORS FAMILY MAINTENANCE — Family Provision Act — claim by
female housekeeper/companion — asserts relationship of man and wife with testator,
including sexual relations — known by reputation to neighbours and shopkeepers as
his wife — presented to children as housekeeper receiving wages — wages in fact
terminated soon after engagement — companion returns after separation to nurse
deceased during final illness — will provides for gifts to her as "companion" provided
she is "employed" by testator at the date of death — claim for provision under Act
rejected by Master Windeyer — appeal to Court of Appeal — held: (1) (per Handley
JA; Kirby P and Priestley JA reserving their opinions): The evidence did not sustain
eligibility of the companion upon the basis that she was living with testator as his wife
on a bona fide domestic basis; (2) (by the Court): The evidence did establish that she
was living in the testator's household and was dependent upon him; (3) Accordingly,
the appellant was an "eligible person" under the Act; (4) A further provision of a
legacy of $30,000 was required for her maintenance, and the Court should so order.
Consideration by the Court of the applicability of Scottish authorities on marriages
proved by cohabitation, habit and repute for claims of a de facto relationship under
the Act. Cunninghams v Cunninghams (1814) 2 Dow 482; 3 ER 939; Campbell v
Campbell (1867) LR 1, Sc and Div 182, 211 considered. Simonis v Perpetual Trustee
Co Ltd (1987) 21 NSWLR 677 (SC) referred to — held — (per Handley JA; Kirby
P dubitante): The authorities are applicable and provide guidance.
TESTATORS FAMILY MAINTENANCE — Family Provision Act claim — evidence
on appeal — decline in value of deceased's estate deterioration in financial position
of family members — held: (1) Evidence should be admitted and considered; (2) But
where executors have distributed estate assets in the face of proceedings under the
Act of which they have notice they cannot ordinarily rely on deterioration of their
position to secure the exercise of a discretion in their favour.
WORDS and PHRASES — "living... as his wife on a bona fide domestic basis".
Easterbrook v Young (1977) 136 CLR 308 applied.
Kirby P I agree in the judgment of Handley JA in terms of the concurrence of
Priestley JA. Like Priestley JA, I should prefer to withhold a concluded opinion
on whether the appellant demonstrated that she was a woman living with the
deceased as his wife "on a bona fide domestic basis". I express respectful doubt
that we should import into the meaning of that expression in a recent, local,
reforming statute, learning derived from the different social circumstances of
Scotland more than a century ago. The Scottish marriage by cohabitation was
virtually the precise equivalent of a common law marriage. De facto relationships
in modern Australian society, for which the Act provides, are much more variable
in their characteristics. They are often less enduring than a nineteenth century
marriage in Scotland and yet they are the kinds of relationship for which
Parliament has provided in s6 of the Family Provision Act 1982.
2 UNREPORTED JUDGMENTS
Typical of such cases, in the instant case there were indications in the evidence
pointing to completely opposite conclusions. The testator certainly presented a
different kind of relationship with the appellant when in the company of his
children from that displayed when in the company of others.
This is by no means surprising, given the fact that he was sixty-five years of
age when his relationship with the appellant commenced and given his religion
and relations with his children. Common experience teaches that people of the
testator's generation often retain attitudes to personal and sexual relationships
which are different from those exhibited by people of younger years whose
relationships principally occasioned the De Facto Relationships Act and the
provisions of the Family Provisions Act upon which the appellant relies.
Some of the evidence upon which the respondents relied to resist the
appellant's claim did not withstand close examination. Thus, the deceased's
daughter had an established interest in a men's outfitting business. The Master
appears to have placed considerable weight upon the fact that the testator's
clothing, even his underclothing, were provided by that daughter and not by the
appellant. However, in the circumstances, such provision was not as surprising as
otherwise it might have been. It certainly did not contradict the appellant's
evidence concerning her relationship with the testator.
In the end, I have concluded that the Master erred in rejecting the appellant's
claim that the appellant was a member of the deceased's household and was
dependent upon him as such. I certainly agree that not every live-in help attracts
the operation of s6(2)(d) of the Family Provision Act. But in the instant case, the
established nature and reputation of the relationship between the appellant and
the deceased certainly brought her within the class for whom s 6(2)(d) was
enacted. She was therefore an "eligible person".
This decisions enlivens the power to make an order for her maintenance
pursuant to s7 of the Act. In this case such an order should be made in the
exercise of the Court's discretion. See Benney v Jones (1991) 23 NSWLR 559,
569 (CA).
Like Priestley JA, I have concluded that the legacy proposed by Handley JA
is appropriate. It would not be different in this case were the matter to be dealt
with under the first, and not the second, head of claim. I also agree with the way
in which Handley JA has dealt with the additional evidence and submissions
received by this Court on and after the proceedings were first listed for judgment
on 5 June 1992. For these reasons I agree in the orders which Handley JA has
proposed.
Priestley JA I have had the benefit of reading in draft the reasons of
HandleyJA in this appeal. On the first question he deals with, I wish to reserve
my opinion. On the view I take of the second question in the appeal, it is
unnecessary for me to come to a concluded view on the first, which strikes me
as being of some difficulty. I refer particularly to the connotations at the time of
enactment of the Family Provision Act of the words in the definition of "eligible
person" s6 "a woman who, at the time of [the deceased person's] death was living
with the deceased person as his wife on a bona fide domestic basis".
On the second question, I agree with Handley JA, both as to the question of
dependence and its consequences and as to the further provision which he
suggests should be made. In the circumstances of the present case, that amount
is the same as I would have suggested should be awarded had I come to the
positive conclusion sought by the appellant to the first question.
URJ LIGHT v ANDERSON (Handley JA) 3
I thus am able to agree with the orders suggested by Handley JA without the
need, on this occasion, to examine the full meaning of the words in s6 that I have
mentioned.
I agree with the observations made by Handley JA on the matters raised by the
parties pursuant to the events of 5 June 1992.
Handley JA This is an appeal from a decision of Master Windeyer (as he then
was) in a case under the Family Provision Act. The deceased, the late Francis
George Anderson, died a widower on 26 January 1989 aged 73 years. He left an
estate valued for probate purposes at $824, 220 and a will dated 26 March 1987
in which he appointed his son and daughter executor and executrix. They proved
the will. Under the will the deceased gave the appellant should she "be in my
employ at the time of my death" a legacy of $40, 000, his Mercedes, some
household effects and the right to reside in his house rent free for three months.
The will continued:- "... all of which gifts I am making to her in appreciation of
her kindness and help to me during the period of her employment as my
companion PROVIDED that should the said CECIL OLIVE LIGHT not be in my
employ at the time of my death THEN I DIRECT that these bequests shall all
lapse and fall into the rest residue and remainder of my estate." The deceased left
the rest of his estate to his son and daughter.
The appellant brought a claim under the Act for further provision alleging that
she was an eligible person on one or other of two bases. Her primary submission
was that she was "a woman who at the time of his death was living with the
deceased person as his wife on a bona fide domestic basis" within para(a)(ii) of
the definition in s6(1). Her alternative submission was that she was a person who
was "wholly or partly dependent upon the deceased" who had been "a member
of a household of which the deceased person was a member" within para(d) of
that definition. The Master rejected both claims and dismissed the appellant's
summons with costs. Her appeal to this Court has been supported on both
grounds.
The appellant answered an advertisement by the deceased's children and
obtained a position as his housekeeper in February 1981. There was a trial period
of three or four weeks and she was then invited to remain on a permanent basis.
During the trial period she was paid $100 a week by cheque. At the time the
deceased was living at Chittaway Point near Gosford. After the trial period the
appellant told the deceased that she was a pensioner and could not continue to
receive both the full pension and $100 a week. An arrangement was then made
that she would be paid in cash.
Apart from two interruptions the appellant remained with the deceased until
his death. Early in 1984 she left and went to the United States with a male friend
for a few weeks. She said she and the deceased had quarrelled and she had
"terminated the association".
However the appellant's sister said that, by arrangement with the appellant, she
stayed with the deceased while the appellant was away and looked after him until
the appellant returned. The appellant left the deceased a second time in 1986
again, according to her, because of a quarrel. Shortly afterwards the deceased had
a mild heart attack and his daughter rang the appellant and asked her to return and
she did so.
Late in 1986 the deceased sold his house at Chittaway Point and moved to
North Rocks to be closer to his son. The appellant moved with him. The deceased
and the appellant were still living there at the time of his death.
4 UNREPORTED JUDGMENTS
She said that after about twelve months the relationship between her and the
deceased became one of man and wife. She said that she and the deceased did
sleep together on occasions and had sexual intercourse although she agreed the
deceased was "not quite" impotent. However at both Chittaway Point and North
Rocks they had separate bedrooms and on the evidence the Master concluded that
apart from odd occasions at home and when they were travelling they slept in
separate rooms.
There was evidence which the Master accepted that the appellant had the
reputation of being Mrs Anderson and was known by that name to a group of
persons which included her sister, the deceased's friends and others at Chittaway
Point, to their neighbours at North Rocks and to some shop assistants. In this
company the deceased referred to the appellant as his wife. However the Master
also found that the deceased did not treat the appellant as his de facto wife in the
presence of his son or daughter, their friends, his own sister, or his advisers.
The parties did not share their money or their assets. The appellant kept for
herself her pension payments and her wages. The deceased paid all the expenses
of the household. The appellant had one bank account in the name of Mrs
Anderson with the Advance Bank at North Rocks in which she kept a modest
sum given to her by the deceased for emergencies but her other accounts were
either in the name of Cecil Light or in the name of Colston-Ing, the surname of
her previous de facto husband. Her driver's licence remained in the name of
Light. The appellant was not consulted about the move to North Rocks and
played no part in the selection or the furnishing of the new house.
She said that when her relationship with the deceased changed from that of
housekeeper to that of de facto wife he stopped paying her wages but continued
to make regular weekly payments in cash generally of about $100 which she said
were "gifts".
However the Master accepted evidence from other witnesses that the deceased
had given her money in their presence which he described as wages. He also
found that her evidence that the regular payments were gifts and not wages was
untrue. The appellant sought to challenge these findings but the decision in
Abalos v Australian Postal Commission (1990) 171 CLR 167 and the earlier
cases there referred to require this Court to accept these findings.
The appellant gave evidence that she had always thought that the description
housekeeper was degrading and she did not like being referred to in that way
although she did not mind being referred to as a companion. Some time about
March 1987 the deceased showed her his will which described her as his
housekeeper. She asked him to alter this to companion and he did so.
The parties accepted that the decision of Kearney J in Simonis v Perpetual
Trustee Co Ltd (1987) 21 NSWLR 677 correctly stated the legal principles which
fall to be applied in determining for the purposes of this Act whether parties who
were not married to each other were living together as husband and wife on a
bona fide domestic basis.
Kearney J said at 685 - 7:
"\.. the expression... constitutes a single composite expression..., and therefore
has to be approached... as a whole... This approach, as adopted by Powell J, was
also the approach preferred by the Administrative Appeals Tribunal... I consider
that the factors referred to by Powell J, while not being regarded as a complete
test, served the purpose adequately in the present case to determine the question
of eligible person. The factors indicated by Powell J are as follows:
1. The duration of the relationship;
URJ LIGHT v ANDERSON (Handley JA) 5
2. The nature and extent of the common residence;
3. Whether or not a sexual relationship existed;
4. The degree of financial interdependence, and any arrangements for support
between or by the parties;
5. The ownership use and acquisition of property;
6. The procreation of children;
7. The care and support of children;
8. The performance of household duties;
9. The degree of mutual commitment and mutual support; 10. Reputation and
public aspects of the relationship."
After reviewing the facts of that case Kearney J said at 686 - 7:-
"T consider that the evidence establishes the indicia of a husband and wife
relationship, de facto, between the plaintiff and testatrix... I consider it to be clear
that this relationship had a quality of permanence, real emotional support for each
other and the merging of their lives,... and that this mutuality was made apparent
and held out to the testatrix's friends." Kearney J had earlier found at 685:-
"The relationship was held out as such to the friends and associates of the
testatrix, including her brother, and there was accordingly the requisite repute of
husband and wife relationship."
The Master's ultimate findings and conclusions were as follows:-
"Mutuality is an important part of such relationship and is missing in this case.
There are some facts which do support the plaintiffs claim. They are the obvious
care for each other, the occasional sleeping together, the fact that the deceased did
at least on a few occasions refer to the plaintiff as his wife, and the reputation of
the plaintiff as being Mrs Anderson at least in part of the North Rocks area. But
against that are the following matters which I find to be more significant: the
payment of wages which the plaintiff denied, the fact that the plaintiff took no
part in the selection of [the] North Rocks home and its furnishings, the fact that
all the [deceased's] clothes even underclothes were purchased by [his daughter],
the lack of family social outings involving the deceased, the plaintiff and the
deceased's children and grandchildren, the fact that tasks performed by the
plaintiff fitted under the general description of those performed by a housekeeper
or by a companion so far as driving was concerned, the keeping of separate
bedrooms, the lack of any mixing at all of financial affairs, the fact that the
deceased paid all the household expenses and accounts, the fact that the plaintiff
kept her pension, the fact that the deceased did not show her as a wife or a de
facto on his tax return or claim her as a dependent, the fact that the plaintiff kept
her driver's licence in the name of Light and bank accounts in the surname of her
previous de facto husband and lastly there is the evidence of the will itself. There
is no suggestion that the plaintiff objected to anything in it other than the word
housekeeper which was crossed out and companion inserted. That I think is what
she was. The legacy and other benefits were dependent on her remaining in
employment which is a most inappropriate expression if those involved were
living together as husband and wife."
The appellant did not contend that the Master had expressly misdirected
himself in arriving at these findings. The submission of her counsel was that the
proper conclusion from all the evidence in the light of the Master's primary
findings was that the appellant had been the de facto wife of the deceased and that
this Court could and should interfere in accordance with the principles in Warren
v Coombes (1979) 142 CLR 531.
6 UNREPORTED JUDGMENTS
Here many of the primary facts are neutral in themselves, and only take their
colour from the combination of circumstances in which they occurred. Compare
Edwards v Bairstow (1956) AC 14 at 36. The age of the parties and the late stage
in their lives when their association commenced rendered irrelevant many of the
indicia referred to by Kearney J. Moreover the disparity in their financial
positions and the deceased's children and grandchildren made financial
interdependence and the mingling of their assets inappropriate. Counsel for the
appellant also stressed that the existence of a sexual relationship, and the care and
attention which the appellant gave the deceased over a long period demonstrated
that the relationship was not purely one of employer and employee on a weekly
wage of $100 plus board. This may be accepted. The gifts of a mink coat and an
18 carat gold chain and the findings of the Master establish this.
However the Act does not treat all cohabitation between men and women with
a sexual component as de facto marriages. As Kearney J said in Simonis v
Perpetual Trustee at 686:-
"... although the living together on a bona fide domestic basis be so shown, the
question is still raised... as to whether the relationship created only a household
of convenience, or some form of liaison, or long term affair in which the plaintiff
in effect played the role of lover and the testatrix the role of the mistress."
A critical fact in my opinion is that the deceased did not hold out or treat the
appellant as his de facto wife in the presence of his own family. Any reputation
which she enjoyed as his wife was strictly limited. The issue is whether this was
a true marriage de facto revealed to some local friends, acquaintances and
strangers but concealed from the family and its advisers or a pretence of such a
marriage within a limited local circle to conceal the appellant's true role as
housekeeper companion.
Similar issues previously arose under the common law of Scotland which
allowed marriages to be contracted informally without any public ceremony or
witnesses. Thus a marriage in Scotland at that time could be proved by
"cohabitation habit and repute". See Campbell vy Campbell (1867) LR 1 Sc and
Div 182 at 211 per Lord Westbury. Proof of a Scots marriage in this way does not
differ from proof of a de facto relationship of husband and wife for the purposes
of the Act. Lord Westbury summarised the relevant principles in Campbell v
Campbell at 211:-
"... Cohabitation as husband and wife is a manifestation of the parties having
consented to contract that relation inter se. It is a holding forth to the world by
the manner of daily life, by conduct, demeanour and habit that the man and
woman who live together have agreed to take each other in marriage, and to stand
in a mutual relation of husband and wife; and when credit is given by those
among whom they live, by their relatives, neighbours, friends and acquaintances
to these representations and this continued conduct, then habit and repute arise
and attend upon the cohabitation. The parties are holden and reputed to be
husband and wife."
The nature of the reputation which must be proved was considered by the
House of Lords in Cunninghams v Cunninghams (1814) 2 Dow 482 (3 ER 939).
There the man employed the woman as his housekeeper. She later bore him
several children.
At 507 (947) Lord Eldon LC said:-
"... Where a change in the character of the connection must be operated, and
when they found the means employed for that purpose to be such as left half the
world in doubt, the servants, the relations, one half thinking one way the other
URJ LIGHT v ANDERSON (Handley JA) 7
half the other; at what time, in what circle, could it be said that there was such
a habit and repute as raised the presumption that the parties had mutually
consented to be husband and wife. He could not admit that mere cohabitation as
man and woman was a cohabitation as husband and wife." Lord Redesdale at
511, 514 (949 - 950) said:-
"There must be such a cohabitation as to induce persons to form the opinion
that the parties were married... The question then rested on the repute, and the
parties must be reputed and holden to be married - it must not be an opinion of
A in contradiction to an opinion of B, and of C in opposition to D; it must be
founded not on singular but on general opinion. That species of repute which
consisted in A B and C thinking one way, D E F another way was no evidence
on such a subject... the repute of marriage, as he had already stated, must be
general; the conduct of the parties must be such as to make almost everyone infer
that they were married."
In my opinion this Court should accept the guidance offered by these
authorities.
The appellant was not generally held out by the deceased as his wife and she
had no such general reputation. The terms of the will show that the deceased did
not regard the appellant as his de facto wife. When the will was shown to her the
appellant accepted its terms apart from her description as housekeeper. Her
entitlement to the legacies was conditional on her being in his employ when he
died.
When the deceased showed her the will, he made her a contractual offer which
she accepted by fulfilling the condition. See Schaefer v Schuhmann (1972) AC
572. After his death she received the gifts and must have done so on the only
basis on which she was entitled to them. In my opinion therefore the first
challenge to the Master's judgment fails.
The remaining question on liability is whether the appellant had been wholly
or partly dependent on the deceased. The Master rejected this claim for the
following reasons:-
"She was employed by him as a housekeeper/companion.... In other words she
was dependent upon her work for her needs not upon the deceased for them."
With respect, this reflects an unduly narrow approach to the question posed by the
statute. In Ball v Newey (1988) 13 NSWLR 489 this Court held that whether
dependency, total or partial, exists is a question of fact. In my opinion the
question of dependency in this case is not concluded by a finding that a contract
of service existed under which the appellant was entitled to board, lodging and
$100 per week. For example a doctor might employ his wife as a receptionist in
his surgery at a substantial salary but I would not have thought that this alone
negatived dependency. On the other hand I would reject the view that every
live-in employee is necessarily wholly or partly dependant on his or her
employer. In the words of Samuels JA in Ball v Newey at 492 the relevant
principles are as follows:-
"\.. dependency involves the total or partial satisfaction of need. But the need
is not restricted to the requirements of basic necessity or sustenance... Whether
dependency, total or partial, exists is a question of fact... It is not to be determined
upon theoretical considerations. It is the actual fact of dependence or reliance on
the earnings of another for support that is the test... The standard of support is set
by the parties themselves." The appellant was employed by the deceased for
nearly eight years. During this period of very high inflation her cash wage was
not increased. After March 1987 this may be explained by the deferred benefits
8 UNREPORTED JUDGMENTS
promised to her if she remained in the deceased's employment until his death.
However this does not explain the absence of earlier wage increases. The
explanation must lie in the close personal relationship established by the Master's
findings. As a result the appellant was, I infer, willing to accept a situation where
she became partially dependent on the deceased for such matters as travel,
entertainment, and dining out. But for her association with the deceased she
would have sought and obtained such entertainment etc. in the company of others
and may have been obliged to bear some or all of the cost herself. Since the
deceased met these costs she had no need to seek the wage increases to which
inflation alone would have entitled her.
While these are not basic necessities the judgment of Samuels JA in Ball v
Newey establishes that dependency for the purposes of this Act is not restricted
in that way.
I conclude therefore that the appellant was an eligible person. In the facts of
this case there is no difficulty in reaching the further conclusion that the deceased
had a moral obligation to her which was capable of bringing her case within s7
and s9 of the Act. See Benney v Jones (1991) 23 NSWLR 559.
The remaining issue is what further provision, if any, out of the estate or
notional estate of the deceased "ought" now to be made for the maintenance of
the appellant having regard to the circumstances which now exist. See s7. The
appellant submitted that the deceased's moral obligation was to provide her with
the necessary funds for the purchase of a home unit. Some reliance was placed
on a conversation between the deceased and his sister when he told her that he
was providing $40,000 for the appellant in his will "towards a bed sitter like that
of her sister". The appellant however submitted that a bed sitter would be
inadequate, and an appropriate order would provide her with a one bedroom unit
near Epping which would cost approximately $120, 000.
I have not been persuaded that the deceased owed any moral obligation to the
appellant to provide her, either for life or outright, with the means of purchasing
a home unit worth $120,000. During the twenty two months between the date of
the will and the death of the deceased the appellant not only received her wages,
and board but she also earned contractual benefits under the will. In the events
that happened these benefits were worth over $3,136 per month tax free. In my
view those benefits fully met the deceased's moral obligation to her for what she
did during this period.
However this leaves the deceased's moral obligation to the appellant arising
from the earlier period of six years when her cash wage was only $100 per week.
While the appellant derived many benefits, financial and otherwise, from her
association with the deceased during this period, she gave up the chance of
earning further moneys and saving more towards her future housing needs.
In my opinion the benefits provided by the deceased in his will did not fully
meet this earlier moral obligation. Those benefits were an inducement to her to
remain with him until he died. While in terms they reflected his gratitude for past
services he made them a reward for future services. She would only receive those
benefits if she earned them by fulfilling the condition. It seems to me that he still
had a moral obligation to the appellant for what she had done for him in the past.
If because of illness or accident, or some other reason beyond her control she had
been unable to fulfil the condition in the will she would have received nothing.
In assessing the extent of this obligation it is relevant to take into account that
the deceased paid the appellant in cash so that she could continue, perhaps
unlawfully, to receive the full age pension. Tax free earnings comprising $200 a
URJ LIGHT v ANDERSON (Handley JA) 9
fortnight plus the full age pension over six years with all found represented
substantial remuneration. The appellant may have saved substantial moneys
during this period. She was not able to produce to the Court all her bank and
building society books for this period and evidence emerged that at one stage she
had an interest bearing deposit of $10,000 which she later lent to her son because
he had been sick. The Master also found that the appellant failed to disclose all
her assets to the Court and that this failure was intentional.
The Court should also take into account that the deceased provided in his will
that the appellant was to be entitled to remain rent free in his home for three
months after his death free. In fact she enjoyed a further fifteen months rent free
occupation.
I consider that further provision should have been made by the deceased to
reflect the appellant's lost chance during this six year period of securing further
remuneration, but that in fixing the amount some allowance should be made for
the tax that by law would have been payable on such income and the loss of
pension entitlements that should have followed. In all the circumstances I would
hold that this moral obligation should be now be reflected in an order that the
appellant receive an additional legacy out of the estate or notional estate of the
deceased of $30,000.
The appellant's principal submission on the appeal was that provision should
be made out of the estate which would enable her to purchase a suitable
"bed-sitter" home unit similar to that occupied by her sister and reliance was
placed on a conversation between the deceased and his solicitor. However the
Master noted in his judgment that there was no evidence before him of the cost
or type of such accommodation and he could not find that the deceased had failed
in his moral duty to the appellant to make such provision in her favour.
Towards the conclusion of the oral argument before this Court on 11 October
1991 the President noted that if the Court were minded to allow the appeal and
make such an order it would not have the necessary evidence to enable it to do
so and the case might have to be returned to the Equity Division for further
hearing. After further discussion with counsel and immediately before the Court
reserved its judgment and adjourned the President, on behalf of the Court,
ordered that both parties should have liberty to furnish the Court with additional
evidence and written submissions relating in particular to the cost of providing
the appellant with a bed-sitter unit of the kind referred to in the evidence.
The Court received no further evidence or written submissions and in due
course on 5 June the appeal was listed for the delivery of its reserved judgment.
On that day different counsel appeared for the respondents and asked the Court
to defer delivering its judgment because the respondents still wished to avail
themselves of the liberty granted by the Court on 11 October last year. The Court
decided to grant the respondents this further indulgence, and directions were
given for the filing and service by the respondents of further affidavits relevant
to the size of the deceased's estate. The appellant was given leave to apply to
cross-examine the deponents of any such affidavits or to file further evidence or
written submissions.
The parties availed themselves of this liberty. The respondents served and filed
affidavits by both respondents together with extensive further written
submissions. This evidence revealed that the respondents had each received
$328,000 from the distribution of the deceased's estate, that the estate had been
fully distributed while these proceedings have been pending, and that for various
reasons and in various ways the personal and financial position of each of the
10 UNREPORTED JUDGMENTS
respondents had since deteriorated. In particular the current economic recession
has had an adverse effect on the values of the assets acquired by the respondents
with the moneys they had received from the distribution of the estate and the
recession has affected them financially for the worse in other ways as well. In
addition it appeared that the deceased's house at North Rocks was sold for
$228,000 being $22,000 less than its Probate valuation.
In my opinion the matters brought to the Court's attention in the further
evidence do not provide any reason for me to reconsider my earlier conclusions
that the appellant had made out a case for relief under the Act and that further
provision should be made for her benefit in the form of a legacy of $30,000.
The effect of such an order, apart from its consequences as to costs, will be to
reduce the distribution to the respondents from $328,000 each to $313,000 each.
The problems in which the respondents now find themselves as a result of having
invested the moneys received by them from their father's estate in a falling
property market are of their own making. The respondents as executors
distributed the estate to themselves in the face of the proceedings brought by the
appellant of which they had the fullest notice.
Prior to the passing of the present Act the High Court had decided in
Easterbrook v Young (1977) 136 CLR 308 at 316 "that an actual distribution does
not place the asset beyond the reach of the court's power to order maintenance".
s24 of the Family Provision Act now provides that notwithstanding the
distribution of the estate the court may make orders for provision and designate
appropriate property as notional estate of the deceased to enable those orders to
be satisfied.
However on general principles any inconvenience or hardship which legal
personal representatives may suffer as a result of having distributed the assets of
the estate to themselves in the face of a pending adverse claim could seldom, if
ever, constitute a matter which would induce a court to exercise a judicial
discretion in their favour. Indeed if the distribution of the estate had constituted
a jurisdictional bar to the making of an order under the Act in favour of the
appellant the respondents as legal personal representatives would have been
personally liable to compensate her for any loss she would thereby have
sustained. The relevant principle is that stated by Lord Romer on behalf of the
Judicial Committee in Guardian Trust of New Zealand v Public Trustee (1942)
AC 115 at 127 where he said:-
".. in accordance with the well established principles of equity... if a trustee or
other person in a fiduciary capacity has received notice that a fund in his
possession is, or may be, claimed by A, he will be liable to A if he deals with the
fund in disregard of that notice should the claim subsequently prove to be well
founded."
Accordingly I have not been persuaded by the additional evidence filed by the
respondents that the orders that I had previously proposed should be altered in
their favour. However in view of the further time which has elapsed since 5 June
Thave altered Order 4 to provide that interest on the legacy will run from that date
if it is not paid within twenty eight (28) days from the making of these orders.
In our opinion the following orders should be made:-
1. Appeal allowed with costs.
2. Set aside the order of Master Windeyer dismissing the appellant's
summons with costs.
URJ
LIGHT v ANDERSON (Handley JA) 11
na
Declare that the appellant was an eligible person in relation to the
deceased because she was a member of the same household and was
partly dependent on him.
Order that further provision be made out of the estate or notional estate
or both of the deceased for the appellant in the sum of $30,000, such
legacy to be paid within twenty eight (28) days and if not then paid to
carry interest from 5 June 1992 at the rate of 9 per cent per annum.
Liberty to the appellant to apply to the Equity Division after twenty
eight (28) days if the legacy is not paid for orders pursuant to s24 of the
Family Provision Act 1982 designating particular property as notional
estate of the deceased.
Order that the respondents pay the appellant's costs of the summons.
Order that the respondents have a certificate under the Suitors Fund Act
in respect of the costs of the appeal.
Counsel for the Appellant: CJ Birch
Counsel for the Respondent: JS Drummond (11 October 1991)
Counsel for the Respondent: J Poulos QC / RA Parsons (5 June 1992)
Solicitors for the Appellant: Joan W Miller and Associates
Solicitors for the Respondent: Lasky and Adelstein (11 October 1991)
Solicitors for the Respondent: Messrs Adelsteins (5 June 1992)