Craven-Sands & Ors v Koch & Anor [2000] NSWSC 374

Reported Decision : [2000] 34 ACSR 341

New South Wales Supreme Court

CITATION : Craven-Sands & Ors v Koch & Anor [2000] NSWSC 374 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 1879 of 1999 HEARING DATE(S) : 10,11,12,13 and 26 April 2000 JUDGMENT DATE : 19 May 2000

Maaike Craven-Sands (First Plaintiff) Colin Craven-Sands (Second Plaintiff) Peter Craven-Sands (Third Plaintiff) PARTIES : Johannes Craven-Sands (Fourth Plaintiff) William Craven-Sands (Fifth Plaintiff) Marianna Craven-Sands (Sixth Plaintiff) Beryl Anne Knox Koch (First Defendant) Alwin Rose Koch (Second Defendant) JUDGMENT OF : Bergin J

COUNSEL : JR Wilson (Plaintiffs) P Blackburn-Hart (Defendants) SOLICITORS : Teece Hodgson & Ward (Plaintiffs) Conway MacCallum (Defendants) CATCHWORDS : Application for removal of trustees - Authorization by trustee/shareholders of payments of directors' fees to trustee - Conflict of interest and duty - Conduct less than standard expected of ordinary prudent person of business - Breaches of trust - Application to excuse trustees from personal liability pursuant to s 85(2) of Trustee Act 1925 LEGISLATION CITED : Trustee Act 1925 Companies Act 1961 In Re Dover Coalfield Extension, Limited (1908) 1 Ch 65 Smith v Langford (1844) 2 Beav 362. 48 ER 1221 Nissan v Grunden (1912) 14 CLR 297 In Re Sykes: Syles v Sykes (1909) 2 Ch 241 In MacAdam. Re Dallow v Codd (1946) 1 Ch 73 Waterhouse v Waterhouse & Ors (1998) 46 NSWLR 449 Aberdeen Railway Co v Blaikie Brothers (1854) 1 Macq. 461 Bray v Ford [1896] AC 44 Williams v Barton (1927) 2 Ch 9 Phipps v Broadman [1967] 2 AC 46 Breen v Williams (1995-1996) 186 CLR 71 CASES CITED : Fouche v The Superannuation Fund Board (1952) 88 CLR 609 Re Chapman; Cocks v Chapman [1896] 2 Ch 763 Hartigan Nominees P/L v Rydge (1992) 29 NSWLR 405 Pateman v Heyen (1993) 33 NSWLR 188 McMahon v Cooper (1904) 4 SR (NSW) 433 Guazzini v Pateson (1918) NSW SR 275 Miller v Cameron (1936) 54 CLR 572 Letterstedt v Broers 9 App Cas 371 Forster v Davies 4 De G.F. & J. 133 In Re Keeler's Settlement Trusts (1981) 1 Ch 156 In Re Masters Decd (1953) 1 WLR 81 Jacobs Law of Trusts 6th Edition DECISION : Order for Removal. Application pursuant to s 85(2) Trustee Act dismissed.