Cumming v Sands [2001] NSWSC 507

[2001] NSWSC 507 Reported Decision : [2001] ACL Rep 185 NSW 14 [2001] ACL Rep 325 NSW 225

New South Wales Supreme Court

CITATION : Cumming v Sands [2001] NSWSC 507 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 5003/98 HEARING DATE(S) : 25 May and 1 June 2001 JUDGMENT DATE : 20 June 2001

Delys Louise Cumming (P) PARTIES : Margaret Lesley Sands (D1 & XC) Peter Elliott Brand (D2 & 2XD) Robert Bruce Gordon (D2 & 3XD) JUDGMENT OF : Hamilton J

J M Atkin (P) COUNSEL : B A Coles QC and S Hughes (D1) No representation (D2, 2XD & 3XD) Walters (P) SOLICITORS : Heidtman & Co (D1) Submitting appearance (D2, 2XD & 3XD) CATCHWORDS : EQUITY [33] - General principles - Equitable charges and liens - Money expended or benefit conferred on property of another - Whether interest may be ordered on sum charged - EQUITY [171] - Trusts and trustees - Powers, duties, rights and liabilities of trustees - Indemnity, lien and reimbursement - General principles - Executors' expenses - PROCEDURE [565] - Costs - General rule - Costs out of a fund - When costs allowed out of fund - Benefit of estate - Defendant defending proceedings for own benefit rather than benefit of estate - PROCEDURE [573] - Costs - Departing from the general rule - Powers of court - Relevant principle - Whether claims distinct - SUCCESSION [254] - Executors and administrators - Title and estate of - Estate in land - Executors also devisees. LEGISLATION CITED : Supreme Court Rules 1970 Part 52A r 11 Wills Probate and Administration Act 1898 s 83 Cumming v Sands [2001] NSWSC 2 Dodds Family Investments Pty Ltd v Lane Industries Pty Ltd (1993) 26 IPR 261 Domino Hire Pty Ltd v Pioneer Park Pty Ltd (In Liq) [2000] NSWSC 313 Drummond v Drummond [1999] NSWSC 921 Ell v Cisera [2000] NSWSC 961 Hughes v Western Australian Cricket Association (1986) ATPR 40-748 J A Pty Ltd v Jonco Holdings Pty Ltd (2000) 33 ACSR 691 JDM Investments Pty Ltd v Todbern Pty Ltd [2000] NSWSC 432 Miller v Cameron (1936) 54 CLR 572 CASES CITED : Morris v Morris [1982] 1 NSWLR 61 Muschinski v Dodds (1985) 160 CLR 483 Nick Kritharis Holdings Pty Ltd (In Liq) v Gatsios Holdings Pty Ltd [2001] NSWSC 343 Nowell v Palmer (1993) NSWLR 574 Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 Ronnoc Finance Ltd v Spectrum Network Systems Ltd 19 November 1997 NSWSC Santow J unreported Waters v P C Henderson (Australia) Pty Ltd 6 July 1994 NSWCA unreported G L Certoma, The Law of Succession in NSW (3rd ed 1997) 281 - 282 B A Helmore, The Law of Real Property in NSW (2nd ed 1950) 480 Mason and Handler Wills Probate and Administration Service NSW [13,061] IIIA Scott on Trusts (4th ed 1988) ss 244 - 245 DECISION : (1) The first defendant's proper expenses as executor have the first priority in relation to the fund; (2) The executors' executorial duties had not been concluded in respect of the estate of their mother; (3) Interest should be paid on the sum in respect of which the plaintiff is entitled to a charge from the date of the first defendant's receipt of the fund; (4) The first defendant should pay the plaintiff's costs of the proceedings out of her own resources.