Hay v Total Risk Management Pty Limited [2004] NSWSC 94

New South Wales Supreme Court

CITATION : Hay v Total Risk Management Pty Limited [2004] NSWSC 94 HEARING DATE(S) : 7/10/03, 8/10/03 JUDGMENT DATE : 26 February 2004

JUDGMENT OF : Burchett AJ at 1 DECISION : Refusal of disability benefit by trustee of Superannuation Fund to be set aside as relevantly unreasonable and trustee to be directed to consider the plaintiff's application properly and present a report to the court as to that consideration by a date to be fixed.

CATCHWORDS : EQUITY - superannuation trust for employees - contributory fund - discretion of trustee - duties of trustee - duty "to give properly informed consideration" to an application - permanent incapacity for suitable employment - whether part time work in a partnership with the worker's wife was suitable employment - decision such as no reasonable trustee could have reached - whether court could execute the trust - trustee ordered to consider afresh and report to the court - discussion of principles - CONSTRUCTION OF RULES - whether the expression "services are terminated" required termination unilaterally by employer or includes an acceptance of a redundancy offer by the employee - effect of nature of contributory superannuation scheme on construction of the Rules. Blaikie v SA Superannuation Board (1995) 65 SASR 85 Chammas v Harwood Nominees Pty Ltd (1993) 7 ANZ Insurance Cases 77,995 Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 Flegeltaub v Telstra Super Pty Ltd (3 April 2000, BC 200001407) Knudsen v Kara Kar [2000] NSWSC 715 Lock v Westpac Banking Corporation (1991) 25 NSWLR 593 L. Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 Maciejewski v Telstra Super Pty Ltd (1998) 44 NSWLR 601 Maciejewski v Telstra Super Pty Ltd [1999] NSWSC 341 McPhail v Doulton; In re Baden's Deed Trusts [1971] AC 424 CASES CITED : Mettoy Pension Trustees Ltd v Evans (1990) 1 WLR 1587 Minehan v AGL Employees Superannuation Pty Ltd (1998) 134 ACTR 1 R v Secretary of State for Social Services, ex parte Khan [1973] 1 WLR 187 Rapa v Patience (4 April 1985, BC 8500888) Sayseng v Kellogg Superannuation P/L [2003] NSWSC 945 Teachers' Pensions Agency v Hill [1984] 4 All ER 865 Telstra Super Pty Ltd v Flegeltaub (2000) 2 VR 276 Tonkin v Western Mining Corporation Ltd (BC 9801346, 20 April 1998), Vidovic v Email Superannuation Pty Ltd (3 March 1995, BC 9504297 at 11) Wilson v Law Debenture Trust Corp plc [1995] 2 All ER 337 Wyllie v National Mutual Life Association of Australasia Ltd (18 April 1997, BC 9703063) PARTIES : Christopher Hay (Plaintiff) Total Risk Management Pty Limited (ACN 008 644 353) (Defendant) FILE NUMBER(S) : SC 3974/01 COUNSEL : M.J. Bleasel (Plaintiff) J.W.J. Stevenson S.C. / L.P. Menzies (Defendant) SOLICITORS : Firths (Plaintiff) Allens Arthur Robinson (Defendant)