Wells v Wily [2004] NSWSC 607

Reported Decision : 50 ACSR 103 (2004) 22 ACLC 1086

New South Wales Supreme Court

CITATION : Wells v Wily [2004] NSWSC 607 HEARING DATE(S) : 21 & 28 June 2004 JUDGMENT DATE : 7 July 2004 JURISDICTION: Equity JUDGMENT OF : Austin J DECISION : Application for replacement of trustee denied

CATCHWORDS : TRUSTS - appointment of new trustee - whether corporate trustee in liquidation should be replaced as a matter of course - whether liquidator of corporate trustee has a conflict of duties to creditors and to beneficiaries - whether replacement of trustee should be declined if existing trustee's indemnity and lien is put at risk - other discretionary considerations - CORPORATIONS - corporate trustee - winding up - duty of liquidator to administer trust LEGISLATION CITED : Corporations Act 2001 (Cth), ss 477, 499 Trustee Act 1925 (NSW), s 70 Global Funds Management (NSW) Ltd v Burns Philp Trustee Co Ltd (1990) 3 ACSR 183 Grime Carter & Co Pty Ltd v Whytes Furniture (Dubbo) Pty Ltd (1983) 7 ACLR 540 Irvine v Australian Sharetrading and Underwriting Ltd (in liq) (1996) 22 ACSR 765 Jennings v Mather [1901] 1 KB 108 Letterstedt v Broers (1884) 9 App Cas 371 Miller v Cameron (1936) 54 CLR 572 CASES CITED : Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 Re Coastline Distributors Pty Ltd (1979) 4 ACLR 203 Re Crest Realty Pty Ltd (in liq) [1977] 1 NSWLR 664 Re Estate of Roberts (1983) 20 NTR 13 Re Tempest (1866) LR 1 Ch App 485 Saul v Tsung Chen Lin (No 2) [2004] NSWSC 332 Vacuum Oil Co Pty Ltd v Wiltshire (1975) 72 CLR 319 Wells v Wily [2004] NSWSC 145 Jonathan Wells (P) PARTIES : Hugh Wily (D1) Galimore Holdings Pty Ltd (in liq) (D2) FILE NUMBER(S) : SC 2480/04 COUNSEL : R N Gye (P) J K Chippindall (D) SOLICITORS : Hagan & Co (P) Andrew R Ford (D)