Highland v Labraga (No 2) [2005] NSWSC 1212

New South Wales Supreme Court

CITATION : Highland v Labraga (No 2) [2005] NSWSC 1212

HEARING DATE(S) : 11/10/05 [then written submissions]

JUDGMENT DATE : 29 November 2005

JURISDICTION : Equity Division

JUDGMENT OF : Young CJ in Eq

DECISION : First defendant to pay plaintiffs' costs.

CATCHWORDS : PROCEDURE [553]- Costs- Plaintiffs successful- Proceedings originally brought by a beneficiary of a discretionary trust- Proceedings amended to add trustee prior to hearing- Proceedings not incompetent prior to amendment- Whether plaintiffs to get whole of costs of suit or only those incurred after amendment. EQUITY [225]- Discretionary trust- Co-trustees deadlocked- Whether beneficiary had standing to bring derivative action to remove one trustee- Generally derivative action can only be brought in special circumstances- Beneficiary may bring derivative action where there is substantial impediment to trustee prosecuting proceedings.

Gandy v Gandy (1885) 30 Ch D 57 Hayim v Citibank NA [1987] AC 730 Middleton v O'Neill (1943) 43 SR (NSW) 178 CASES CITED : Morlea Professional Services Pty Ltd v Richard Walter Pty Ltd (1999) 96 FCR 217 Re Gestetner Settlement [1953] Ch 672 Yeatman v Yeatman (1877) 7 Ch D 210

Penelope Louise Highland (P1) Philip Edward Pomfret (P2) PARTIES : Julio Cesar Labraga (D1) Nowhere In Particular Pty Limited (D2)

FILE NUMBER(S) : SC 2466/05

G K Burton SC (P) COUNSEL : M Ashhurst (D1)

Dibbs Abbott Stillman (P) SOLICITORS : Kemp Strang (D1)

LOWER COURT JURISDICTION :

IN THE SUPREME COURT OF NEW SOUTH WALES EQUITY DIVISION