Parkes -Linnegar & Anor v Watson [2011] NSWSC 37

Supreme Court New South Wales

Medium Neutral Citation: Parkes -Linnegar & Anor v Watson [2011] NSWSC 37 Hearing dates: 31 January 2011, 1 February 2011 Decision date: 11 February 2011 Jurisdiction: Equity Division Before: Pembroke J Decision: See paragraph 39 of the judgment Catchwords: TRUSTS & TRUSTEES - termination of trust - Rule in Saunders v Vautier - grounds for trustee withholding consent to termination

TRUSTEE - right of indemnity from trust assets - not available in respect of property that is the subject of a specific bequest to the executor on trust

MISLEADING CONDUCT - proper characterisation of conduct in totality of circumstances - not trade or commerce - not business or professional activity Legislation Cited: Trustee Act, 1925 (NSW) Fair Trading Act, 1987 (NSW) Cases Cited: Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592 Campbell v Backoffice Investments (2009) 238 CLR 304 Concrete Constructions (NSW) Pty Limited v Nelson (1990) 169 CLR 594 CPT Custodian Pty Ltd v Commissioner of State Revenue (2005) 79 ALJR Saunders v Vautier (1841) Cr & Ph 240 Shahid v Australian College of Dermatologists (2008) 168 FCR 46 Texts Cited: Heydon J D, Leeming M J, Jacobs' Law of Trusts (Butterworths, Sydney, 2006,7th Edition) Martyn J R, and Caddick N, Williams, Mortimer & Sunnucks, Executors, Administrators & Probate (Sweet & Maxwell, London 2007,19th Edition) Category: Principal judgment Parties: Gloria Joy Parkes-Linnegar - first plaintiff Robert Parkes-Linnegar - second plaintiff Michael Carl Watson - defendant Representation: Counsel: D Higgs SC with Vanessa Thomas - for the plaintiffs N Cotman SC with David Williams - for the defendant Solicitors: Jackson Lalic Lawyers - for the plaintiffs Spencer Whitby & Co - for the defendant File Number(s): 2010/146970