Valofo Pty Ltd (Administrators Appointed) v PILT Nominees Pty Ltd [2011] NSWSC 134

Supreme Court New South Wales

Medium Neutral Citation: Valofo Pty Ltd (Administrators Appointed) v PILT Nominees Pty Ltd [2011] NSWSC 134 Hearing dates: 25 February 2011 Decision date: 25 February 2011 Before: Rein J Decision: PILT Nominees Pty Ltd to be removed as trustee of the Prime Indexed Lease Trust and Baltarna Pty Ltd to be removed as trustee of the Baltarna Trust. Liquidators of Valofo Pty Ltd to be appointed as trustees of the Prime Indexed Lease Trust and the Baltarna Trust. The fourth defendant's notice of motion dated 25 February 2011 is dismissed. First, second, and third defendants to pay the plaintiff's costs of the proceedings. Fourth defendant to pay the plaintiff's costs of the fourth defendant's notice of motion. Catchwords: EQUITY - trusts and trustees - whether liquidators of a corporate beneficiary can be appointed trustees of the trust - whether there is a conflict of interest in appointing the liquidators of a sole beneficiary as trustee - whether the retiring trustees have an interest in the identity of the new trustees and whether they should be heard on the appointment PROCEDURE - costs - whether the defendants should pay the plaintiff's costs of the notices of motion Legislation Cited: Trustee Act 1925 (NSW) Cases Cited: Australian Securities and Investments Commission v Westpoint Corporation Pty Ltd [2006] FCA 135; (2006) 227 ALR 623 Cooper v Federal Commissioner of Land Tax (1941) 65 CLR 320 Dreiberg v Bettles and Carter as Liquidators of Corindi Beach Developments Pty Ltd [2007] NSWSC 1204 Fung Ping Shan v Tong Shun [1918] AC 403 In the matter of PILT Nominees Pty Ltd - Londish v Seller & ors [2011] NSWSC 74 Miller v Cameron (1936) 54 CLR 572 Wells v Wily [2004] NSWSC 607; (2004) 183 FLR 284 Category: Principal judgment Parties: Valofo Pty Ltd (Administrators Appointed)(plaintiff) PILT Nominees Pty Ltd (first defendant) Baltarna Pty Ltd (second defendant) Ross Seller (third defendant) Peter Londish (fourth defendant) Representation: Counsel: F Gleeson SC; D Sulan (plaintiff) D Raphael (first, second and third defendants) T G Hartmann (solicitor for the fourth defendant) Solicitors: O'Neill Partners - Commercial Lawyers (plaintiff) Atanaskovic Hartnell (first, second and third defendants) Hartmann & Associates Solicitors (fourth defendant) File Number(s): SC 2009/291650