Liang by her Tutor Yuen [2012] NSWSC 365

Supreme Court New South Wales

Medium Neutral Citation: Liang by her Tutor Yuen [2012] NSWSC 365 Hearing dates: 29 March 2012 Decision date: 24 April 2012 Jurisdiction: Common Law Before: Davies J Decision: (1) Connie Yuen and Chit Ying Ng (known as Sanny Lok) jointly are appointed as trustees ("the Trustees") of a trust which shall be established for the benefit of Vanessa Liang born on 30 March 2000. (2) The Trust shall be known as the Vanessa Liang Trust and its sole purpose shall be for the sole benefit, maintenance, advancement and education of Vanessa Liang born on 30 March 2000. (3) The Trustees shall be appointed until the earlier of until 30 April 2018 or further Court Order ("the Termination Date"). (4) The balance of the Judgement Sum paid into Court in Proceedings No. 2004/00176986 (being $432,362.90) together with any earned thereon shall be paid into the Vanessa Liang Trust. (5) The Vanessa Liang Trust shall comprise the balance of the Judgement Sum paid into Court in Proceedings No. 2004/00176986 together with any interest earned thereon and from time to time thereafter ("Vanessa's funds"). (6) The Trustees shall only have the power to invest, vary and re-invest Vanessa's Funds in interest bearing terms deposits with an Australian trading bank (i.e. the Commonwealth Bank, the ANZ Bank, the National Australia Bank, Westpac Banking Corporation and St George Bank) and any entity which may replace or be created as a result of a merger of the above named banks ("the Banks"). (7) Vanessa's Funds shall be invested in the Commonwealth Bank as a term deposit for 5 years (currently subject to negotiation paying 5.6% p.a.) on a compounding interest basis and in any variation and reinvestment of Vanessa's Funds, the Trustees shall act in good faith. (8) The power to vary the Trustees shall require an Order of the Supreme Court of New South Wales or any other Court having competent jurisdiction. (9) The power to vary the Vanessa Liang Trust shall require an Order of the Supreme Court of New South Wales or any other Court having competent jurisdiction. (10) The Trustees shall establish and maintain proper accounts in book or computer from which accurately record all transactions in respect of the Vanessa Liang Trust and in each financial year. The Trustees must prepare or cause to be prepared financial statements including a Balance Sheet, Profit and Loss account and Tax Return (if a Tax Return is required by law). (11) On or prior to the Termination Date, the Trustee shall cause to be paid into Court the income and capital of the Vanessa Liang Trust pursuant to s 77(2) of the Civil Procedure Act 2005 or in the case of a further Order, as directed by the Court. Catchwords: DAMAGES - recovered by minor - where damages should be invested - application by mother to establish trust - better net return than will be received from NSW Trustee and Guardian - considerations to justify private trust. Legislation Cited: Civil Procedure Act 2005 Damages (Infants and Persons of Unsound Mind) Act 1929 Infants' Custody Settlements Act 1899 Cases Cited: AMS v AIF [1999] HCA 26; (1999) 199 CLR 160 Griffiths v Kerkemeyer (1977) 139 CLR 161 Category: Principal judgment Parties: Vanessa Liang (Applicant) Representation: Counsel: CS Ward (Applicant) Solicitors: Fabiani Solicitors (Applicant) File Number(s): 2011/401376