Welker v Rinehart (No 10) [2012] NSWSC 1330

Supreme Court New South Wales

Medium Neutral Citation: Welker v Rinehart (No 10) [2012] NSWSC 1330 Hearing dates: Wednesday, 12 September 2012 Decision date: 31 October 2012 Before: Brereton J Decision: Defendants' application for summary dismissal dismissed. Plaintiffs granted leave to amend, save in one respect. Catchwords: PRACTICE & PROCEDURE - application for summary dismissal - whether cause of action to remove trustee survives vesting of trust - test for summary dismissal - whether case is hopeless, without prospects of success or doomed to failure

TRUSTS - application for summary dismissal of application to remove trustee - where trust has vested after application for removal - nature of duties of a trustee of a vested trust - grounds for removal of a trustee - whether safety of the trust is the central consideration - court's interest in the due administration of the trust - whether it is inevitable that case for removal must fail

TRUSTS - order for production of trust documents and accounts - application for summary dismissal - whether plaintiffs entered into deed releasing their right to make such a claim

PRACTICE & PROCEDURE - application for leave to amend statement of claim - where new facts are alleged to have occurred after the original pleading - where plaintiff seeks to add new grounds of relief - whether proposed pleading articulates cause of action for equitable compensation Cases Cited: Welker & Ors v Rinehart & Anor (No 2) [2011] NSWSC 1238 Welker & Ors v Rinehart & Anor (No 4) [2011] NSWSC 1636 Rinehart v Welker [2012] NSWCA 95 Wickstead v Browne [1992] NSWCA 272; (1992) 30 NSWLR 1 Re Wrightson [1908] 1 Ch 789 Fay v Moramba Services Pty Limited [2009] NSWSC 1428 Guazzini v Paterson (1918) 18 SR (NSW) 275 Letterstedt v Broers (1884) 9 App Cas 371 Miller v Cameron [1936] HCA 13; (1936) 54 CLR 572 Craven-Sands v Koch [2000] NSWSC 374; (2000) 34 ACSR 341 Category: Interlocutory applications Parties: Hope Rinehart Welker (First plaintiff) John Langley Hancock (Second plaintiff) Bianca Hope Rinehart (Third plaintiff) Gina Hope Rinehart (First Defendant) Ginia Hope Frances Rinehart (Second defendant) Representation: Counsel: Dr A Bell SC w Mr DFC Thomas (Plaintiffs) Mr D G Russell QC w M L Roberton & Mr C Bova (First defendant) Mr F Kunc SC w Mr W Flynn (Second defendant) Solicitors: Johnson Winter & Slattery (Plaintiffs) Corrs Chambers Westgarth (First defendant) Gadens (Second defendant) File Number(s): 2011/285907