Brady Street Developments Pty Ltd v M E Asset Investments Pty Ltd [2013] NSWSC 1755

Supreme Court New South Wales

Medium Neutral Citation: Brady Street Developments Pty Ltd v M E Asset Investments Pty Ltd [2013] NSWSC 1755 Hearing dates: 12, 13, 14, 15, 19, 20, 25 & 26 November, 2013 Decision date: 20 December 2013 Before: Pembroke J Decision: See paragraph [65] Catchwords: TRUSTS - discretionary trust - objects of discretionary power - nature of interest TRUSTS - discretionary trust - appointor - powers vis à vis trustee - control and influence - whether appointment necessary TRUSTS - discretionary trust - standing of object of discretionary power to bring claim of breach of fiduciary duty owed to trustee - special circumstances DECLARATIONS - width of power to grant declarations - genuine dispute - real not theoretical issue - wide and discretionary power - 'interest' of object of discretionary power sufficient to justify declaration SOLICITORS - conflict of interest and duty - fiduciary duty as solicitor - fiduciary duty as appointor under trust deed - realistic possibility of conflict with 'interest' under discretionary trust ESTOPPEL - assumption not reasonable - no reasonable reliance - no sound factual foundation for estoppel Cases Cited: Alexander v Perpetual Trustees WA Ltd [2004] HCA 7; (2003) 216 CLR 109 Forster v Jododex Australia Pty Ltd (1972) 127 CLR 421 Gartside v Inland Revenue Commissioners [1968] AC 553; [1968] 1 All ER 121 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; (2012) 200 FCR 296 Harris v Rothery [2013] NSWSC 1275 Ibeneweka v Egbuna [1964] 1 WLR 219 In re Skeat's Settlement; Skeats v Evans (1889) 42 Ch D 522 Johnco Nominees Pty Ltd v Albury-Wodonga (New South Wales) Corporation [1997] 1 NSWLR 43 Kennon v Spry [2008] HCA 56; (2008) 238 CLR 366 Lamru Pty Ltd v Kation Pty Ltd (1998) 44 NSWLR 432 Lewis v Condon [2013] NSWCA 204 Ramage v Waclaw (1988) 12 NSWLR 84 Spellson v George (1987) 11 NSWLR 300 Texts Cited: Jacob's Law of Trusts in Australia, 7th ed (2006) John Glover, A Challenge to established law on discretionary trusts? - Re Richstar Enterprises', (2007) 30 Australian Bar Review 70 The Hon Justice Paul Brereton AM RFD, 'A Trustee's Lot is Not a Happy One - Discretionary Trusts and Self-Managed Superannuation Funds', National Family Law Conference, 19 October 2010 Thomas & Hudson, The Law of Trusts, Oxford University Press, (2004) Category: Principal judgment Parties: Brady Street Developments Pty Ltd - plaintiff and third cross-defendant M E Asset Investments Pty Ltd - first defendant and second-cross claimant Khaled El Sayed - second defendant - first cross-claimant Sayed El-Hawache also known as Sid Hawach - first cross-defendant Victoria Lahoud - second cross-defendant Representation: Counsel: R Horsley - for the plaintiff and second and third cross-defendants H Stowe - for the defendants and cross claimants T Rickard - for the first cross-defendant Solicitors: Horowitz & Bilinsky - for the plaintiff and the second and third cross-defendants Clamenz Evans Ellis - for the first and second defendants and first and second cross-claimants Paul Bard Lawyers - for the first cross-defendant File Number(s): 2012/266799