Ability One Financial Management Pty Limited and Anor v JB by his Tutor AB [2014] NSWSC 245

Supreme Court New South Wales

Medium Neutral Citation: Ability One Financial Management Pty Limited and Anor v JB by his Tutor AB [2014] NSWSC 245 Hearing dates: 12 August 2013, 13 and 23 September 2013, 25 November 2013 and 4 February 2014 (with written submissions) Decision date: 17 March 2014 Jurisdiction: Equity Division Before: Lindsay J Decision: Order that Short Minutes be brought in to give effect to a decision that a manager of a protected estate be allowed remuneration out of the estate on terms to be administered by the NSW Trustee. Catchwords: GUARDIANSHIP - Protected person - Financial management - Appointment of manager - Private manager - Terms of appointment - Remuneration - Regulatory regime - Financial services licence, issued by Australian Securities and Investment Commission, required - Subject to regulation by public authorities (by ASIC as licence holder, by NSW Trustee as financial manager) and supervision by Court (in exercise of Protective jurisdiction) - Public interest considerations MENTAL HEALTH - Protected person - Appointment of manager of estate - Private manager - Remuneration - Regulatory regime - Public interest considerations PRACTICE - NSW Trustee & Guardian Act - Protected person - Appointment of manager of estate - Private manager - Terms of appointment - Remuneration - Regulatory regime - Public interest considerations Legislation Cited: Administrative Decisions Review Act 1997 NSW) Corporations Act 2001 Cth chapter 5D, ss 601RAA, 601RAB(1)(b), 601RAB(2A), 601RAC (2), 601RAC (2)(d), 601RAC(2)(e), 601SAA; 601TBA(1), 601TBC, 601TBD, 601TBE; chapter 7, 760A; Part 5D.5 ss 601VAA - 601VCC, s 601RAE (4)(b); ss 601RAE (1) 601RAC (1)(a), 601RAC (2)(d)-(e), 601RAA, 601SBB(3) Corporations Regulations 2001 Cth, clause 5D.1.04 (3) and Schedule 8AD, item 4, 5D.1.04(2)(3), Schedule 8AC items 2-3, Schedule 8AD item 2 Guardianship Act 1987 NSW ss 25E, 25M(1)(b), 25M(1)(a); 25G, 25M(1) Interpretation Act 1987 NSW NSW Trustee and Guardian Act 2009 NSW ss 71, 111, 113, 114; 43-52; ss 11(2), 11(4) NSW Trustee and Guardian Regulation 2008 NSW Part 4.5, Division 1 (ss 55-62), Division 2 ss 63-70, Division 3 ss 71-84, s 115, s 64, s 115(1)(b), ss 11, 41(1)(b) and 52 Probate and Administration Act 1898 NSW, s 86A Protected Estates Act 1983 NSW, ss 77, 8 Public Trustee Act 1913 NSW s 9 Public Trustee (Further Amendment) Act 1989 NSW Trustee Companies Act 1964 NSW, s 34 Cases Cited: Adsett v Berlouis (1992) 37 FCR 201 at 208-212 Allen v Union-Fidelity Trustee Co of Australia Limited (1986) 6 NSWLR 341 at 343F-344B Baker v H [2009] EWHC B31 Beverley's Case (1603) 4 Co Rep 123b; 76 ER 1118 Boardman v Phipps [1967] 2 AC 46 Brown v Smith (1878) 10 Ch D 377, p 386 Caltex Refining Co Pty Limited v Maritime Services Board of NSW (1995) 36 NSWLR 552 at 563G-564F) CC v RAM [2012] NSWSC 1555 at [4]-[6] Christiansen v Christiansen (Queensland Court of Appeal, 2 July 1999) BC 9904473 at [18]-[19] Clay v Clay (2001) 202 CLR 410 at 428 [37] - 430 [40] and 432 [46] - 433 [49] Crout v Beissel (1909) VLR 207 at 213-214 Countess of Bective v Federal Commissioner of Taxation (1932) 47 CLR 417 at 420-423 Crossingham v Crossingham [2012] NSWSC 95 at [2], [17] - [28], [55] and [64]-[65] David by her Tutor The Protective Commissioner v David (1993) 30 NSWLR 417 at 436F-437B, 433F-434C, 436E-F, 437D-438F and 440D-E) E (Mrs) v Eve [1986] 2 SCR 388 at 412-414 and 426-427; (1986) 31 DLR (4th) 1 at 18-19 and 28-29; 411; 31 DLR (4th) 1 at 17 Estate Gowing; Application for Executor's Commission [2014] NSWSC 247 Ex parte Warren (1805) 10 Ves Jun 622; 32 ER 985 Fomsgard v Fomsgard [1912] VLR 209 at 212-213 Forster v Ridley (1864) 4 DeGJ&S 452; 46 ER 993 GDR v EKR [2012] NSWSC 1543 at [36], [37]-[42] [10]-[28]. [43] -[48] Gell v Gell (2005) 63 NSWLR 547 at 553-554 [21]-[23] Gibbons v Wright (1954) 91 CLR 423 at 437-438 Gray v Hart [2012] NSWSC 1435 at [31]-[320], [140]-[142] and [319]-[336] Griffin v Union Trustee Company of Australia Limited (1947) 48 SR (NSW) 360 at 363, 364 and 365 Guazzini v Pateson (1918) 18 SR (NSW) 275 at 285-286 Hastings) Limited v Gulliver [1967] 2 AC 134 (note) Holt v Protective Commissioner (1993) 31 NSWLR 227, 238B-D, 241G-242A Ide v Ide [2004] NSWSC 751; 184 FLR 44 at [19] and [36]-[50] In the Goods of Darke (1859) 1 Sw&Tr 516; 164 ER 839 In Re Allison Johnson & Foster Limited; ex parte Birkenshaw [1904] 2 KB 327 at 330-331 In Re Brooks (1904) 21 WN (NSW) 4 at 5-6 In re Darling [1925] SASR 262 at 265-266; In Re Duke of Norfolk's Settlement Trust [1982] Ch 61 In Re Farnham (a lunatic) (1895) 2 Ch 799 In Re Farnham (a lunatic) (No 2) [1896] 1 Ch 836 In Re Freeman's Settlement Trust (1887) 37 Ch D 148 In Re French (1868) LR 3 Ch App 317 In re Morish [1939] SASR 305 at 319-320 In Re Rhodes (1890) 44 Ch D 94 at 103, 104 In Re Weld (a person of unsound mind) (1882) 20 Ch D 451 In the Will of James Greer (1911) 11 SR (NSW) 21 at 23 In the Will of Henry Sherringham (1901) 1 SR (NSW) (B&P) 48 JJK v APK (1986) Aust Torts Reports 80-042 at 67, 881 JMK v RDC and PTO v WDO [2013] NSWSC 1362 at [38]-[50] Keech v Sandford (1726) Sel Cas Ch 61; 25 ER 223 Law Society of NSW v Harvey [1976] 2 NSWLR 154) McLaughlin v Freehill (1908) 5 CLR 858 at 862 and 863 MB v Protective Commissioner (2000) 50 NSWLR 24 at 46 [126] - 47 [129], 32 [36] - 33 [37] and 37 [64] M v M [2013] NSWSC 1495 at [10]-[20] Macedonian Orthodox Community Church St Petka Incorporated v Bishop Petar (2008) 237 CLR 66 at 93 [69] Marion's Case (Secretary, Department of Health and Community Services v JWB and SMB) (1992) 175 CLR 218 at 258-260 Mayne v Jaques (1960) 101 CLR 169, 179-183 PB v BB [2013] NSWSC 1223 at [4]-[9] Pisak v Hegedus [1983] 2 VR 386 at 388 and 392-393 Plomley v Shepherd (1896) 17 NSWR (Equity) 215 at 217 Plumpton v Burkenshaw [1908] 2 KB 572, In Re EG, a person of unsound mind not so found by inquisition [1914] 1 Ch 927 Protective Commissioner v D (2004) 60 NSWLR 513 at [12], [149]-[157] and [164]-[169] R v P (2001) 53 NSWLR 664 at 683 [63] - [65]) RL v NSW Trustee and Guardian (2012) 84 NSWLR 263 at 285 [96], 310 [212] Re D [2012] NSWSC 1006 at [46]-[62], [69]-[70] Re DJR and the Mental Health Act, 1958 [1983] 1 NSWLR 557 Re Elizabeth [2007] NSWSC 729 at [16]-[19]. Re M and the Protected Estates Act 1983 (Supreme Court of NSW, 17 February 1988) at pp 46-47; (1988) 12 NSWLR 96 Re Queensland Forests Limited (In Liquidation) [1966] Qd R 180 at 186-187 and 188. Re Sutherland [2004] NSWSC 798; 50 ACSR 297 at [11]-[17 Re Westbrooke (1848) 2 Phil 631; 41 ER 1087 Re Victoria [2002] NSWSC 647 at [31] and [36]-[40] Richards v Gray [2013] NSWCA 402 Roberts v Balancio (1987) 8 NSWLR 436 Robinson v Pett (1734) 3 P Wms 249; 24 ER 1049 Saywell v Permanent Trustee Company of NSW Limited (1931) 44 CLR 564 at 571 Secretary, Department of Health and Community Services v JWB and SMB) (1992) 175 CLR 218 at 258-260 Strangwayes v Read [1898] 2 Ch 419 W v B [2001] NSWSC 503 at [15] Walley v Walley (1687) 1 Vern 484; 23 ER 609 Willett v Futcher (2005) 221 CLR 627, 642 [49], 631 [8], 632 [12]-[13], 636 [28] and 644 [54] Texts Cited: HS Theobald, The Law Relating to Lunacy (Stevens & Sons, London, 1924); p 219-221, pp 51-53, 47 and 50, 380-382, 48 PW Young, C Croft and ML Smith, On Equity (Law Book Co, Sydney, 2009), para [6.1380] JD Heydon and MJ Leeming (ed), Jacobs' Law of Trusts in Australia (Lexis Nexis Butterworths, Australia, 7th ed, 2006), paras [1739]; paras [1704]-[1705] and [2214]-[2224] Jordan Chapters on Equity in NSW (6th ed, 1947), p 124 note (m) LI Rotman, Fiduciary Law (Thompson, Canada, 2005) at p 62 K Mason, JW Carter and GJ Tolhurst (ed), Mason and Carter's Restitution Law in Australia (Lexis Nexis Butterworths, Australia, 2nd ed, 2008), paras [819]-[820], [831], [1030] and [1040] Category: Principal judgment Parties: Ability One Financial Management Pty Limited and Anor (Plaintiff) JB by his Tutor AB (Defendant) Representation: Counsel: MJ Heath (Plaintiffs) E Brooks, solicitor, of Maurice Blackburn (Defendant) CA Webster SC (Council of the Law Society of NSW, Amicus Curiae) J Williams (Financial Services Council Limited, Amicus Curiae) C Phang (NSW Trustee & Guardian, Amicus Curiae) Solicitors: Matthews Folbigg (Plaintiffs) Maurice Blackburn (Defendant) Herbert Smith Freehills (Financial Services Council Limited) File Number(s): 2013/00214490