Re Rosewood Research Pty Limited [2014] NSWSC 449

Supreme Court New South Wales

Medium Neutral Citation: Re Rosewood Research Pty Limited [2014] NSWSC 449 Hearing dates: 20 September, 9 December 2013, 14 March 2014 Decision date: 17 April 2014 Jurisdiction: Equity Division Before: Darke J Decision: The Court advises the Trustees: (1) that the Trustees are justified in defending the claims made in the main proceedings (being proceedings 2013/152562) insofar as they are set forth in Parts 1 and 2 of the pleading (being the Statement of Claim and subsequent amended versions of it), but are not presently justified in filing a cross-claim for cy-pres relief in respect of that aspect of the claim; (2) that the Trustees are justified in obtaining an opinion of counsel as to whether any of the Trustees should conduct any defence of the allegations contained in Parts 3 and 4 of the Further Amended Statement of Claim filed in the main proceedings and, if so, to what extent; (3) that the Trustees are justified in having recourse to the trust funds to pay reasonable costs incurred after 21 March 2013 in corresponding with the solicitors for the Objectors and with the Crown Solicitor on the issues of whether the Trustees are trustees of a charitable trust, the terms of any such trust, and the question of authorisation of the main proceedings pursuant to s 6(1)(a) of the Charitable Trusts Act; (4) that the Trustees are justified in having recourse to the trust funds to pay reasonable costs of defending the main proceedings, save to the extent that any such costs concern Parts 3 and 4 of the pleading (being the Statement of Claim and subsequent amended versions of it); and (5) that the Trustees are justified in having recourse to the trust funds to pay reasonable costs of obtaining an opinion of counsel as to whether any of the Trustees should conduct any defence of the allegations contained in Parts 3 and 4 of the Further Amended Statement of Claim filed in the main proceedings and, if so, to what extent. Catchwords: EQUITY - trusts and trustees - applications to court for advice - charitable trusts - proceedings against trustees for breach of trust - trustees not alleged to be personally liable - proceedings raise issues as to the terms of the trusts - whether trustees justified in defending proceedings in whole or in part - whether trustees justified in obtaining opinion of counsel as to whether breach of trust allegations should be defended - whether trustees justified in having recourse to trust funds to pay various costs Legislation Cited: Charitable Trusts Act 1993 (NSW) Trustee Act 1925 (NSW) Cases Cited: Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar The Diocesan Bishop of Macedonian Orthodox Diocese of Australia and New Zealand (2008) 237 CLR 66; [2008] HCA 42 Re Australian Pipeline Ltd [2006] NSWSC 1316 Category: Principal judgment Parties: Rosewood Research Pty Limited (first plaintiff) Pathway Properties Pty Limited (second plaintiff) Asia Pacific Technologies Pty Limited (third plaintiff)