Beck v Henley [2014] NSWCA 201

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Beck v Henley [2014] NSWCA 201 Hearing dates: 2 May 2014 Decision date: 27 June 2014 Before: Beazley P at [1]; Leeming JA at [2]; Sackville AJA at [97] Decision: Appeal dismissed with costs. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: TRUSTS - rights of beneficiaries - one of two adult beneficiaries directs trustee to transfer half of a parcel of 50% of shares in a private company - other beneficiary opposes transfer - nature of "rule" in Saunders v Vautier - nature of power of adult beneficiary with absolute vested and indefeasible interest in trust property - exception where "special circumstances" - irrelevance of trust being a trust for sale with a power of postponement - irrelevance of duty of impartiality - no quantified prejudice to remaining beneficiary - no relevant prejudice merely in splitting parcel of shares with a measure of control - no sound basis to depart from existing line of long-standing authority in relation to parcels of shares

TRUSTS - trusts and trustees - judicial advice under s 63 Trustee Act 1925 (NSW) - nature and history of application for advice - appropriateness of review of long-standing authorities on an application for advice - nature of appeal from giving of judicial advice Legislation Cited: Consolidated Equity Rules 1902 (NSW), r 313 Supreme Court Act 1970 (NSW), s 101 Trust Property Act 1862 (26 Vic No 12), s 30 Trustee Act 1898 (NSW), s 20 Trustee Act 1925 (NSW), ss 5, 63 Uniform Civil Procedure Rules 2005 (NSW), rr 42.25, 55.2 Cases Cited: Associated Alloys v ACN 001 452 106 Pty Ltd [2000] HCA 25; 202 CLR 588 Attenborough v Solomon [1913] AC 76 Barnes v Rowley (1797) 3 Ves Jr 305; 30 ER 1024 Beck v Weinstock [2013] HCA 15; 87 ALJR 570 Brady v Stapleton (1952) 88 CLR 322 CPT Custodian Pty Ltd v Commissioner of State Revenue [2005] HCA 53; 224 CLR 98 Gough v Strahl [2013] NZHC 3184 Goulding v James [1997] 2 All ER 239 Ho Yuen Ki Winnie v Hotung [2010] HKCFI 546 Ho Yuen Ki Winnie v Hotung [2010] HKCFI 605 House v The King (1936) 55 CLR 499 In re Marshall [1914] 1 Ch 192 In re Mockett's Trusts (1860) 6 Jur (NS) 142 In re Pugh [1887] WN 143 In re the Trustee Act; In re Burger Estate [1949] 1 WWR 280 Lloyds Bank Ltd v Duker [1987] 1 WLR 1324; [1987] 3 All ER 193 Love v L'Estrange (1727) 5 Bro PC 59; 2 ER 532 Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar [2008] HCA 42; 237 CLR 66 Manfred v Maddrell (1950) 51 SR (NSW) 95 Pagels v MacDonald (1936) 54 CLR 519 Re Barton [2002] EWHC 264; [2002] WTLR 649 Re Campeau Family Trust (1984) 18 DLR (4d) 159 Re Campeau Family Trust (1984) 44 OR (2d) 549 Re International Contract Co (1872) 7 Ch App 485 Re Mitchell (1913) WN (NSW) 137 Re O'Grady (1900) 26 VLR 171 Re Sandeman's Will Trusts [1937] 1 All ER 368 Re Weiner's Will Trusts [1956] 1 WLR 579; [1956] 2 All ER 482 Saunders v Vautier (1841) Cr & Ph 240; 41 ER 482 Stephenson v Barclays Bank Trust Co Ltd [1975] 1 All ER 625 Sydney Futures Exchange Ltd v Australian Stock Exchange Ltd (1995) 56 FCR 236 The Age Company Ltd v Liu [2013] NSWCA 26; 82 NSWLR 286 Weinstock v Beck [2013] HCA 14; 87 ALJR 554 Wester v Borland [2007] EWHC 2484 White v Shortall [2006] NSWSC 1379; 68 NSWLR 650 Texts Cited: Cockshott & Lamb, The Statutes of New South Wales, 1898, vol 2 A Dean, "When does an Executor become a Trustee?" (1935) 1 Res Judicata 92 W Hohfeld, Fundamental Legal Conceptions As Applied In Judicial Reasoning (Lawbook Exchange reprint, 2000) T Lewin, A Practical Treatise on the Law of Trusts and Trustees (Maxwell, 1837) P Matthews, "The Comparative Importance of the Rule in Saunders v Vautier" (2006) 122 LQR 266 Scott and Ascher on Trusts (5th ed, 2008) G Thomas and A Hudson, The Law of Trusts (2nd ed, Oxford University Press, 2010) D Waters, Waters' Law of Trusts in Canada (Carswell, 4th ed 2012) Category: Principal judgment Parties: Tamar Rivqa Beck (Appellant) Michael Victor Henley in his capacities as administrator cta of the estate of the late Hedy Jadwiga Weinstock and trustee under the will of the late Hedy Jadwiga Weinstock (First Respondent) Amiram David Weinstock (Second Respondent) Representation: Counsel: Bret Walker SC / G Colyer (Appellant) S Robertson (First Respondent) I Jackman SC / J Hmelnitsky SC / D Hume (Second Respondent) Solicitors: McCabes Lawyers (Appellant) TressCox Lawyers (First Respondent) Baker & McKenzie Lawyers (Second Respondent) File Number(s): 2013/273638 Decision under appeal Citation: [2013] NSWSC 975 Date of Decision: 2013-07-22 00:00:00 Before: Slattery J File Number(s): 2012/75034