Re Dion Investments Pty Ltd [2014] NSWCA 367

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Re Dion Investments Pty Ltd [2014] NSWCA 367 Hearing dates: 9 September 2014 Decision date: 30 October 2014 Before: Beazley P at [1]; Barrett JA at [2]; Gleeson JA at [117] Decision: 1. Direct that a notice of appeal in the form of the draft in the white folder be filed within seven days. 2. Allow the appeal to the extent only of permitting the appellants to bring in short minutes of an order or orders under s 81(1) of the Trustee Act 1925 (NSW) in conformity with the reasons of this Court. 3. Direct that final formulation of such order or orders be dealt with on the papers unless the Court sees fit to appoint a further hearing. 4. Order that the costs of the proceedings in this Court be paid out of the assets of the Dion Family Trust. [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 AND TRUSTEES - powers of trustees - statutory jurisdiction of the court to confer powers on trustees pursuant to Trustee Act 1925 (NSW), s 81 - power to undertake a "transaction" may be conferred - whether amendment of the trust instrument is a "transaction" - whether the concept of amendment of the trust instrument as distinct from the terms of the trust is a meaningful concept - the court's jurisdiction is exercisable only when it is of the opinion that conferral of a particular power on the trustee is expedient in the management or administration of the trust property - general power of the trustee to alter the terms of the trust at will cannot be regarded as so expedient - particular specific and limited powers facilitating efficient tax management held to involve relevant expediency Legislation Cited: Income Tax Assessment Act 1997 (Cth) Jurisdiction of Courts (Cross-Vesting) Act 1987 (Qld) Supreme Court Act 1970 (NSW) Tax Laws Amendment (2010 Measures No 5) Act 2011 (Cth) Trustee Act 1925 (NSW) Trustee Act 1958 (Vic) Trusts Act 1973 (Qld) Uniform Civil Procedure Rules 2005 (NSW) Variation of Trusts Act 1958 (Eng) Cases Cited: Anker-Petersen v Anker-Petersen [2000] WTLR 581 Arakella Pty Ltd v Paton [2004] NSWSC 13; 60 NSWLR 334 Ballard v Attorney-General [2010] VSC 525; 30 VR 413 Barry v Borlas Pty Ltd [2012] NSWSC 831 Beck v Henley [2014] NSWCA 201 Cameron v Jeffress [2014] NSWSC 702 Colonial Foundation Ltd v Attorney-General (Vic) [2007] VSC 344 CPT Custodian Pty Ltd v Commissioner of State Revenue [2005] HCA 53; 224 CLR 98 Goulding v James [1997] 2 All ER 239 Hutchinson v Attorney-General [2009] VSC 551 James N Kirby Foundation Ltd v Attorney General NSW [2004] NSWSC 1153; 62 NSWLR 276 NM Superannuation Pty Ltd v Hughes (Supreme Court of New South Wales, McLelland CJ in Eq, 5 March 1996, unreported) Chapman v Chapman [1954] AC 429 Perpetual Trustees Victoria Ltd v Barns [2011] VSC 314; 7 ASTLR 349 Re Arthur Brady Family Trust; Re Tuckmores Trading Trust [2014] QSC 244 Re Bowmil Nominees Pty Ltd [2004] NSWSC 161 Re Cosaf Pty Ltd (Supreme Court of NSW, Young J, 18 December 1992, unreported) Re Crawshay (1888) 60 LT 357 Re Dion Investments Pty Ltd [2013] NSWSC 1941 Re Downshire Settled Estates [1953] Ch 218 Re Grant [2013] NSWSC 1603 Re Harvey [1941] 3 All ER 284 Re Jackson (1882) 21 Ch D 786 Re McNaughton (Supreme Court of New South Wales, Young J, 8 December 1994, unreported) Re Mair [1935] Ch 562 Re New [1901] 2 Ch 534 Re NSFT Pty Ltd [2010] NSWSC 380 Re Philips New Zealand Ltd [1997] 1 NZLR 93 Re Thomas [1930] 1 Ch 194 Re Tollemache [1903] 1 Ch 457 Re Walker [1901] 1 Ch 879 Re Z Trust [2009] CILR 593 Riddle v Riddle [1952] HCA 12; 85 CLR 202 Royal Melbourne Hospital v Equity Trustees Ltd [2007] VSCA 162: 18 VR 469 Saunders v Vautier (1841) 4 Beav 115; 49 ER 282 (affd (1841) Cr & Ph 240; 41 ER 482) Southgate v Sutton [2011] EWCA Civ 637; [2012] 1 WLR 326 Stein v Sybmore Holdings Pty Ltd [2006] NSWSC 1004; 64 ATR 325 West v Blakeway (1841) 2 Man & G 751; 133 ER 940 Westfield Qld No 1 Pty Ltd v Lend Lease Real Estate Investments Ltd [2008] NSWSC 516; 1 ASTLR 525 Texts Cited: R W White, "Trusts - an Australian perspective", [2010] NSWJSchol 10 Category: Principal judgment Parties: Dion Investments Pty Ltd (First Appellant) Leslie Frank Dion (Second Appellant) Representation: Counsel: D Barlin/R Kako (Appellants) Solicitors: Kells (Appellants) File Number(s): CA 2014/13468 Decision under appeal Citation: [2013] NSWSC 1941 Date of Decision: 2013-12-20 00:00:00 Before: Young AJ File Number(s): 2013/201038