Paloto Pty Limited v Herro [2015] NSWSC 445

Supreme Court New South Wales

Medium Neutral Citation: Paloto Pty Limited v Herro [2015] NSWSC 445 Hearing dates: 10 April 2015 Date of orders: 10 April 2015 Decision date: 10 April 2015 Jurisdiction: Equity Division Before: Darke J Decision: Proceedings dismissed. Catchwords: EQUITY – trusts and trustees – trustee seeks conferral of power, or authorisation, to vary the vesting date in respect of trust property – vesting of trust property would give rise to capital gains tax liabilities for beneficiaries – scope of inherent jurisdiction of Court to sanction deviations from the terms of trust – whether an emergency has arisen in the course of administration that needs to be resolved to preserve trust property – held, not an appropriate case for exercise of inherent power Legislation Cited: Chapman v Chapman [1954] AC 429 Gartside v Inland Revenue Commissioners [1968] AC 553 Gonzales v Claridades [2003] NSWCA 227; (2003) 58 NSWLR 21 Harold Alfred Templeton v The Leviathan Proprietary Limited (1921) 30 CLR 34 In re Crago; Crago v Crago (1908) 8 SR (NSW) 269 In re Crawshay; Dennis v Crawshay (1888) 60 LT 357 In re Morrison; Morrison v Morrison [1901] 1 Ch 701 In Re New; In Re Leavers; In Re Morley [1901] 2 Ch 534 In re Strang (1941) 41 SR (NSW) 114 In re Tollemache [1903] 1 Ch 457 In re Tollemache [1903] 1 Ch 955 In Re Toohey; Freehill v Toohey (1906) 6 SR (NSW) 538 Re Dion Investments Pty Ltd [2014] NSWCA 367 Re Hazeldine's Trust [1908] 1 Ch 34 Re Jackson (1882) 21 Ch D 786 Saunders v Vautier (1841) 4 Beav 115; 49 ER 282 Tickle v Tickle (1987) 10 NSWLR 581 Cases Cited: Chapman v Chapman [1954] AC 429 Gartside v Inland Revenue Commissioners [1968] AC 553 Gonzales v Claridades [2003] NSWCA 227; (2003) 58 NSWLR 21 Harold Alfred Templeton v The Leviathan Proprietary Limited (1921) 30 CLR 34 In re Crago; Crago v Crago (1908) 8 SR (NSW) 269 In re Crawshay; Dennis v Crawshay (1888) 60 LT 357 In re Morrison; Morrison v Morrison [1901] 1 Ch 701 In Re New; In Re Leavers; In Re Morley [1901] 2 Ch 534 In re Strang (1941) 41 SR (NSW) 114 In re Tollemache [1903] 1 Ch 457 In re Tollemache [1903] 1 Ch 955 In Re Toohey; Freehill v Toohey (1906) 6 SR (NSW) 538 Re Dion Investments Pty Ltd [2014] NSWCA 367 Re Hazeldine's Trust [1908] 1 Ch 34 Re Jackson (1882) 21 Ch D 786 Saunders v Vautier (1841) 4 Beav 115; 49 ER 282 Tickle v Tickle (1987) 10 NSWLR 581 Texts Cited: J D Heydon and M J Leeming, Jacobs' Law of Trusts in Australia (7th ed 2006, LexisNexis) Category: Principal judgment Parties: Paloto Pty Limited (plaintiff)