James v Douglas [2016] NSWCA 178

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: James v Douglas [2016] NSWCA 178 Hearing dates: 22 February 2016 Decision date: 28 July 2016 Before: Meagher JA at [1]; Leeming JA at [77]; Simpson JA at [78] Decision: 1. Grant leave to the first appellant to appeal from the orders made by McDougall J on 25 March 2015. 2. Dismiss the first appellant's appeal, by the Amended Notice of Appeal, from the orders made on 25 March 2015. 3. Grant leave to the first and second appellants to appeal from the costs orders made against them by McDougall J on 22 July 2015. 4. Dismiss the first and second appellants' appeal, by the Amended Notice of Appeal, from the costs orders made against them on 22 July 2015. 5. Order the first appellant pay the first and second respondents' costs of the appeal in order 2. 6. Order the first and second appellants pay the first and second respondents' costs of the appeal in order 4. Catchwords: WILLS & ESTATES - construction of will creating testamentary trusts - existence and scope of power to appoint and remove trustees - whether a power to appoint a replacement trustee includes a power of removal of original trustees

COSTS - where proceedings concern construction of powers conferred in relation to testamentary trust - whether departure from general rule that costs follow the event justified by "probate exception" - whether conduct of proceedings by first and second appellants involved "delinquency" justifying order for costs on indemnity basis Legislation Cited: Administration of Justice Act 1982 (UK), s 21 Conveyancing Act 1881 (UK), s 31 Succession Act 2006 (NSW), ss 27, 32 Supreme Court Act 1970 (NSW), s 101(2)(r) Trustee Act 1925 (NSW), ss 63, 70(1) Uniform Civil Procedure Rules 2005 (NSW), rr 42.1, 42.25 Wills Act 1968 (ACT), s 12B Cases Cited: Arena Management Pty Ltd (Receiver and Manager Appointed) v Campbell Street Theatre [2011] NSWCA 128; 80 NSWLR 652 BE Australia WD Pty Ltd (subject to a Deed of Company Arrangement) v Sutton [2011] NSWCA 414; 82 NSWLR 336 Cabport Pty Ltd v Marinchek (No 2) [2013] NSWCA 131 Clyne v NSW Bar Association [1960] HCA 40; 104 CLR 186 Colgate Palmolive Co v Cussons Pty Ltd [1993] 46 FCR 225 Fell v Fell [1922] HCA 55; 31 CLR 268 King v Perpetual Trustee Co (Ltd) [1955] HCA 70; 94 CLR 70 Harrison v Schipp [2001] NSWCA 13 Layer v Burns Philp Trustee Co Ltd (1986) 6 NSWLR 60 McDonald v Horn [1995] 1 All E R 961 Morgan v Moore [2000] VSC 94 Noble v Meymott (1851) 14 Beav 471; 51 ER 367 Oshlack v Richmond River Council [1998] HCA 11; 193 CLR 72 Re Buckton; Buckton v Buckton [1907] 2 Ch 406 Re Doland's Will Trusts Westminster Bank Ltd v Phillips [1970] 1 Ch 267 Re Earl of Stamford. Payne v Stamford [1896] 1 Ch 288 Re Hadley; Ex parte Hadley (1851) 5 De G & SM 67; 64 ER 1021 Re Hodges; Shorter v Hodges (1988) 14 NSWLR 698 Spiers v English [1907] P 122 Sherratt v Mountford (1873) LR 8 Ch App 928 Sydney City Council v Geftlick [2006] NSWCA 280 Winter v Rudge (1847) 15 Sim 596; 60 ER 751 Category: Principal judgment Parties: David Anthony James (First Appellant) Janina Kik (Second Appellant) Trudy James (Third Appellant) Zeta Kathleen Douglas (First Respondent Marea Gilbert (Second Respondent) Lyn Ison (Third Respondent) Angela Webber (Fourth Respondent) John Croce Palmieri (Fifth Respondent) Representation: Counsel: M A Ashhurst SC with D Krochmalik (First and Second Appellants) Appellant in person (Third Appellant) L J Ellison SC with A Isaacs (First and Second Respondents) Submitting Appearances (Third, Fourth and Fifth Respondents)