Segal v Osborne (No 2) [2016] NSWSC 1328

Supreme Court New South Wales

Medium Neutral Citation: Segal v Osborne (No 2) [2016] NSWSC 1328 Hearing dates: On the papers Date of orders: 19 September 2016 Decision date: 19 September 2016 Jurisdiction: Equity Before: Darke J Decision: See paragraph [55]. Catchwords: EQUITY – Trusts and trustees – Powers, duties, rights and liabilities of trustees – Whether trustees entitled to recover costs of proceedings on indemnity basis – Whether trustees entitled to recover costs from trust assets – Whether trustees should first seek to recover costs from unsuccessful plaintiff – Whether trustees should then have recourse to unsuccessful plaintiff's notional share of trust assets

PROCEDURE – Costs – Third defendant applied for joinder to proceedings – No relief sought against third defendant – Limited participation in proceedings by third defendant – Whether unsuccessful plaintiff should pay third defendant's costs

PROCEDURE – Costs – Whether unsuccessful plaintiff should indemnify other beneficiary for costs paid out of other beneficiary's notional share of trust assets Legislation Cited: Civil Procedure Act 2005 (NSW), ss 3, 98 Conveyancing Act 1919 (NSW), s 66G Trustee Act 1925 (NSW), s 59(4) Supreme Court Act 1970 (NSW), s 76 Uniform Civil Procedure Rules 2005 (NSW), r 42.25 Cases Cited: Balkin v Peck (1998) 43 NSWLR 706 Bovaird v Frost [2009] NSWSC 917 Cochrane v Cochrane (1985) 3 NSWLR 403 Commonwealth Bank of Australia v Segal [2016] NSWSC 1016 Commonwealth Bank of Australia v Segal (No 2) [2015] NSWSC 656 Drummond v Drummond [1999] NSWSC 923 Fay v Moramba Services Pty Ltd [2010] NSWSC 725 Foord v Brock [2005] NSWCA 156 Frost v Bovaird [2012] FCAFC 60 Grizonic v Suttor [2011] NSWSC 471 In re Beddoe; Downes v Cottam [1893] 1 C In re Jones; Christmas v Jones [1897] 2 Ch 190 Miller v Cameron (1936) 54 CLR 572 National Trustees Executors and Agency Company of Australasia Ltd and anor v Barnes (1941) 64 CLR 268 Nissen v Grunden (1912) 14 CLR 297 Northey v Juul [2014] NSWSC 464 Registrar-General v Gill [1994] NSWSC 261; (2015) 17 BPR 33, 709 Segal v Barel (No 2) [2013] NSWCA 148 Segal v Osborne [2016] NSWSC 941 Warton v Yeo [2015] NSWSC 115 Texts Cited: J D Heydon, M J Leeming and P G Turner, Meagher, Gummow and Lehane's Equity: Doctrines and Remedies, (5th ed 2015, LexisNexis Butterworths) Category: Costs Parties: Phillip Segal (Plaintiff) Michael Osborne (First Defendant) Margaret Colleen Hole (Second Defendant) Elie Barel (Third Defendant) Representation: Counsel: A Cornish (Plaintiff) S Chapple (First and Second Defendants) C Gleeson (Third Defendant)