Hartley v Woods [2017] NSWSC 1420

Supreme Court New South Wales

Medium Neutral Citation: Hartley v Woods [2017] NSWSC 1420 Hearing dates: 14 and 15 June, 25 and 26 July, and 2 September 2016 Decision date: 20 October 2017 Before: Lindsay J Decision: Subject to allowing the parties an opportunity to make submissions about the form of orders to be made and costs: (1) Administration of the estate of the deceased is to be granted to the third plaintiff with the will of the deceased annexed.

(2) The defendant is to pay equitable compensation to the estate of the deceased for moneys received by him from the deceased, but not for payments made by the deceased to third parties.

(3) The claim of the first and second plaintiffs to a beneficial interest in estate property, based on an alleged estoppel, is to be dismissed, but they are each to receive a legacy of $40,000 ($80,000 in total) from designated notional estate of the deceased, being a term deposit held by the defendant. Catchwords: Equity – Fiduciary Obligations – Breach – Depends on scope of obligations – Obligations proscriptive – Fiduciary accountable for property received in breach of obligations – Not liable to account for property acquired by others operating outside scope of fiduciary obligations.

Equity – Under Influence – Relationship of Influence – Presumption of Undue influence – No rebuttal of presumption – Receipt of property by dominant party – Liability to account for property received – Nature and extent of liability

Succession – Family provision – Eligible persons – Adult claimants – Dependent members of same household as deceased – Relief granted. Legislation Cited: Succession Act 2009 NSW Uniform Civil Procedure Rules 2005 NSW Cases Cited: Andrew v Andrew (2012) 81 NSWLR 656 Breen v Williams (1995) 186 CLR 71 Bridgewater v Leahy (1998) 194 CLR 457 Chan v Zacharia (1984) 154 CLR 178 Churton v Christian (1988) 13 NSWLR 241 Countess of Bective v Federal Commissioner of Taxation (1932) 47 CLR 417 Cowen v Piggott [1989] 1 QdR 41 Delaforce v Simpson-Cook (2010) 78 NSWLR 483 Hewitt v Gardner [2009] NSWSC 1107 Hospital Products Limited v United States Surgical Corporation (1984) 156 CLR 41 Johnson v Buttress (1936) 56 CLR 113 Maguire v Makaronis (1997) 188 CLR 449 Pilmer v Duke Group Limited (In Liq) (2001) 207 CLR 165 Quek v Beggs (1990) 5 BPR [97405] Re Coomber [1911] 1 Ch 723 Re Fulop (1987) 8 NSWLR 679 Reichel v Magrath (1889) 14 App Cas 259 Spellson v George (1992) 26 NSWLR 66 Stivactas v Michaletos (No 2) [1994] ANZ Conv R 252; (1993) Aust Contract R 90-031; (1993) NSWLR Conv R 55-683; BC 9301874 per Mahoney JA The Pontifical Society for the Propagation of the Faith v Scales (1962) 107 CLR 9 Vadasz v Pioneer Concrete (SA) Pty Limited (1995) 184 CLR 102 Texts Cited: Meagher, Gummow and Lehane, Equity: Doctrines And Remedies (5th ed), paragraphs [5.270], [5.275]; [5.050], [5.325]-[5.440]