Kathleen Jeanne Furlong & Mark Andrew Leishman (a bankrupt) v Wise & Young Pty Ltd, Defined Properties Investment Pty Ltd & Wyse and Young International Pty Ltd; Wise & Young Pty Ltd, Defined Properties Investment Pty Ltd & Wyse and Young International Pty Ltd v Kathleen Jeanne Furlong, Gilbert Innes Leishman, Design by Kaka Pty Ltd as trustee for Kathleen Leishman Investment Trust, GIM Investments (ncle) Pty Ltd as trustee for Kathleen Leishman Investment Trust & Kim Magella Leishman; Gilbert Innes Leishman v Defined Properties Investment Pty Ltd, Wise & Young Pty Ltd, Wise & Young International Pty Ltd, George Dimitriou and Bramco Group International Pty Ltd (No 2) [2018] NSWSC 1987

Supreme Court New South Wales

Medium Neutral Citation: Kathleen Jeanne Furlong & Mark Andrew Leishman (a bankrupt) v Wise & Young Pty Ltd, Defined Properties Investment Pty Ltd & Wyse and Young International Pty Ltd; Wise & Young Pty Ltd, Defined Properties Investment Pty Ltd & Wyse and Young International Pty Ltd v Kathleen Jeanne Furlong, Gilbert Innes Leishman, Design by Kaka Pty Ltd as trustee for Kathleen Leishman Investment Trust, GIM Investments (ncle) Pty Ltd as trustee for Kathleen Leishman Investment Trust & Kim Magella Leishman; Gilbert Innes Leishman v Defined Properties Investment Pty Ltd, Wise & Young Pty Ltd, Wise & Young International Pty Ltd, George Dimitriou and Bramco Group International Pty Ltd (No 2) [2018] NSWSC 1987 Hearing dates: 12, 13, 14 September, 8, 14, 28 November, 7, 17, 18 December 2018 Decision date: 19 December 2018 Jurisdiction: Equity - Expedition List Before: Sackar J Decision: See paras [54]-[96] Catchwords: EQUITY – trusts and trustees – liability of trustee to account for mingling of trust funds and misappropriation of trust funds – onus of trustee – judgment dealing with calculation of funds misapplied by trustee

COSTS – appropriate principles and considerations – appropriate apportionment of costs to reflect outcome of judgment Legislation Cited: Civil Procedure Act 2005 (NSW) Cases Cited: Brady v Stapleton (1952) 88 CLR 322; [1952] HCA 62 Cook v Addison (1869) LR 7 Eq 466 Foskett v McKeown [2001] 1 AC 102; [2000] UKHL 29 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Kathleen Leishman Investment Trust & Kim Magella Leishman; Gilbert Innes Leishman v Defined Properties Investment Pty Ltd, Wise & Young Pty Ltd, Wise & Young International Pty Ltd, George Dimitriou and Bramco Group International Pty Ltd [2016] NSWSC 1839 KB Productions 2001 Pty Ltd (deregistered) v Kurt [2015] NSWSC 1330 KB Productions 2001 Pty Ltd (deregistered) v Kurt [2015] NSWSC 1415 KB Productions 2001 Pty Ltd v Kurt [2016] NSWSC 44 KB Productions v Kurt [2015] NSWSC 630 Raulfs v Fishy Bite Pty Ltd [2012] NSWCA 135 Re Tilley's Will Trusts; Burgin v Croad [1967] Ch 1179 Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 92 ALJR 918; [2018] HCA 43 Texts Cited: n/a Category: Consequential orders (other than Costs) Parties: Kathleen Jeanne Furlong (First Plaintiff and First Cross Defendant) Mark Andrew Leishman (a bankrupt) (Second Plaintiff) Wise & Young Pty Ltd (First Defendant, First Cross Claimant and Second Cross Defendant in the Second Cross Claim) Defined Properties Investment Pty Limited (Second Defendant, Second Cross Claimant and First Cross Defendant in the Second Cross Claim) Wyse & Young International Pty Limited (Third Defendant, Third Cross Claimant and Third Cross Defendant in the Second Cross Claim) Gilbert Innes Leishman (Second Cross Defendant and First Cross Claimant in the Second Cross Claim) Design by Kaka Pty Ltd as trustee for Kathleen Leishman Investment Trust (Third Cross Defendant) Investments (ncle) Pty Ltd as trustee for Kathleen Leishman Investment Trust (Fourth Cross Defendant) Kim Magella Leishman (Fifth Cross Defendant) George Dimitriou (Fourth Cross Defendant in the Second Cross Claim) Bramco Group International Pty Ltd (Fifth Cross Defendant in the Second Cross Claim) Representation: Counsel: D Allen (Plaintiffs, Second Cross Claimant) G Dimitriou (self represented) (Defendants, First Cross Claimants and Second Cross Defendants)