Woodward v Woodward [2015] NSWSC 1793

Woodward v Woodward [2015] NSWSC 1793

The first defendant was liable to account because Mrs Woodward's power to deal with her estate was suspended once the financial management order was made, the NSW Trustee's directions required the first defendant to keep proper accounts and limited his authority, the asserted gifts and financial releases did not authorise payments to himself or for his own property, and substantial funds were applied to make up a purse for his benefit rather than for Mrs Woodward's benefit. The Countess of Bective principle did not bar the claim. After allowing only credits proved to have been for Mrs Woodward's benefit, the first defendant was liable to pay $184,777.18 plus interest and to deliver up the...

Jurisdiction
Australia
Judgment Date
03 December 2015
Procedural Posture
Equity Claim for Account by Executor Against Deceased's Financial Manager / Principal Judgment After Hearing
Outcome
Judgment for the plaintiff against the first defendant in the sum of $184,777.18 plus interest; the first defendant ordered to deliver up the Holden motor vehicle; other claims dismissed save as to costs; claim against the second defendant dismissed.
Legal Topics
['account by Financial Manager' 'constructive Trust' 'fiduciary Duty' "managed Person's Power to Deal With Estate" 'nsw Trustee and Guardian Directions' 'interest Under S 100 of the Civil Procedure Act 2005 (nsw)']
['wills, Probate and Administration' 'equity' 'guardianship and Financial Management'] ['account by Financial Manager' 'constructive Trust' 'fiduciary Duty' "managed Person's Power to Deal With Estate" 'nsw Trustee and Guardian Directions' 'interest Under S 100 of the Civil Procedure Act 2005 (nsw)']

Case Brief

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Procedural Posture

Equity Claim for Account by Executor Against Deceased's Financial Manager / Principal Judgment After Hearing

Legal Issues

  1. 1 ["Whether the first defendant, as financial manager of the deceased's estate, was liable to account to the plaintiff executor for moneys received and disbursed." "Whether the equitable principle that persons entrusted with maintenance funds are not usually liable to account as trustees barred the plaintiff's claim." 'Whether the deceased could make, or the first defendant could take, a gift of $120,000 after the financial management order.' "What credits should be allowed for payments shown to have been made for the deceased's benefit." "Whether the second defendant was liable in respect of payments traced into the defendants' property."]

Ratio Decidendi

The first defendant was liable to account because Mrs Woodward's power to deal with her estate was suspended once the financial management order was made, the NSW Trustee's directions required the first defendant to keep proper accounts and limited his authority, the asserted gifts and financial releases did not authorise payments to himself or for his own property, and substantial funds were applied to make up a purse for his benefit rather than for Mrs Woodward's benefit. The Countess of Bective principle did not bar the claim. After allowing only credits proved to have been for Mrs Woodward's benefit, the first defendant was liable to pay $184,777.18 plus interest and to deliver up the...

Court Disposition

Judgment for the plaintiff against the first defendant in the sum of $184,777.18 plus interest; the first defendant ordered to deliver up the Holden motor vehicle; other claims dismissed save as to costs; claim against the second defendant dismissed.

Orders

  • ['Declare that the first defendant as financial manager of the late Ethel Marie Woodward who died on 19 July 2013 is liable to account to the plaintiff in his capacity as executor of the estate of the deceased in respect of moneys received by him as financial manager of the deceased, less proper disbursements.'...