Jones v Hirst [2013] NSWSC 163

The trustees are justified in not seeking to recover interim distributions at this stage due to lack of legal basis and risk, are justified in notifying potential shareholder claimants as outlined, and should distribute pari passu in the event of a deficiency. Judicial advice is given accordingly.

Jurisdiction: Australia
Judgment Date: 08 March 2013
Procedural Posture: Application for Judicial Advice / Judgment on Application
Outcome: Order made giving judicial advice
Legal Topics: ['applications to Court for Advice' 'petition or Summons for Advice' 'jurisdiction Under Trustee Act 1925 S 63' 'trustee Discretion to Refuse Advice' 'categories of Trustee' 'proceedings Against Trustees' 'defending Proceedings for Removal' 'use of Trust Funds in Litigation' 'recovering Amounts Paid to Beneficiaries' 'doctrine in Re Diplock' 'obligation to Identify Potential Beneficiaries' 'distribution Deficiency in Trust Administration']

['equity' 'trusts and Trustees'] ['applications to Court for Advice' 'petition or Summons for Advice' 'jurisdiction Under Trustee Act 1925 S 63' 'trustee Discretion to Refuse Advice' 'categories of Trustee' 'proceedings Against Trustees' 'defending Proceedings for Removal' 'use of Trust Funds in Litigation' 'recovering Amounts Paid to Beneficiaries' 'doctrine in Re Diplock' 'obligation to Identify Potential Beneficiaries' 'distribution Deficiency in Trust Administration']

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Procedural Posture

Application for Judicial Advice / Judgment on Application

Legal Issues

1 ['Whether it is appropriate for trustees to defend removal proceedings and use trust funds to do so' 'Whether trustees should seek to recover amounts paid in an interim distribution' 'Whether trustees should settle or defend shareholder proceedings' 'Whether trustees have a duty to identify further potential shareholder claimants' 'Proper method of distribution if trust funds are insufficient']

Ratio Decidendi

Court Disposition

Order made giving judicial advice

Orders

['Trustees justified in not commencing recovery proceedings for interim distributions at this time' 'Trustees justified in following recommended steps to identify further potential shareholder claimants' 'Trustees justified in adopting a pari passu method of distribution in event of deficiency' 'Parties to bring...