Northern Sydney and Central Coast Area Health & anor v Attorney-General for New South Wales & 7 ors [2008] NSWSC 1223

Northern Sydney and Central Coast Area Health & anor v Attorney-General for New South Wales & 7 ors [2008] NSWSC 1223

The State scheme is preferred under the cy-pres doctrine as its purposes—providing free rehabilitation care to public patients—are closer to the original trust objective of assisting 'distressed subjects of the British Empire,' which is interpreted to require an element of financial hardship. The RSL scheme would primarily benefit private, fee-paying patients, which does not fit the essential character of the original beneficiaries. Approval of the State scheme is subject to certain conditions being satisfied.

Parties
First Plaintiff: Northern Sydney and Central Coast Area Health Service; Second Plaintiff: State of New South Wales; First Defendant: Attorney-General for New South Wales; Second Defendant: North Sydney Council; Fourth Defendant: Commonwealth of Australia; Fifth Defendant: RSL (NSW); Sixth Defendant: Rowe, White and Perrin, trustees of RSL Welfare and Benevolent Institution; Seventh Defendant: RSL Lifecare Ltd; Ninth Defendant: St Vincents & Mater Health Sydney Ltd; Tenth Defendant: Sisters of Charity Healthcare Australia Ltd
Jurisdiction
Australia
Judgment Date
20 November 2008
Procedural Posture
Charitable Trust Cy Pres Application / Determination of Scheme to Replace Failed Trust
Outcome
Direction that trustee's scheme (the State scheme) be approved subject to conditions.
Legal Topics
Charitable Trusts, Cy Pres Doctrine, Trustee Powers, Meaning of 'distressed' in Charitable Context
Trusts and Trustees Equity Charitable Trusts Cy Pres Doctrine Trustee Powers Meaning of 'distressed' in Charitable Context

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Parties

Northern Sydney and Central Coast Area Health Service

First Plaintiff

State of New South Wales

Second Plaintiff

Attorney-General for New South Wales

First Defendant

North Sydney Council

Second Defendant

Commonwealth of Australia

Fourth Defendant

RSL (NSW)

Fifth Defendant

Rowe, White and Perrin, trustees of RSL Welfare and Benevolent Institution

Sixth Defendant

RSL Lifecare Ltd

Seventh Defendant

St Vincents & Mater Health Sydney Ltd

Ninth Defendant

Sisters of Charity Healthcare Australia Ltd

Tenth Defendant

Procedural Posture

Charitable Trust Cy Pres Application / Determination of Scheme to Replace Failed Trust

Legal Issues

  1. 1 Which proposed scheme is nearest to original trust purposes under cy-pres doctrine
  2. 2 Meaning of 'distressed subjects of the British Empire without regard to race or creed' in the original trust
  3. 3 Appropriateness of sale of trust property vs continued use on current site

Ratio Decidendi

The State scheme is preferred under the cy-pres doctrine as its purposes—providing free rehabilitation care to public patients—are closer to the original trust objective of assisting 'distressed subjects of the British Empire,' which is interpreted to require an element of financial hardship. The RSL scheme would primarily benefit private, fee-paying patients, which does not fit the essential character of the original beneficiaries. Approval of the State scheme is subject to certain conditions being satisfied.

Court Disposition

Direction that trustee's scheme (the State scheme) be approved subject to conditions.

Orders

  • Subject to satisfaction of specific conditions regarding sale of trust property, vesting of Ryde Hospital land in the Graythwaite trust, and obtaining approvals, the State scheme is to be carried into effect.
  • If conditions are not satisfied, the matter is reserved for further consideration.