KRNJULAC v LINCU [2015] NSWCA 367

KRNJULAC v LINCU [2015] NSWCA 367

The primary judge was not entitled to decide the case against the appellants on the basis that they had knowledge of the breach of trust or were constructive trustees where those matters were not pleaded or run at trial. Because the appellants admitted they were volunteers, there was no pleaded basis for requiring them to answer a case about knowledge at the time of the mortgage, and no disputed evidence that they derived traceable benefit from the mortgage proceeds. The orders imposing monetary liability on the appellants had to be set aside, while orders requiring transfer of their interests in the church land to the trustees were appropriate.

Jurisdiction
Australia
Judgment Date
02 December 2015
Procedural Posture
Appeal / Application for Leave to Appeal and Appeal From Orders of the Equity Division of the Supreme Court of NSW
Outcome
Leave to appeal granted to the extent necessary; appeal allowed; impugned orders set aside and substituted orders made.
Legal Topics
['natural Justice' 'pleadings' 'breach of Trust' 'constructive Trust' 'liability of Volunteers to Account for Trust Property Obtained in Breach of Trust' 'charitable Trusts']
['administrative Law' 'equity' 'trusts'] ['natural Justice' 'pleadings' 'breach of Trust' 'constructive Trust' 'liability of Volunteers to Account for Trust Property Obtained in Breach of Trust' 'charitable Trusts']

Case Brief

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Procedural Posture

Appeal / Application for Leave to Appeal and Appeal From Orders of the Equity Division of the Supreme Court of NSW

Legal Issues

  1. 1 ['Whether findings and relief against the appellants went beyond the case pleaded and run at trial.' 'Whether the appellants, as volunteers who received trust property, were liable beyond transferring their remaining interests in the property or traceable proceeds.' 'Whether leave to appeal should be granted and Mr Laza Krnjulac joined as fifth respondent.']

Ratio Decidendi

The primary judge was not entitled to decide the case against the appellants on the basis that they had knowledge of the breach of trust or were constructive trustees where those matters were not pleaded or run at trial. Because the appellants admitted they were volunteers, there was no pleaded basis for requiring them to answer a case about knowledge at the time of the mortgage, and no disputed evidence that they derived traceable benefit from the mortgage proceeds. The orders imposing monetary liability on the appellants had to be set aside, while orders requiring transfer of their interests in the church land to the trustees were appropriate.

Court Disposition

Leave to appeal granted to the extent necessary; appeal allowed; impugned orders set aside and substituted orders made.

Orders

  • ['To the extent necessary, grant the appellants leave to appeal from the orders made by Lindsay J on 30 May 2014 and 16 December 2014.' 'Grant leave to the appellants to file an amended notice of appeal, adding Mr Laza Krnjulac as the fifth respondent.' 'Appeal allowed.' 'Set aside Orders 5 to 14 inclusive of the...