ADAMS AND ORS v ALEMITE LUBREQUIP PTY LTD AND ORS [1994] NSWCA 1

ADAMS AND ORS v ALEMITE LUBREQUIP PTY LTD AND ORS [1994] NSWCA 1

Price Waterhouse held the funds on trust for the investors and was not contractually entitled to pay out the money to the promoter until specified conditions (including bank consent and rental acceleration notice) were satisfied. As these were not met, the payments constituted a breach of trust, and Price Waterhouse was not relieved under Trustee Act 1925, s85 due to unreasonable conduct.

Parties
Respondent: Adams; Appellant: Alemite Lubrequip Pty Ltd; Appellant: Price Waterhouse; Mrs Roche
Jurisdiction
Australia
Judgment Date
30 September 1994
Procedural Posture
Appeal / Judgment of Court of Appeal Affirming Primary Judge's Findings, Liability Determined, Damages Remitted
Outcome
Appeal dismissed with costs; matter remitted for assessment of damages.
Legal Topics
Breach of Trust, Relief Under Trustee Act 1925 S85, Conditions Precedent and Subsequent
Trusts Contract Breach of Trust Relief Under Trustee Act 1925 S85 Conditions Precedent and Subsequent

Case Brief

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Parties

Adams

Respondent

Alemite Lubrequip Pty Ltd

Appellant

Price Waterhouse

Appellant

Mrs Roche

Procedural Posture

Appeal / Judgment of Court of Appeal Affirming Primary Judge's Findings, Liability Determined, Damages Remitted

Legal Issues

  1. 1 Did Price Waterhouse hold the funds in trust for the investors?
  2. 2 Did Price Waterhouse breach its trust obligations by premature payment?
  3. 3 Should Price Waterhouse be relieved pursuant to Trustee Act 1925, s85?

Ratio Decidendi

Price Waterhouse held the funds on trust for the investors and was not contractually entitled to pay out the money to the promoter until specified conditions (including bank consent and rental acceleration notice) were satisfied. As these were not met, the payments constituted a breach of trust, and Price Waterhouse was not relieved under Trustee Act 1925, s85 due to unreasonable conduct.

Court Disposition

Appeal dismissed with costs; matter remitted for assessment of damages.

Orders

  • Appeal dismissed with costs.
  • Matter remitted to the Common Law Division (Smart J) to determine the amount of damages payable by the defendants to the plaintiffs.