CAUSLEY and ANOR v COUNTRYSIDE (NO 3) PTY LTD and ORS [1996] NSWCA 97

CAUSLEY and ANOR v COUNTRYSIDE (NO 3) PTY LTD and ORS [1996] NSWCA 97

The trustee is entitled, in equity, to indemnity from the unit holders/beneficiaries for liabilities incurred within power, and neither the trust deed nor the circumstances of this commercial trust negate or exclude that general obligation. Brownie J's holding that beneficiaries are liable to indemnify the trustee in excess of trust assets is correct and stands.

Parties
Appellant: Causley and Anor; First Respondent: Countryside (No 3) Pty Ltd; Second Respondent: Bayside Brunswick Pty Ltd (In liquidation); Third Respondent: McGeary Brothers Contractors Pty Ltd
Jurisdiction
Australia
Judgment Date
02 September 1996
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed with costs.
Legal Topics
Trustee Indemnity, Beneficiary Liability
Equity Trusts Trustee Indemnity Beneficiary Liability

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2
Sign in to unlock

Parties

Causley and Anor

Appellant

Countryside (No 3) Pty Ltd

First Respondent

Bayside Brunswick Pty Ltd (In liquidation)

Second Respondent

McGeary Brothers Contractors Pty Ltd

Third Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Are unit holders in a unit trust liable to indemnify the trustee for liabilities incurred in excess of trust assets?
  2. 2 Does the trust deed exclude or limit the trustee's equitable right of indemnity against beneficiaries/unit holders?

Ratio Decidendi

The trustee is entitled, in equity, to indemnity from the unit holders/beneficiaries for liabilities incurred within power, and neither the trust deed nor the circumstances of this commercial trust negate or exclude that general obligation. Brownie J's holding that beneficiaries are liable to indemnify the trustee in excess of trust assets is correct and stands.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.