Hargrave v Schumann & Anor [2010] NSWSC 1415

Hargrave v Schumann & Anor [2010] NSWSC 1415

It is appropriate to vary the previous order to permit the trustee to make monthly payments of $2,000 to the first defendant for living expenses and up to $60,000 for legal costs, while retaining substantial funds until proceedings are determined, as this adequately protects the interests of the plaintiff.

Parties
Plaintiff: Elizabeth Hargrave; First Defendant: Paul Schumann; Second Defendant: Gnitekram Marketing Pty Limited
Jurisdiction
Australia
Judgment Date
26 November 2010
Procedural Posture
Equity Proceeding / Interlocutory Application for Variation of Prior Orders
Outcome
Application granted. Prior order varied to permit distributions from trust account for living and legal expenses.
Legal Topics
Trusts, Distributions for Living Expenses, Distributions for Legal Costs
Equity Trusts Distributions for Living Expenses Distributions for Legal Costs

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Parties

Elizabeth Hargrave

Plaintiff

Paul Schumann

First Defendant

Gnitekram Marketing Pty Limited

Second Defendant

Procedural Posture

Equity Proceeding / Interlocutory Application for Variation of Prior Orders

Legal Issues

  1. 1 Whether trustee may distribute proceeds from sale of trust asset to beneficiary for living expenses and legal costs while litigation is ongoing

Ratio Decidendi

It is appropriate to vary the previous order to permit the trustee to make monthly payments of $2,000 to the first defendant for living expenses and up to $60,000 for legal costs, while retaining substantial funds until proceedings are determined, as this adequately protects the interests of the plaintiff.

Court Disposition

Application granted. Prior order varied to permit distributions from trust account for living and legal expenses.

Orders

  • Order 4 made 5 November 2010 vacated and substituted: Net proceeds of sale paid to Trust Account of Stuart Cook & Braham. Trustee may pay: (i) $2,000 to first defendant for November 2010; (ii) $2,000 for December 2010; (iii) $2,000 monthly thereafter; (iv) up to $60,000 to first defendant's legal representatives...
  • Defendants' costs of notice of motion dated 4 November 2010 to be defendants' costs in the cause.