Jainti Pty Ltd v Fraser Panorama Pty Ltd [2021] NSWSC 744

Jainti Pty Ltd v Fraser Panorama Pty Ltd [2021] NSWSC 744

The documentary evidence, financial records, and tax statements contemporaneous to and following the unit issue in 2006 support a finding that Jainti Pty Ltd held the 34 units in the Fraser Unit Trust solely as trustee for the Zambito Trust, and no valid subsequent termination or variation established the Family Trust alternative advanced by Anthony Zamattia. Payment to Anthony of the trust distribution was thus made in breach of trust, and he was at least on constructive notice and liable to repay the sum received due to knowing receipt. The relief should be limited to an order for payment of the funds to Jainti as trustee for the Zambito Trust; a further declaration is unnecessary.

Jurisdiction
Australia
Judgment Date
25 June 2021
Procedural Posture
Equity / Principal Judgment
Outcome
Judgment for the plaintiff (Jainti Pty Ltd); order for payment of funds to Jainti as trustee for the Zambito Trust; costs reserved.
Legal Topics
['wrongful Distribution of Trust Property' 'constructive Trusts' 'knowing Receipt' 'rule in Saunders V Vautier' 'beneficiaries’ Rights']
['equity' 'trusts and Trustees'] ['wrongful Distribution of Trust Property' 'constructive Trusts' 'knowing Receipt' 'rule in Saunders V Vautier' 'beneficiaries’ Rights']

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Procedural Posture

Equity / Principal Judgment

Legal Issues

  1. 1 ['Whether Jainti Pty Ltd held 34 units in the Fraser Unit Trust as trustee for the Zambito Trust or a separate Family Trust' 'Whether Anthony Zamattia was lawfully entitled to receive the trust distribution for 1/5th of the 34 units' 'Whether the rule in Saunders v Vautier allowed partial termination of the Family Trust' 'Whether Anthony is liable for knowing receipt of distributions made in breach of trust']

Ratio Decidendi

The documentary evidence, financial records, and tax statements contemporaneous to and following the unit issue in 2006 support a finding that Jainti Pty Ltd held the 34 units in the Fraser Unit Trust solely as trustee for the Zambito Trust, and no valid subsequent termination or variation established the Family Trust alternative advanced by Anthony Zamattia. Payment to Anthony of the trust distribution was thus made in breach of trust, and he was at least on constructive notice and liable to repay the sum received due to knowing receipt. The relief should be limited to an order for payment of the funds to Jainti as trustee for the Zambito Trust; a further declaration is unnecessary.

Court Disposition

Judgment for the plaintiff (Jainti Pty Ltd); order for payment of funds to Jainti as trustee for the Zambito Trust; costs reserved.

Orders

  • ['Order that the sum of $161,160 (plus interest) held in the controlled moneys account of Bird & Bird be paid to Jainti Pty Ltd as trustee for the Zambito Trust.' 'Reserve the question of costs to be dealt with on the papers if possible.' 'Direct the parties to file brief written submissions on costs within 14 days,...