SMITH v UGLA [1999] NSWSC 1123

SMITH v UGLA [1999] NSWSC 1123

No trust was created by the discussions or arrangements between Dr Smith and Dr Wenkart, as there was no clear and present intention to create a separate trust over the life policies outside of the established superannuation fund trust; the policies are assets of the superannuation fund and not individually owned by Dr Smith.

Parties
Plaintiff: James Robert Smith; Plaintiff: Shirim Pty Ltd; Defendant: UGLA Pty Ltd; Defendant: Fesena Pty Ltd; Defendant: Eastern Suburbs Private Hospital Pty Ltd (formerly GAB No. 94 Pty Ltd); Defendant: Dr Tom Wenkart; Defendant: Ultera Pty Ltd; Defendant: Traknew Holdings Pty Ltd
Jurisdiction
Australia
Judgment Date
23 November 1999
Procedural Posture
Equity Proceedings / Judgment After Hearing
Outcome
Dr Smith's claim to beneficial ownership of the policies outside the superannuation trust is dismissed. The policies are assets of the superannuation fund.
Legal Topics
Creation of Trust by Informal Statements, Construction of Words Used in Conversation, Superannuation Funds, Beneficial Ownership of Insurance Policies
Equity Trusts and Trustees Creation of Trust by Informal Statements Construction of Words Used in Conversation Superannuation Funds Beneficial Ownership of Insurance Policies

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Parties

James Robert Smith

Plaintiff

Shirim Pty Ltd

Plaintiff

UGLA Pty Ltd

Defendant

Fesena Pty Ltd

Defendant

Eastern Suburbs Private Hospital Pty Ltd (formerly GAB No. 94 Pty Ltd)

Defendant

Dr Tom Wenkart

Defendant

Ultera Pty Ltd

Defendant

Traknew Holdings Pty Ltd

Defendant

Procedural Posture

Equity Proceedings / Judgment After Hearing

Legal Issues

  1. 1 Whether informal oral statements or arrangements created a trust over life insurance policies for the benefit of Dr Smith instead of the superannuation fund
  2. 2 Whether the life insurance policies were held by UGLA Pty Ltd as assets of the superannuation fund or on a separate trust for Dr Smith

Ratio Decidendi

No trust was created by the discussions or arrangements between Dr Smith and Dr Wenkart, as there was no clear and present intention to create a separate trust over the life policies outside of the established superannuation fund trust; the policies are assets of the superannuation fund and not individually owned by Dr Smith.

Court Disposition

Dr Smith's claim to beneficial ownership of the policies outside the superannuation trust is dismissed. The policies are assets of the superannuation fund.

Orders

  • Orders to be prepared by counsel to give effect to this decision.