Kanjian v Kanjian [2019] NSWSC 166

Kanjian v Kanjian [2019] NSWSC 166

Given the deadlock in management of the corporate trustee due to family division and the existence of litigation affecting trust property, the only practical course is the appointment of receivers and managers over the two relevant trusts held by the third defendant, pending resolution of the beneficial ownership dispute. The seriousness of the issue and the balance of convenience support interlocutory relief to protect the interests of all parties, including the protected estate of the fourth defendant.

Jurisdiction
Australia
Judgment Date
25 February 2019
Procedural Posture
Equity Proceedings (appointment of Receivers and Managers) / Interlocutory Application and Ex Tempore Ruling
Outcome
Interlocutory orders: Appointment of receivers and managers to trust property pending determination of proceedings.
Legal Topics
['appointment of Receivers and Managers' 'deadlock in Corporate Trustee' 'beneficial Ownership of Trust Shares' "court's Supervision of Trusts"]
['equity' 'trusts and Trustees'] ['appointment of Receivers and Managers' 'deadlock in Corporate Trustee' 'beneficial Ownership of Trust Shares' "court's Supervision of Trusts"]

Case Brief

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Procedural Posture

Equity Proceedings (appointment of Receivers and Managers) / Interlocutory Application and Ex Tempore Ruling

Legal Issues

  1. 1 ["Whether the appointment of receivers and managers is warranted due to deadlock in the corporate trustee's management" 'Whether interlocutory relief should be granted pending determination of beneficial ownership of a disputed share in the corporate trustee' 'Appropriate method of management for affected trust property pending litigation']

Ratio Decidendi

Given the deadlock in management of the corporate trustee due to family division and the existence of litigation affecting trust property, the only practical course is the appointment of receivers and managers over the two relevant trusts held by the third defendant, pending resolution of the beneficial ownership dispute. The seriousness of the issue and the balance of convenience support interlocutory relief to protect the interests of all parties, including the protected estate of the fourth defendant.

Court Disposition

Interlocutory orders: Appointment of receivers and managers to trust property pending determination of proceedings.

Orders

  • ['Appointment of Bradley Tonks and Mark Roufeil as receivers and managers over The Metropole Trust and The Kanjian Family Trust held by the third defendant, on terms stated.' 'Receivers granted powers equivalent to those under section 420 Corporations Act 2001 Cth (mutatis mutandis) for management of trust...