McBride v Hudson [1962] HCA 5

McBride v Hudson [1962] HCA 5

The bequest of 196 shares in Elder Smith & Co. Limited was specific, entitling the widow to all shares derived from that parcel after subdivision (1,960 £1 shares). The accounting method adopted by the trustees for livestock and business profits during the widow's life was appropriate and cannot be excepted to; profits accruing to the life tenant are to be determined by such business methods, not by an apportionment of livestock increase.

Jurisdiction
Australia
Procedural Posture
Appeal / Appeal From Supreme Court of South Australia
Outcome
Appeal allowed (majority); order of Supreme Court of South Australia varied
Legal Topics
['specific and General Legacies' 'construction of Wills' 'rights of Life Tenants and Remaindermen' 'profits in Trust Administration' 'shares—subdivision—ademption']
['wills and Estates' 'trusts'] ['specific and General Legacies' 'construction of Wills' 'rights of Life Tenants and Remaindermen' 'profits in Trust Administration' 'shares—subdivision—ademption']

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Procedural Posture

Appeal / Appeal From Supreme Court of South Australia

Legal Issues

  1. 1 ['Whether the bequest of shares in Elder Smith & Co. Limited was a specific or general legacy and the consequences of share subdivision before death' "How profits from the pastoral business during the widow's lifetime should be accounted for between life tenants and remaindermen, especially regarding increase in livestock"]

Ratio Decidendi

The bequest of 196 shares in Elder Smith & Co. Limited was specific, entitling the widow to all shares derived from that parcel after subdivision (1,960 £1 shares). The accounting method adopted by the trustees for livestock and business profits during the widow's life was appropriate and cannot be excepted to; profits accruing to the life tenant are to be determined by such business methods, not by an apportionment of livestock increase.

Court Disposition

Appeal allowed (majority); order of Supreme Court of South Australia varied

Orders

  • ['Delete the answers to questions 1(a) and 1(f) of the Supreme Court of South Australia.' 'Substitute answer to 1(a): That pursuant to the will of Norman Harold McBride, his widow, Hilda McBride, became entitled to receive 1,960 shares of £1 each in the capital of Elder Smith & Co. Limited.' 'Substitute answer to...