Montevento Holdings Pty Ltd v Scaffidi [2012] HCA 48

Clause 11.03 of the trust deed does not prohibit the appointment of a corporation, even if controlled by an appointor who is also a beneficiary, as trustee. The trust deed distinguishes between natural persons ('individuals') and corporate entities. The prohibition in clause 11.03 applies only to individuals as natural persons, not to corporations.

Parties: Appellant: Montevento Holdings Pty Ltd; Appellant: Eugenio Scaffidi; Respondent: Giuseppe Diego Scaffidi; Respondent: Maria Scaffidi
Jurisdiction: Australia
Judgment Date: 07 November 2012
Procedural Posture: Appeal / Final Judgment
Outcome: Appeal allowed
Legal Topics: Construction of Trust Deed, Appointment of Trustee, Corporate Trustee Eligibility

Equity Trusts and Trustees Construction of Trust Deed Appointment of Trustee Corporate Trustee Eligibility

Case Brief

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Parties

Montevento Holdings Pty Ltd

Appellant

Eugenio Scaffidi

Appellant

Giuseppe Diego Scaffidi

Respondent

Maria Scaffidi

Respondent

Procedural Posture

Appeal / Final Judgment

Legal Issues

1 Whether the appointment of Montevento Holdings Pty Ltd as trustee breached clause 11.03 of the trust deed
2 Whether a corporation controlled by an appointor-beneficiary is eligible to be appointed trustee under the trust deed

Ratio Decidendi

Court Disposition

Appeal allowed

Orders

Set aside the orders of the Court of Appeal of the Supreme Court of Western Australia made on 27 July 2011
Order that the appeal to that Court be dismissed