Application of Murray Irrigation Ltd [2024] NSWSC 186

Application of Murray Irrigation Ltd [2024] NSWSC 186

It was expedient to appoint Riverina Sustainable in substitution for the plaintiff because the plaintiff no longer wished to act as trustee, Riverina Sustainable had been established for that specific purpose, its members and shareholders were the LHAs representing the local landholders beneficially interested in the funds, it had the LAC's support, and it had taken appropriate preparatory steps to receive and administer the LWMP Funds. Court assistance was required because the plaintiff had no express or apparent implied power to appoint a substitute trustee itself. It was unnecessary to join beneficiaries because their interests were adequately represented through the relevant...

Jurisdiction
Australia
Judgment Date
29 February 2024
Procedural Posture
Application Under S 70 of the Trustee Act 1925 (nsw) for Appointment of a Replacement Trustee of Trust Funds and Vesting Order Under S 71 / Principal Judgment on Unopposed Ex Parte Summons
Outcome
Application granted; Riverina Sustainable LWMP Pty Ltd appointed as trustee in substitution for Murray Irrigation Ltd and LWMP Funds vested in Riverina Sustainable.
Legal Topics
['court Appointment of New Trustee' 'removal and Substitution of Trustee' 'vesting of Trust Property' 'trustee Costs and Indemnity' 'joinder of Beneficiaries in Trust Proceedings']
['equity' 'trusts and Trustees'] ['court Appointment of New Trustee' 'removal and Substitution of Trustee' 'vesting of Trust Property' 'trustee Costs and Indemnity' 'joinder of Beneficiaries in Trust Proceedings']

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Procedural Posture

Application Under S 70 of the Trustee Act 1925 (nsw) for Appointment of a Replacement Trustee of Trust Funds and Vesting Order Under S 71 / Principal Judgment on Unopposed Ex Parte Summons

Legal Issues

  1. 1 ['Whether it was expedient under s 70 of the Trustee Act 1925 (NSW) to appoint Riverina Sustainable LWMP Pty Ltd as trustee in substitution for Murray Irrigation Ltd.' 'Whether it was inexpedient, difficult or impracticable to appoint the new trustee without the assistance of the Court.' 'Whether the funds referrable to the 2022 LWMP should vest in Riverina Sustainable under s 71 of the Trustee Act 1925 (NSW).' 'Whether beneficiaries or a class of beneficiaries needed to be joined to the proceedings.' "Whether the plaintiff's costs should be paid from the LWMP Funds on an indemnity and pro-rata basis."]

Ratio Decidendi

It was expedient to appoint Riverina Sustainable in substitution for the plaintiff because the plaintiff no longer wished to act as trustee, Riverina Sustainable had been established for that specific purpose, its members and shareholders were the LHAs representing the local landholders beneficially interested in the funds, it had the LAC's support, and it had taken appropriate preparatory steps to receive and administer the LWMP Funds. Court assistance was required because the plaintiff had no express or apparent implied power to appoint a substitute trustee itself. It was unnecessary to join beneficiaries because their interests were adequately represented through the relevant...

Court Disposition

Application granted; Riverina Sustainable LWMP Pty Ltd appointed as trustee in substitution for Murray Irrigation Ltd and LWMP Funds vested in Riverina Sustainable.

Orders

  • ['Pursuant to s 70 of the Trustee Act 1925 (NSW), Riverina Sustainable LWMP Pty Ltd shall be appointed as trustee of any funds referrable to the implementation of the NSW Murray Irrigation District Landholder Association Land and Water Management Plan 2022 in substitution for the plaintiff, the existing trustee...