Toyama Pty Ltd v Landmark Building Developments Pty Ltd;Landmark Building Developments Pty Ltd v Stanislaus Anthony Carroll & Anor (No 2) [2007] NSWSC 55

Toyama Pty Ltd v Landmark Building Developments Pty Ltd;Landmark Building Developments Pty Ltd v Stanislaus Anthony Carroll & Anor (No 2) [2007] NSWSC 55

The trustees are entitled to be indemnified by the beneficiary (Landmark) for legal costs properly incurred in defending proceedings brought by that beneficiary, except for costs incurred in breach of trust, despite the earlier distribution of trust assets. Remuneration for trustees' work in trust administration is proper; however, remuneration for work in defending beneficiary claims is not allowed absent an express provision.

Jurisdiction
Australia
Judgment Date
09 February 2007
Procedural Posture
Equity Trusts / Post Judgment Hearing Regarding Trustees' Remuneration and Costs Orders
Outcome
Orders made as per paragraphs 44-48: trustees' proper remuneration referred for assessment; Landmark to pay trustees' legal costs (excluding breach of duty costs); no orders as to other costs.
Legal Topics
['trustee Remuneration' 'trustee Indemnity' 'trustee Costs' 'trust Administration' 'indemnity Costs' 'obligations of Beneficiaries']
['equity' 'trusts and Trustees'] ['trustee Remuneration' 'trustee Indemnity' 'trustee Costs' 'trust Administration' 'indemnity Costs' 'obligations of Beneficiaries']

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Procedural Posture

Equity Trusts / Post Judgment Hearing Regarding Trustees' Remuneration and Costs Orders

Legal Issues

  1. 1 ["Whether trustees are entitled to an order requiring the beneficiary (Landmark) to pay trustees' costs of proceedings brought by beneficiary on an indemnity basis." 'Whether trustees are entitled to remuneration for work in defending proceedings brought against them by beneficiary.' "What is the proper source and quantum of trustees' remuneration post-sale and whether allocation of legal costs should fall on a specific beneficiary."]

Ratio Decidendi

The trustees are entitled to be indemnified by the beneficiary (Landmark) for legal costs properly incurred in defending proceedings brought by that beneficiary, except for costs incurred in breach of trust, despite the earlier distribution of trust assets. Remuneration for trustees' work in trust administration is proper; however, remuneration for work in defending beneficiary claims is not allowed absent an express provision.

Court Disposition

Orders made as per paragraphs 44-48: trustees' proper remuneration referred for assessment; Landmark to pay trustees' legal costs (excluding breach of duty costs); no orders as to other costs.

Orders

  • ["Proceedings referred to a registrar to assess and certify trustees' proper remuneration for trust administration." 'Plaintiff (Toyama) and first defendant (Landmark) declared liable to pay trustees, in proportion of one-third (Toyama) and two-thirds (Landmark), any certified proper remuneration not already...