Wise & Young Pty Ltd v Culley [2020] NSWSC 1139

Wise & Young Pty Ltd v Culley [2020] NSWSC 1139

Defined Properties Investments Pty Limited did not have a Quistclose-style trust over the monies as the language of the resolutions and circumstances did not evidence an intention to create a trust in its favour upon failure of the purpose. The Court exercised its discretion to direct payment of the funds to the defendant, Mr Culley, in partial satisfaction of his costs judgment, as it would be appropriate to shortcut the enforcement process given the absence of competing claims and lack of evidence of insolvency.

Jurisdiction
Australia
Judgment Date
24 August 2020
Procedural Posture
Application/notice of Motion / Decision on Distribution of Monies Paid Into Court After Proceedings Dismissed
Outcome
Application by defendant for payment out of funds granted; Court directed payment of monies in court (and accrued interest) to defendant.
Legal Topics
['quistclose Trust' 'security for Costs' 'exercise of Discretion in Payment of Monies in Court']
['equity' 'civil Procedure'] ['quistclose Trust' 'security for Costs' 'exercise of Discretion in Payment of Monies in Court']

Case Brief

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Procedural Posture

Application/notice of Motion / Decision on Distribution of Monies Paid Into Court After Proceedings Dismissed

Legal Issues

  1. 1 ['Whether a Quistclose-style trust arose in favour of Defined Properties Investments Pty Limited over monies paid into court as security for costs' 'Whether the court should exercise its discretion to pay monies in court to the defendant (Mr Culley) in partial satisfaction of his judgment for costs after the proceedings were dismissed and security was not timely provided']

Ratio Decidendi

Defined Properties Investments Pty Limited did not have a Quistclose-style trust over the monies as the language of the resolutions and circumstances did not evidence an intention to create a trust in its favour upon failure of the purpose. The Court exercised its discretion to direct payment of the funds to the defendant, Mr Culley, in partial satisfaction of his costs judgment, as it would be appropriate to shortcut the enforcement process given the absence of competing claims and lack of evidence of insolvency.

Court Disposition

Application by defendant for payment out of funds granted; Court directed payment of monies in court (and accrued interest) to defendant.

Orders

  • ['Order that the monies paid into Court on 16 July 2019 together with any accrued interest be paid out to the defendant.' "Order that the plaintiff and Defined Properties Investments Pty Limited pay the defendant's costs of his notice of motion filed 14 July 2020."]