[2018] WASCA 78
General information, not legal advice.
Court of Appeal (WA)
2018-05-24
Buss P, Murphy JA, Mitchell JA
Original judgment source is linked above.
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
CITATION : DRAKE -v- BRADSHAW [2018] WASCA 78
Jurisdiction : SUPREME COURT OF WESTERN AUSTRALIA
Citation : DRAKE -v- BRADSHAW [2017] WASC 228
Family provision - Application for leave to file out of time - Whether strength of applicant's admittedly arguable case is a relevant factor to consider - Turns on own facts
Andre v Perpetual Trustees WA Ltd [2009] WASCA 14
Clayton v Aust (1993) 9 WAR 364
Devereaux-Warnes v Hall (No 3) [2007] WASCA 235; (2007) 35 WAR 127
Drake v Bradshaw [2017] WASC 228
Hughes v National Trustees, Executors and Agency Co of Australia Ltd [1979] HCA 2; (1979) 143 CLR 134
Neil v Nott [1994] HCA 23; (1994) 68 ALJR 509
Wheatley v Wheatley [2018] WASCA 34
Young v Kestel [2003] WASCA 190
The Court may attach such conditions to the order as it thinks fit, or may refuse to make an order in favour of any person on the ground that his character or conduct is such as in the opinion of the Court to disentitle him to the benefit of an order, or on any other ground which the Court thinks sufficient.
(a) the application is made within 6 months from the date on which the administrator becomes entitled to administer the estate of the deceased in Western Australia; or
(b) the Court is satisfied that the justice of the case requires that the applicant be given leave to file out of time.
On an application for an order under this Act, the Court may make an order under section 65 of the Trustees Act 1962, in lieu of an order under this Act, in any case where the estate of the deceased, or part thereof, has been distributed among the persons entitled under the will.
(a) any person to whom any assets, to which the section applies, were distributed ... shall pay to the person making the claim or to the trustee a sum not exceeding the value of those assets; or
(b) any person, who has received, otherwise than in good faith and for valuable consideration, any interest in any assets, to which this section applies, from the person to whom they were distributed ... , shall pay to the person making the claim or to the trustee a sum not exceeding the value of that interest.
Where the Court, in exercise of the power conferred by subsection (1), makes an order under section 65 of the Trustees Act 1962, it shall have the same powers in respect of that order as it has in respect of an order made under this Act.
In determining whether, and in what way, provision ought to be made by an order, the Court shall have regard to the provisions of section 65(8) of the Trustees Act 1962.
Where a trustee has made a distribution of any assets forming part of the estate of a deceased person ... relief (whether under this section or in equity or otherwise) against any person other than the trustee or in respect of any interest of any such person in any assets so distributed and in any money or property into which they have been converted, shall be denied, wholly or in part, if the person from whom relief is sought received the assets or interest in good faith and has so altered his position in reliance on his having an indefeasible interest in the assets or interest, that, in the opinion of the Court, having regard to all possible implications in respect of the trustee and other persons, it is inequitable to grant relief or to grant relief in full.
it is relevant to consider whether the plaintiff has an arguable case on the merits but no detailed examination of the plaintiff's claim is warranted.
At first instance in Clayton v Aust the master had determined that the plaintiff's case was 'weak' or 'barely arguable'. The Full Court said the master was in error in attempting to evaluate the strength of the plaintiff's case. The question was whether or not the case was arguable. If it was, that was sufficient to satisfy the test.
Counsel for the plaintiff maintained that the position was not the same if it could be shown the plaintiff had a strong case. He submitted, in those circumstances, the strength of the case was a factor in favour of granting leave. With respect to counsel, I cannot see that is a correct statement of principle. What must be determined is whether the plaintiff's case is arguable. Once it is, that is a factor to be weighed in the balance in determining whether or not leave ought be granted. Of course, if the case was hopeless so that on the most favourable version of the facts to the plaintiff there was no prospect of the action succeeding, then leave might be refused. But in other cases, there is no warrant for evaluating the strength or otherwise of the plaintiff's claim.
In my view, the fact of the distribution of the estate was decisive and was largely the reason why I refused the grant of leave. Weighing all factors in the balance, I accept the plaintiff has an arguable case and I accept that there is some explanation for the delay. But it is important to bear in mind, as was said in Clayton v Aust, the time limit is a substantive provision and not a mere procedural time limit. This was not a case where there was some factor which precluded the plaintiff from finding out when he had to issue proceedings. Really what was said was that ignorance of the law combined with the plaintiff's difficult circumstances was a factor in proceedings not being commenced. I accept that proposition.
Weighing all matters in the balance, it seemed to me the fact of the distribution of the estate is decisive. This case provided no better example of beneficiaries who took a cautious approach by waiting six months from the grant of probate before taking any steps to distribute the estate. They acted prudently and with the benefit of sound legal advice. They then acted as they were entitled to do and it would not be in the interests of justice if the plaintiff were now granted leave to issue proceedings.
Ground 1: failure to take account of the strength of the appellant's case
[W]here there is an arguable case, the strength of that case may be an important factor to be considered in the overall exercise of discretion. However, there will often be cases where it is difficult to undertake a more precise assessment of the merits other than to form an overall conclusion that the case is arguable. That is because the application is conventionally determined on the papers, and the court is not in a position to resolve contested evidentiary matters concerning the underlying merits of any claim. There may, of course, be some cases where the underlying material facts are uncontested, or where admissions have been made, which enable the court to assess with some degree of confidence the strength of the applicant's case. Absent such matters, and where the applicant's own affidavit evidence is not inherently implausible or contrary to the undisputed facts and points to the existence of an arguable claim, the court will often be left in the position where it can do no more than conclude that the applicant has demonstrated an arguable case on the merits. (citations omitted) (original emphasis)
(1) The appellant had lived at the deceased's house for a period of some months in late December 2010 to early 2011, after his release from prison;
(2) Following an argument, the deceased called the police, who issued a move on notice to the appellant;
(4) The deceased subsequently took out a violence restraining order against the appellant;
(5) The violence restraining order against the appellant subsisted until about August 2013, when the deceased effectively withdrew it; and
(6) The appellant also spent some time in prison for breach of a violence restraining order against his ex-partner in 2013.
Grounds 3 and 4: disbursement of the deceased's estate.
(1) the first respondent retained a sum of $100,000 received from the estate;
(2) there was no or insufficient evidence to support a finding that she had made any change of position or would suffer hardship in relation to those funds as would make it inequitable to grant the appellant relief under s 65 of the Trustees Act in respect of those funds; and
(3) the master made no finding that it would be inequitable to grant relief in respect of the $100,000 retained by the first respondent.
In view of the statutory imperative that any order which might be made under the power available under s 65 of the Trustees Act should not be inequitable as regards assets already distributed it is difficult to envisage that an order which might eventually be made under the Act, would have an unfair or inequitable result upon any of the beneficiaries who had received such a distribution. That is the very consequence which the legislation intends to prevent and, as it is an outcome which is prohibited by statute, it cannot be presumed as a potential result. (citations omitted)
Resort to distributed assets of the estate may not be possible in the circumstances of this case, and therefore it could not be regarded as an unequivocal reason to reject the application for an extension of time.
The time limit provided by s 7(2)(a) is there for obvious reasons. There is a public interest in the prompt administration of estates. Six months is ordinarily more than long enough for a potential claimant to decide whether to bring an application for provision under s 6(1) of the Act. After the lapse of that time, beneficiaries and others who may be affected should ordinarily be entitled to assume that there will be no challenge to the will.
(1) The appellant's evidence was not that he was unaware that he may have a claim under the relevant legislation, but rather that he was unaware of there being any time limit for the bringing of such a claim.[35] Ordinarily, where the claimant has been aware of his rights but merely unaware of the time limits, that has not, in and of itself, been regarded as sufficient for granting an extension of time.[36]
(2) The appellant was allowed to live in the deceased's house for six months after the deceased's death. In other words, he took the benefit of occupation, but left the making of any application to a later time which suited him.
(3) The first respondent has limited income and has incurred other liabilities, and faces the prospect of having to borrow to reimburse the estate to meet an award in favour of the appellant.
(4) There was unchallenged evidence that the prospect of proceedings under the Act is causing the first respondent, who is suffering from medical conditions, real distress.[37]
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Devereaux-Warnes v Hall (No 3) [2007] WASCA 235; (2007) 35 WAR 127 [66] - [105].
[2] Section 65(1) of the Trustees Act.
[3] Section 65(2)(a) of the Trustees Act.
[4] Section 65(5)(a) of the Trustees Act.
[5] Drake v Bradshaw [2017] WASC 228 (Primary decision).
[11] Clayton v Aust (1993) 9 WAR 364.
[18] Wheatley v Wheatley [2018] WASCA 34 [54] - [63].
[21] Young v Kestel [2003] WASCA 190 [79], [118].
[22] Andre v Perpetual Trustees WA Ltd [2009] WASCA 14 [41] - [42].
[23] Neil v Nott [1994] HCA 23; (1994) 68 ALJR 509, 511.
[25] Hughes v National Trustees, Executors and Agency Co of Australia Ltd [1979] HCA 2; (1979) 143 CLR 134, 156.
[26] Affidavit of first respondent sworn 3 May 2017, par 11.3-11.4.
[27] Affidavit of first respondent sworn 3 May 2017, par 32 - 35.
[31] In an undistributed estate, ordinarily the executor would assume responsibility for upholding the Will, with his or her costs being paid out of the estate: see G E Dal Pont and K F Makie Law of Succession (2nd edition) 784 - 785.
[34] Section 65(8) of the Trustees Act.
[35] Appellant's affidavit 14 December 2016, pars 6 - 9.
[36] Wheatley [63] and the cases there cited.
[37] Affidavit of first respondent sworn 3 May 2017, pars 36 - 38; affidavit of second respondent sworn 8 May 2017, par 52.
Andre
Perpetual Trustees WA Ltd
(1993) 9 WAR 364
(2007) 35 WAR 127
(1979) 143 CLR 134
(1994) 68 ALJR 509