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[2004] VSC 171
Supreme Court of Victoria
2004-04-27
Redlich J
Original judgment source is linked above.
[2004] VSC 171
Administration and Probate - Testator's Family Maintenance - Discovery by Beneficiaries - Amendments to A_dministration and Probate Act_ 1958 - Application of law antecedent to amendments - Section 91(4) matters to which Court must have regard - Relevance of each matter - Discovery limited to issues defined by parties.
(a) documents relating to the financial resources of the Defendant; and
(b) documents relating to benefits previously given to the Defendant by the deceased during his lifetime.
Following a contested hearing, Master Evans refused the Plaintiff's Application for discovery of these categories of documents and dismissed the Summons. The Plaintiff appeals against the Master's order pursuant to Rule 77.05.
Discovery and Part IV applications
"that if the procedure were to be abused and not kept under proper control, it might lead to litigation of the greatest acrimony and the thrashing out of a lot of irrelevant material which would not be in the public interest".[5]
In Reed v Reed, Beach J found the circumstances of the case were so unusual as to justify the making of an order for discovery.
"(i) The estate of the deceased is not large enough to make adequate provision for the proper maintenance and support of the plaintiff if it is shown the deceased did have that responsibility; (ii) Any beneficiary had a competing claim on the bounty of the deceased which would prevent the Court from ordering that such provision be made out of the estate in whole or in part; (iii) Any such provision should be made out of the share of any particular beneficiary of the estate."
Whether beneficiaries need to disclose financial position
"Here the estate is one of significant but moderate value so that it is relevant to inquire what are the competing claims of the beneficiaries, without ignoring the need to leave untouched the testator's distribution so far as may be fairly practicable. Moreover, after making due allowance for the testator's desire to benefit his widow and children, it has been accepted over many years that, if a beneficiary says nothing as to his or her financial position or other claims on the testator's bounty, then the Court is fairly entitled to assume that the beneficiary has no special claim other than relationship and that, in particular, he or she has adequate resources upon which to live. In the present case the other beneficiaries have said something of their dealings with a testator but little as to their financial resources as I have already pointed out. Therefore it is appropriate to consider the comparative moral claims of the widow and other children of the testator upon the assumption that each in their own way has a sufficient income and sufficient resources to meet his or her needs."[10]
Application of the antecedent law to the amended provisions
"The amended legislation while expanding the class of eligible applicants, confers only a limited jurisdiction to interfere with freedom of testation. It does not licence the Court to effect a redistribution of an estate because it would satisfy notions of familial generosity, or because the claimant has few resources and the defendant taking benefits under the will is relatively well off. Rather, it remains necessary to establish a need for provision and maintenance in the applicant in order to enliven the jurisdiction. If the need is not established, the Court has no jurisdiction to make an order, no matter how large the testator's estate. Nevertheless, the size of the estate is not irrelevant to determining need, which is not an absolute concept. Further, it is necessary to establish a breach of duty or moral obligation on the part of the testator, which constitutes a departure from the standards which a wise and a just testator would have applied. There must be an abuse of the freedom of testation." [39]
"More often than not one cannot decide whether the testator has made adequate provision for a particular claimant without also looking at the size of the estate and to 'the means and deserts of the several claimants and, to the relative urgency of the various moral claims upon his bounty', to repeat the oft cited words of Salmond J in Re Allan (deceased); Allan v Manchester [1922] NZLR 218, at p 221; Cf; for example, Blore v Lang [1960] HCA 73; (1960) 104 CLR 124 at pp 128-9 per Dixon CJ and Hughes v National Trustees, Executors and Agency Co of Australasia Ltd. [1979] HCA 2; (1979) 143 CLR 134 at p 147, per Gibbs J. As Dixon CJ himself said in Pontifical Society for the Propagation of the Faith v Scales[1962] HCA 19; (1962) 107 CLR 9 at p 19 (in whose reasons McTiernan J concurred): "it has often been pointed out that very important words in a statute are 'adequate provision for the proper maintenance and support' and that each of these words must be given its value. 'Adequate' and 'proper' in particular must be considered as words which must always be relative. The 'proper' maintenance and support of a son claiming a statutory provision must be relative to his age, sex, condition and mode of life and situation generally. What is 'adequate' must be relative not only to his needs but to his own capacity and resources for meeting them. There is then a relation to be considered between these matters on the one hand, and on the other, the nature, extent and character of the estate and the other demands upon it, and also what the testator regarded as superior claims or preferable dispositions."[40]
"Mr Scerri, for the defendant, submitted that the additional material described in the revised schedule of documents submitted by the plaintiff had no relevance to any issue in the Part IV proceeding. This was because it was not the defendant's case in that proceeding that were the plaintiff to succeed the defendant would be placed in any financial difficulty. That being so, discovery of material relating to the defendant's personal financial affairs was not relevant and should not be authorised. In support of that contention Mr Scerri relied on Anderson v Teboneras [1990] VicRp 47; [1990] VR 527 and Grey and Harrison [1997] 2 VR 359. However those cases were decided before the introduction of s 91 of the Act in its present form by s 55 of the Wills Act 1997 and in particular of s 91(4)(f) (g) and (h). The effect of those provisions is to require the Court in the Part IV proceeding to have regard to the financial resources and financial needs of the plaintiff and the defendant. Accordingly, it cannot be said that documents relating to those matters are irrelevant to the Part IV proceeding."[45]
"The Court shall have regard to all matters appearing to be relevant and in particular, without in any way limiting the generality of the foregoing, to such of the following considerations as appear to be relevant."
Criteria in s.91(4)(e) - (o) of the Act and relevance
Relevance of the financial resources of the Defendant at the time of the hearing and for the foreseeable future s.91(4)(h) of the Act.
Relevance of documents relating to benefits previous given to the Defendant by the deceased s.91(4)(l) of the Act.
"(a) (i) the nature of the relief which the plaintiff seeks and (ii) the personal classes of persons who would be affected by the grant of that relief - and for this purpose may require the plaintiff and defendant to supply such information as the Court thinks necessary ... (f) give such other directions as the Court thinks fit."
The duty and power of the Court to make inquiry and to give directions under this rule will amply support directions which will enable the Court to ascertain with certainty whether any beneficiary intends to claim to be affected by the granting of the relief sought to the Plaintiff.
"It cannot follow however that in every case the Court must examine to the last minute detail the financial resources of every beneficiary of every estate upon which a claim is made under Part IV of the Act. On the contrary, the Court should in my opinion make it clear to both the parties and their legal representatives that the mere commencement of proceedings under the Part does not carry with it a general and unrestricted licence (including the use of discovery and the power to subpoena documents) to delve into the affairs of actual or potential claimants or beneficiaries. Unless this is made clear, a potential danger may become real. It is that, given the relatively recent amendments to the provisions of Part IV, courts will be swamped with evidence merely because that evidence concerned matters to which (following those amendments) the courts must have regard. But 'having regard' to a matter does not necessarily mean examining it under a microscope. It is vitally important that a sense of proportion be retained. Otherwise, cases under Part IV will become a travesty of wasted time, money and other resources. Justice cannot be administered by such means." [47]
His Honour having noted that the Defendant who was not a claimant against the estate and who the Plaintiff knew could not make a claim based upon financial need stated:
"......With a moment's further thought, he would also have realised that this litigation was, therefore, never likely to reach a point at which the defendant could properly argue that any provision, or further provision, for the plaintiff would leave the defendant without adequate means for his (the defendant's) proper maintenance and support. But unless that point were reached, with the result that there would be a real contest about the share each brother would receive from a limited fund, a close examination of the defendant's financial resources was not merely unwarranted but quite inappropriate......."[48]
Although Harper J was concerned with a subpoena directed to third parties his Honour was satisfied that the documents could never assume any relevance. In my view the concerns expressed by his Honour are apposite to the present circumstances.
[2] See s 91(3) and (4) Administration and Probate Act 1958.
[3] [2001] VSC 54 per Beach J.
[5] Supra Footnote 4 at 648 per Lloyd Greene MR. See also Blair v Blair [2002] VSC 131 at paragraph 2 per Harper J.
[6] [1984] VicRp 58; [1984] VR 665 at 674.
[7] [2004] VSCA 51 at paragraph 2 per Winneke P.
[8] See Section 91(4)(c) of the Act.
[11] [2000] VSC 341 at paragraph 7 per Eames J.
[12] [2001] VSC 242 at paragraphs 60-69 per McDonald J.
[13] [2002] VSC 208 at paragraph 42 per Warren J.
[14] Supra Footnote 5 at paragraph 21 per Harper J.
[15] [2001] VSC 53 at paragraphs 81-81 per Gillard J.
[18] Pearce, D.C. & Geddes, R.S. (1996) Statutory Interpretation in Australia (4th ed.) Sydney, Butterworths at paragraph 8.7-8.8.
[23] Supra Footnote 15 at paragraphs 77-82.
[25] Supra Footnote 24 at paragraph 38.
[27] Supra Footnote 13 at paragraph 42.
[31] [2004] VSC 90 at paragraph 46.
[39] Supra Footnote 24 at paragraphs 213-215.
[46] Supra Footnote 1 Harris v Bennett
[47] Supra Footnote 5 at paragraphs 2-3.
Harris
Bennett [2004] VSC 171
(1960) 104 CLR 124
(1979) 143 CLR 134
(1962) 107 CLR 9
(1936) 55 CLR 253
(1961) 108 CLR 56
(1964) 111 CLR 62
(1973) 133 CLR 209
(1973) 1 ALR 296
(1975) 134 CLR 1
(1975) 5 ALR 147
(1956) 95 CLR 494