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[2014] NSWCATGD 29
NCAT Guardianship
2014-08-13
Simpson J, Hodgson J, Young J
Original judgment source is linked above.
WHAT THE TRIBUNAL DECIDED 1The Tribunal dismissed the application for a guardianship order. The Tribunal appointed Mr SXA as financial manager for Mr MCQ subject to the oversight and direction of the NSW Trustee and Guardian. The Tribunal decided to make no order following its review of the enduring power of attorney.
BACKGROUND 2Mr MCQ is an 80-year old man with cognitive and physical disabilities and a range of health conditions. He lives at an aged care facility on the North Shore of Sydney. Mr MCQ has three adult children from his first marriage, Mr PMN, Mr NUH and Ms DVB. For 34 years he has been married to his second wife Mrs MSQ. He has two stepchildren, Mr LKJ and Ms TWD. 3In 2002, Mr MCQ signed an enduring power of attorney appointing his wife Mrs MSQ. 4There is a family business, Pty Ltd A, which was founded by Mr MCQ's father and then managed successively by his brother Mr DCG, by Mr MCQ and now by Mr PMN. 5In 2012, Mr MCQ moved into the aged care facility. 6Conflict has developed between Mrs MSQ and Mr MCQ on the one side and Mr PMN on the other side in relation to financial issues. Related to this conflict, Mr MCQ said that he did not wish to see Mr PMN. 7In December 2013, Mr PMN made applications for guardianship and financial management orders and for review of the enduring power of attorney. 8In February 2014, Mr MCQ signed an appointment of enduring guardian appointing Mrs MSQ in relation to accommodation, health and services issues with her two children as alternative guardians. 9With leave from the Tribunal, Mr IUY, solicitor represented Mr MCQ in the proceedings. Mr PMN and Mrs MSQ were also assisted by solicitors but did not seek leave for legal representation.
MR PMN'S STANDING TO MAKE THE APPLICATIONS 10For Mr PMN to have standing to make his guardianship and financial management applications, he needed to be a person "who, in the opinion of the Tribunal, has a genuine concern for the welfare" of Mr MCQ (sections 9(1) and 25I(1), Guardianship Act 1987 (NSW)). He could make an application for review of the power of attorney on the same basis or on the basis that "in the opinion of the review Tribunal, [he] has a proper interest in the proceedings" (section 35(1), Powers of Attorney Act 2003 (NSW)). 11In two cases, the Tribunal carefully considered what the standing provisions in the Guardianship Act require (ACJ [2007] NSWGT 15; QAG [2007] NSWGT 12). The Tribunal decided that, in the context of the Act, a genuine concern for the welfare of the person requires:
Issues for the Tribunal 23The questions which had to be decided by the Tribunal in relation to guardianship were:
Should the Tribunal make a guardianship order? 29In deciding whether to make a guardianship order, the Tribunal needed to take account of all relevant factors, including those listed in Section 14(2) of the Act. These relate to the views of Mr MCQ and his spouse, preserving family relationships, preserving cultural and linguistic environments and the practicability of services being provided without a guardianship order. The Tribunal could be guided by the principles in Section 4 of the Act, in particular regarding Mr MCQ's interests as its paramount consideration. The Tribunal ultimately has a broad discretion whether to make a guardianship order (IF v IG & Others [2004] NSWADTAP 3). 30In his lawyer's submissions, Mr MCQ expressed contentment with his appointment of Mrs MSQ as enduring guardian and strongly opposed the appointment of any other guardian. In the hearing, Mr MCQ spoke very positively about Mrs MSQ and his trust in her as a decision maker if he needed one. 31Mrs MSQ wanted to continue as enduring guardian or person responsible. If family members did not accept Mr MCQ's wish not to see them, she requested that the Public Guardian be appointed in relation to this issue. 32There is no dispute about Mr MCQ continuing to live at the aged care facility which is an extra care facility with high fees. 33Mr PMN was keen to have a high level of access to information in relation to his father's health and care. However, while this may be Mr PMN's wish as a son who cares about his father, there was no significant evidence to suggest that this was needed in Mr MCQ's interests. 34If there is medical treatment that Mr MCQ does not understand, then the law says that his wife Mrs MSQ is the person to decide about this as "person responsible" under the Guardianship Act. Mrs MSQ would be person responsible as enduring guardian. There is some uncertainty about the validity of the appointment of enduring guardian in view of Mr MCQ's cognitive impairment. However, even if it is not valid, Mrs MSQ would be person responsible as the closely involved spouse. 35Mr MCQ has a long-standing general practitioner Dr X who visits the aged care facility very regularly and sees Mr MCQ as needed. In his report of January 2014, Dr X said that, at the aged care facility, Mr MCQ is receiving the highest quality care available. Mrs MSQ spends many hours each day with him ensuring that his occupational care is maintained. Dr X has witnessed Mrs MSQ's total dedication to Mr MCQ's well-being. She has always been his advocate to ensure that he has the best care and attention. Mr MCQ wanted Mrs MSQ as his guardian and carer. He could not have anyone better than Mrs MSQ to look after his welfare. 36In the hearing, Ms WFD, care manager at the aged care facility, said that Mr MCQ has been generally well over the last year. He receives physiotherapy, attends exercise classes and does exercises with Mrs MSQ. Mrs MSQ raises issues with Ms WFD directly and there are case conferences. Mrs MSQ raises sensible issues. The facility's relationship with Mrs MSQ works well. Mr MCQ did have an aged care assessment. The facility does not have him diagnosed with a cognitive impairment. 37Mrs MSQ spoke positively about the facility and said that she spends a lot of time with Mr MCQ. She speaks up about Mr MCQ's needs to staff. Dr X is a caring doctor. 38Mrs MSQ had written to the Tribunal that she was willing to notify Mr PMN of any major changes in Mr MCQ's care and treatment. 39Whilst the Tribunal was surprised that Ms WFD was not aware that Mr MCQ has a cognitive impairment, overall, it was clear that Mr MCQ's health and care needs are being met very conscientiously by the combination of the facility, Mrs MSQ and Dr X. 40The other issue that might have called for a guardianship order was the issue of access to Mr MCQ by Mr PMN and other family members. Related to the financial conflict, there have been issues about Mr PMN having access to his father. In June 2013, Mr MCQ signed a letter to Mr PMN asking him not to make further contact while financial issues were outstanding and threatening legal action if Mr PMN telephoned or visited. Mr PMN questioned that this letter could have been written by Mr MCQ. In the hearing, he said that there had been visits where Mr MCQ welcomed him after he had been told he was not welcome. 41In the hearing, Mrs MSQ said that she had not stopped Mr PMN's contact with Mr MCQ. She had written the June 2013 letter for Mr MCQ on the basis of Mr MCQ's thoughts and wishes, following an unpleasant visit by Mr PMN where Mr MCQ's will had been discussed. There had been some nice visits by Mr PMN to Mr MCQ at the facility but then some stressful visits. 42Mr MCQ said that Mr PMN very seldom visits him and he would not like Mr PMN to come more because Mr PMN aggravates him. He did not want to see him. Mr MCQ also spoke negatively about contact with his other children Mr NUH and Ms DVB. 43Ms WFD said that, from the facility's perspective, there was no impediment to Mr PMN visiting his father other than whether Mr MCQ wished to see Mr PMN. 44Mr PMN expressed concern about influence on Mr MCQ by others and suggested visits would be workable if there was a concerted effort by others. He also acknowledged that time is a healer and that the core issue was whether his father welcomed him when he walked in the door. 45As discussed in the hearing, the Tribunal did not see how a guardianship order in relation to access would be workable. It would be unrealistic to impose access on Mr MCQ. Whatever the impact of Mr MCQ's cognitive impairment and whether or not he is influenced by others, the core issue is whether Mr MCQ is willing to have contact with Mr PMN. 46Likewise with other family members, the core issue is whether Mr MCQ is willing to see them. 47Clearly, the current financial conflict is central to the access issues with Mr PMN. The Tribunal's hope is that the financial management order will allow these conflicts to be resolved. This is the most likely way to remove impediments to access by Mr PMN. Historically, Mr PMN and Mr MCQ clearly had a very close relationship living and working together and so it would be in Mr MCQ's interests if a positive relationship can resume in the future. However, the Tribunal could not see how appointing a guardian with an access function would facilitate this purpose. 48Overall then, while Mrs MSQ was open to the idea of the Public Guardian addressing access issues, the Tribunal would have seen this as an intrusion that Mr MCQ did not want and which would not have achieved any useful purpose. Mr MCQ's health and care needs are being well met and Mrs MSQ was willing to inform Mr PMN of any major changes in Mr MCQ's care and treatment. Even if the Tribunal could make a guardianship order, it was not satisfied that it should.
Issues for the Tribunal 49The questions which had to be decided by the Tribunal in relation to financial management were:
Outline of Mr MCQ's financial affairs 50The family business, Pty Ltd A, is controlled by Mr PMN who is sole governing director and majority shareholder. Mr MCQ also has substantial shares in the company. 51The business premises in Sydney are owned one third by Mr MCQ, one third by Mr PMN and one third by the family self-managed superannuation fund whose trustee is Pty Ltd B. The premises were valued at $1 million in 2012. 52Pty Ltd B has two shareholders, Mr MCQ and Mr PMN each having one share. There are three directors, Mr MCQ, Mr PMN and Mrs MSQ. Mrs MSQ's uncontradicted evidence was that Mr MCQ is the predominant beneficiary of the superannuation fund with an entitlement in the order of $1 million plus 75% of the superannuation fund's interest in the business premises. 53Mr MCQ also has about $14,000 in the bank and $49,000 in listed shares. 54Mr MCQ paid a bond of $200,000 at the aged care facility. From the evidence in the hearing of Ms W, general manager of the facility, Mr MCQ now has a balance of $138,000 of this bond. From the bond, an extra services fee of $2400 a month is deducted plus, for five years, a retention fee of $323 a month. 55Mrs MSQ's understanding is that, when the $200,000 is fully used up, Mr MCQ will need to provide further capital for a bond or pay an extra amount each month. 56Ms W said that Mr MCQ also has to pay general fees of approximately $3700 a month. 57Over time, Mr MCQ has made considerable financial provision for each of Mrs MSQ and Mr PMN. This includes:
Is Mr MCQ incapable of managing his financial affairs? 58In PY v RJS [1992] 2 NSWLR 700, Justice Powell said that a person is not shown to be incapable of managing his or her affairs unless at least it appears: (a) that he or she appears incapable of dealing in a reasonably competent fashion with the ordinary routine affairs of man; and (b) that by reason of that lack of competence there is shown to be a real risk that either: (i) he or she may be disadvantaged in the conduct of such affairs; or (ii) that such monies or property which he or she shall possess may be dissipated or lost. It is not sufficient merely to demonstrate that the person lacks the high level of ability needed to deal with complicated transactions or that he or she does not deal with even simple or routine transactions in the most efficient manner. 59(a) above includes issues about being able to plan for the future, and working out how to feed one's family, generate income and look after capital (H v H, Supreme Court of NSW, Justice Young, 20 March 2000). It also includes being able to carry on a business. The likelihood that the person would seek and follow appropriate advice is important (Re GHI [2005] NSWSC 581). 60In P v R [2003] NSWSC 819, Justice Barrett restated the test for incapability as follows: The task of the court[...] is to make a judgment as to the capacity and ability of the person concerned to cope with the ordinary routine affairs of living, particularly so far as they concern the person's property. This is a somewhat shorthand version of the tests laid down by the authorities[...]The point to be emphasised is that the requisite judgment is to be made in the light of objective physical facts concerning the relevant person's property, money and other assets and the way the person is able to look after them. If there is a lack of capacity, the reason for it does not matter. 61Justice White followed this formulation in Re D [2012] NSWSC 1006 and the Tribunal also accepts it. 62As already referred to, the Tribunal had a range of health professional evidence, in particular reports from Dr Y who had seen Mr MCQ twice in April 2013. Mr MCQ was in a wheelchair related to a stroke in 2012. He had an extensive vascular history, including TIAs, strokes and stenting to the basilar artery. He had a history of some cognitive impairment since at least 2010. On cognitive testing, he showed some deficits. He had moderately severe dementia, physical disability and tired easily. Dr Y discussed with him his wish to transfer to his wife his one third interest in the business premises and thought he had sufficient understanding to make this decision. 63In January 2014, Dr Y reflected on her views and expressed some concern about the independence of Mr MCQ's wishes in relation to the business premises and his understanding of the ramifications for the family business of transferring assets to his wife. He would not have been capable of understanding complex legal or financial documents or attending company meetings and participating in discussions. Mr MCQ's cognitive function would almost certainly have deteriorated further since April 2013. 64Dr X has been Mr MCQ's general practitioner for 17 years. In a report dated 28 January 2014, he said that Mr MCQ was able to make his own personal and financial decisions. 65Dr V is a neurosurgeon who treated Mr MCQ in 2011. In July 2011, he showed significant changes with his thought processes. Dr V's view was that Mr MCQ lacked capacity to comprehend reasonably complex financial matters, to attend company meetings or to make an informed decision. 66Dr Y was the best qualified of the doctors to assess Mr MCQ's capacity. In view of her evidence, there was a strong argument to say that Mr MCQ is incapable of managing his affairs. This could be so even if he did have capacity for the specific financial issue on which Dr Y was focused in relation to a possible transfer of Mr MCQ's interest in the business premises to Mrs MSQ. 67From the conciliation hearing, there was common ground between the parties that Mr MCQ was incapable of managing his financial affairs. 68In the hearing, Mr MCQ showed limited awareness of his affairs. For example, he thought that he owned the business premises. He said that he was not sure whether Mr PMN had any ownership of the business. He thought that he had distributed the proceeds of the Regional NSW property to family members rather than just Mrs MSQ. 69Particularly in view of Dr Y's evidence and that of Mr MCQ in the hearing, the Tribunal was clear that Mr MCQ is incapable of managing his financial affairs.
Should the Tribunal make a financial management order? 70Mrs MSQ has been managing Mr MCQ's finances as his attorney. She told the Tribunal she uses the power of attorney to operate on Mr MCQ's bank account that his income goes into. She has a separate account and small income. They use their combined money to meet their needs. 71Mr MCQ was content for Mrs MSQ to continue as attorney. In the hearing, Mr MCQ's trust in Mrs MSQ was clear. 72The power of attorney is in the old form which includes a provision allowing the attorney to act in ways "whereby a benefit is conferred on her." The legal effect of this wording was never clear and under the Powers of Attorney Act 2003, much clearer and more limited standard powers are spelt out in relation to the extent to which attorneys may benefit themselves. 73There is a range of financial issues facing Mr MCQ, including:
Who should be the financial manager? 82The Tribunal needed to consider whether it could appoint a suitable person to the role of financial manager and otherwise needed to appoint the NSW Trustee and Guardian. This issue needed to be determined in accordance with Mr MCQ's best interests. The Tribunal has a broad discretion here. It needed to take into account all relevant circumstances and could be guided by the principles in section 4 of the Guardianship Act (Guardianship Act section 25M; Holt v Protective Commissioner [1993] 31 NSWLR 227; SH v Protective Commissioner [2006] ADTAP 22; LA v Protective Commissioner [2004] NSWADTAP 39; M v M [2013] NSWSC 1495). 83In Holt v Protective Commissioner, President Kirby of the Court of Appeal set out a checklist of considerations that "might be kept in mind" in deciding who should be financial manager. See also M v M [2013] NSWSC 1495 where the Justice Lindsay set out a checklist of factors that the Court might bear in mind. These factors included:
Recommendations 105The Tribunal recommends to Mr SXA that he first ensure that he has full and balanced information in relation to the issues facing him as manager. The Tribunal will provide him with all of the papers before it and it will be important for the parties to provide him with any other important information. 106Some of the information Mr SXA needs may include the following:
REVIEW OF POWER OF ATTORNEY 112Having decided to make a financial management order, the Tribunal decided to make no order on the review of power of attorney. The power of attorney is suspended by the financial management order. Mr PMN had wanted orders for Mrs MSQ to account for her actions as attorney. She had done so to some degree in response to the Tribunal's directions in preparing the matter for hearing. The financial manager can consider whether to look into past financial issues further.
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales. Registrar DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 22 October 2014
IF
IG & Others