By Tasman Ash Fleming -
Key decisions
- Naaman v Jaken Properties Australia Pty Limited [2025] HCA 1
- Kramer v Stone [2024] HCA 48
- Queensland v Mr Stradford (a pseudonym); Commonwealth of Australia v Mr Stradford (a pseudonym); His Honour Judge Vasta v Mr Stradford (a pseudonym) [2025] HCA 3
TRUSTEES
Successive trustee – fiduciary duty
In Naaman v Jaken Properties Australia Pty Limited [2025] HCA 1 (5 February 2025), the High Court dismissed an appeal from the Full Court of the Supreme Court of NSW with costs.
A trustee is ordinarily entitled to be indemnified for their costs, but the High Court considered whether a successor trustee owes a fiduciary duty to a former trustee to ensure there are funds sufficient to indemnify the former trustee (at [1]).
The appellant is a creditor of the former trustee and sued the respondent in the Supreme Court of NSW under the subrogated rights, relying on the indemnification of the former trustee.