Naaman v Jaken Properties Australia Pty Limited

Equity – Fiduciary obligation – Successor trustee and former trustee – Where former trustee has entitlement in equity to be indemnified out of trust assets for expenses and liabilities properly incurred – Where trustee has beneficial interest in trust assets commensurate with that entitlement to indemnification – Where appellant is judgment creditor of former trustee and subrogated to former trustee's entitlement to indemnification – Where successor trustee transferred trust assets to third parties leaving insufficient trust assets to satisfy former trustee's entitlement to indemnification – Whether successor trustee owes fiduciary obligation to former trustee – Whether fiduciary obligation owed in respect of entitlement of former trustee to indemnification out of trust assets or commensurate beneficial interest in trust assets retained by former trustee following replacement by successor trustee.

Words and phrases – "beneficial interest", "cestui que trust", "dishonest and fraudulent design", "equitable proprietary interest", "exoneration", "fiduciary obligation", "fiduciary relationship", "former trustee", "incoherence", "indemnification", "knowing assistance", "priority", "security interest", "successor trustee", "vulnerability".

Trustee Act 1925 (NSW) – ss 6, 59.