Michael Hodge KC, Dan Clarry, Emma Beechey, James Byrnes and Danielle Davison appeared for the Catalyst parties, instructed by Corrs Chambers Westgarth.
Adam Pomerenke KC, Andrew Stumer KC, Stewart Webster KC and Sam Walpole appeared for the receivers and managers, instructed by Allens.
Amelia Wheatley KC and Ben McEniery appeared for the Attorney-General, instructed by Crown Law.
The Catalyst parties sought recovery of certain debts owed by The Presbyterian Church of Queensland (receivers and managers appointed) (“Corporation”). The debts arose out of the financing of three aged care facilities in Queensland.
The Attorney-General was given leave to intervene in the proceedings to assist the court on certain matters raised by the receivers; namely, the existence and composition of any alleged charitable trusts, whether any transactions were liable to be set aside or were entered into in breach of trust, and available remedies.
The law relating to charitable trusts was canvassed in detail in the proceedings, the court ultimately finding that the Corporation did not hold the land or any other relevant property the subject of the proceedings as trustee of the charitable trusts alleged. The court held the Corporation had no purpose of its own, distinct from its role to hold property as trustee for the purposes of the Presbyterian Church of Queensland.
In finding for the Catalyst parties, the court held the Corporation did not breach the duties it owed as trustee of the relevant property and had the power to complete the subject transactions with the Catalyst parties; the Catalyst parties did not induce or procure the Corporation to breach the duties it owed as trustee; the Catalyst parties did not engage in any unconscionable conduct in their dealings with the Corporation; and the Catalyst parties’ pursuit of their claims in the proceedings was not otherwise unconscionable.
The Catalyst parties were therefore successful in all claims (the quantum of which totalled around $31.7 million), save for one claim for post-termination occupation rent and outgoings.
The judgment can be read by clicking here
