STRATTON-KENT -v- KENT [2026] WASC 286
[2026] WASC 286
Page 1
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CHAMBERS
CITATION : STRATTON-KENT -v- KENT [2026] WASC 286
CORAM : MASTER RUSSELL
HEARD : 25 FEBRUARY 2026
DELIVERED : 14 JULY 2026
PUBLISHED : 21 JULY 2026
FILE NO/S : CIV 1909 of 2025
BETWEEN : MARIA VIOLET STRATTON-KENT as
administrator of the estate of ANDREW LESLIE
KENT
Plaintiff
AND
LAURA ESTHER KENT
First Defendant
ALEXANDER LAWRENCE KENT
Second Defendant
HUGO ARMADEUO KENT
Third Defendant
Catchwords:
Trusts - Trustees - Application for directions - Trustees Act 1962 (WA) s 92 -
Whether administrator of estate justified in defending proceedings - Whether
administrator may use funds of the estate to defend proceedings - Turns on own
facts
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[2026] WASC 286
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Legislation:
Trustees Act 1962 (WA) s 92, s 92(1), s 95, s 95(1)
Result:
Application granted
Directions given pursuant to Trustees Act 1962 (WA) s 92
Category: B
Representation:
Counsel:
Plaintiff : C P K Russell
First Defendant : No appearance
Second Defendant : No appearance
Third Defendant : No appearance
Solicitors:
Plaintiff : Kershaw Legal
First Defendant : Keypoint Law Pty Limited
Second Defendant : Keypoint Law Pty Limited
Third Defendant : No appearance
Cases referred to in decision(s):
AA as executor of the estate of BB v XX [No 2] [2024] WASC 39
Alsop Wilkinson (a firm) v Neary [1996] 1 WLR 1220
Application of Macedonian Orthodox Community Church St Petka Inc [No 2]
[2005] NSWSC 558;
Australian Executor Trustee Ltd v Attorney General (WA) [2015] WASC 439
Blatchford v Laine [2018] WASC 207
Boyle v Farano [2023] WASC 303
Cardaci v Cardaci [2022] WASC 166
Cardaci v Cardaci [2023] WASCA 158
Equity trustees Wealth Services Limited v The Attorney General of Western
Australia [2024] WASC 324
In re Atkinson (dec) [1971] VicRp 73; [1971] VR 612
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[2026] WASC 286
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In re Evans [1986] 1 WLR 101
Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar
The Diocesan Bishop of the Macedonian Orthodox Diocese of Australia
and New Zealand [2008] HCA 42
Mainray Nominees Pty Ltd v Stoate [2025] WASC 145
Moyle v Quarles [No 3] [2025] WASC 443
Munro v Munro [2017] SASC 48
Plan B Trustees Ltd v Parker [No 2] [2013] WASC 216; (2013) 11 ASTLR 242
Re Addstone Pty Ltd (1997) 25 ACSR 357
Re Estate of Anastasios Keriacules Challis (dec) [2010] WASC 333
Read v Bowesco Pty Ltd [2013] WASC 240
Tsaknis v Lilburne [2010] WASC 152
Wood (as Co-Executor and Trustee of the Will of the Deceased) v Wood [No 4]
[2014] WASC 393
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[2026] WASC 286
MASTER RUSSELL
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MASTER RUSSELL:
Overview
1 This proceeding concerns the estate of the late Andrew Leslie
Kent, who died on 10 September 2023 without leaving a will. Andrew's
widow, Maria Violet Stratton-Kent, is the plaintiff in this proceeding in
her capacity as the administrator of the deceased's estate.
2 With no disrespect to the deceased, to any of the parties or others
I refer to, once identified, I will refer to them by their first names, as
they have been referred to in the materials filed. I will refer to Maria in
her personal capacity by her first name and, in her capacity as
administrator of Andrew's estate, as the Administrator.
3 The Administrator applies for directions pursuant to s 92 of the
Trustees Act 1962 (WA) that she is justified in defending claims made
against Andrew's estate in Supreme Court of New South Wales
proceeding 2024/00246210 (NSW Proceeding), and to use funds of
Andrew's estate to do so (Application).
4 The NSW Proceeding has been brought by Andrew's eldest son,
Alexander Lawrence Kent (Alex) in respect of Andrew's alleged
conduct as executor of the estate of Andrew's late mother, Clara Kent
(Clara). After Andrew died, Alex was appointed as administrator of
Clara's estate and trustee of two testamentary trusts created under
Clara's will, referred to as the Residue Trust and the Carlotta Trust
(together the Testamentary Trusts).
5 In support of the Application, the Administrator relies on an
outline of submissions filed on 5 February 2026 and affidavits sworn
by her on 12 August 2025 (First Stratton-Kent Affidavit) and
2 February 2026 (Second Stratton-Kent Affidavit). She also relies on
affidavits sworn by her solicitor, Michele Ann Kershaw, on 10 October
2025 (Kershaw Affidavit) and 23 February 2026 (Second Kershaw
Affidavit).
6 I made orders on 25 February 2026 for the Administrator to file a
further affidavit in relation to the assets and liabilities of Andrew's
estate as at the date of Andrew's death and as at the date of the hearing
of the Application. A further affidavit of the Administrator was sworn
and filed on 26 February 2026 (Third Stratton-Kent Affidavit).
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MASTER RUSSELL
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7 Andrew's adult children are the defendants to the Application.
They are:
(a) the first defendant, Laura Esther Kent (Laura), who resides in
the United Kingdom;
(b) the second defendant, Alex, who resides in Singapore; and
(c) the third defendant, Hugo Armadeuo Kent, also known as Hugo
Armadeuo Stratton-Kent, (Hugo), who resides in Western
Australia.
8 Laura and Alex have both entered an appearance and a notice of
intention to abide the court's decision, other than as to costs. Hugo has
been served with, and is on notice of, the Application but has not
entered an appearance or taken any part in the Application.
9 For the reasons that follow, I am satisfied that it is appropriate to
give the directions sought that the Administrator is justified in
defending the NSW Proceeding and in using funds of Andrew's estate
to do so.
Other materials referred to and relied upon
10 The relevant factual background, as deposed to in the affidavits
filed in support of the Application, is helpfully outlined in the
Administrator's outline of submissions.
11 In addition to the affidavits I have referred to, the submissions
refer to the pleadings and affidavits filed in the NSW Proceeding,
including affidavits sworn by Alex on 3 July 2024 (First Alex Kent
NSW Affidavit) and 28 August 2024 (Second Alex Kent NSW
Affidavit), and an affidavit sworn by the Administrator on 30 July
2025 (Stratton-Kent NSW Affidavit). Copies of those affidavits are
annexed to the First Stratton-Kent Affidavit.
Andrew's estate
12 Andrew died on 10 September 2023 in Western Australia. He had
been domiciled in Western Australia for at least 20 years before his
death and left assets in Western Australia. He did not leave a will.1
13 Andrew's parents both predeceased him. His father, Bela Kent
(Bela) died in 1982, and his mother, Clara Kent (Clara), died
1 First Stratton-Kent Affidavit [3], [5].
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on 3 December 2002.2 He was survived by Maria and his three
children, Laura, Alex and Hugo,3 who each have an interest in
Andrew's estate as provided in s 14 of the Administration Act 1903
(WA).
14 On 24 July 2024, the Administrator was granted letters of
administration in respect of Andrew's estate by this court.4
15 The Administrator deposes in the Stratton-Kent NSW Affidavit
that, other than 'some real property that was located in New South
Wales', Andrew's estate will be distributed as follows:5
(a) the household chattels and the first $472,000 to Maria;
(b) one third of the residue to Maria; and
(c) the remaining two thirds of the residue, in equal shares to
Andrew's children, Alex, Laura and Hugo.
16 Relevantly, at the date of his death, Andrew:
(a) was the sole director and shareholder of Ileveter Pty Ltd
(Ileveter);6
(b) was the sole director, company secretary and shareholder of
Blue Sea Investment Holdings Pty Ltd (Blue Sea),7 the
corporate trustee of the Ajax Super Fund;
(c) had a beneficial interest in Drysdale Investments Limited, a
company registered in the Bahamas (Drysdale);8
(d) was the beneficial owner of at least two of the four issued
shares in Anniss Trading Company Limited, a company
registered in Hong Kong (Anniss);9 and
2 First Stratton-Kent Affidavit, 'MSK-1', pages 8, 10, being the First Alex Kent NSW Affidavit [6], [13],
[15].
3 First Stratton-Kent Affidavit [4].
4 First Stratton-Kent Affidavit [7]; First Stratton-Kent Affidavit, 'MSK-12', page 1197, being the
Stratton-Kent NSW Affidavit [17], 'MSK01'.
5 First Stratton-Kent Affidavit, 'MSK-12', page 1197, being the Stratton-Kent NSW Affidavit [18].
6 First Stratton-Kent Affidavit, 'MSK-2', pages 99 - 107, being the First Alex Kent NSW Affidavit, 'AK1'
(Current & Historical Company Extract for Ileveter).
7 First Stratton-Kent Affidavit, 'MSK-6', pages 944 - 945, being the Second Alex Kent NSW Affidavit, 'AK3'
(Current Company Extract for Blue Sea).
8 First Stratton-Kent Affidavit, 'MSK-6', pages 935 - 943, being the Second Alex Kent NSW Affidavit,
'AK3'.
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(e) was a director and the chairman of Aspermont Limited
(Aspermont), a public company listed on the Australian
Securities Exchange (ASX).10
17 I refer in further detail to each of those companies and their
relevance to the NSW Proceeding later in these reasons.
18 As at the date of Andrew's death, 10 September 2023, the net
value of his estate was $11,471,196.53, comprising assets with a value
of $15,661,196.53 and liabilities of $4,190,000. Relevantly, the assets
of the estate include:11
(a) two ordinary shares in Ileveter, then valued at $9,500,000;
(b) interest in Drysdale, then valued at $2,129,196.53;
(c) interest in Gold Streaming Company Pte Ltd (Gold
Streaming), then valued at $52,000; and
(d) real property at:
(i) 14 Cavendish Street, Enmore, New South Wales; and
(ii) 125 Bedford Street, Newtown, New South Wales,
together the Properties.
19 Since Andrew's death, the Properties have each been sold, and the
proceeds of sale of the Properties have been paid to the National
Australia Bank to reduce the debts accrued to Andrew's estate.12
The value of Andrew's superannuation fund (the Ajax Super Fund) has
also subsequently been included in the assets of his estate, as there was
no binding nomination.13
20 As at the date of the Third Stratton-Kent Affidavit, 26 February
2026, the net value of Andrew's estate had increased to $14,591,342.64,
comprising assets with an estimated value of $15,819,434.95 and
9 First Stratton-Kent Affidavit, 'MSK-1', page 11, 'MSK-2', pages 38 - 72, being the First Alex Kent NSW
Affidavit [19], 'AK1'.
10 Second Stratton-Kent Affidavit [5], 'MSK14', pages 16 – 91 (Historical Company Extract for Aspermont).
11 Third Stratton-Kent Affidavit [3], 'MSK-15'. The 'MSK-15' annexure, statement of assets and liabilities,
incorrectly refers to 125 Bedford Street as '12' Bedford Street.
12 Third Stratton-Kent Affidavit [6].
13 Third Stratton-Kent Affidavit [7].
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liabilities of $1,228,092.31. Relevantly, the assets (and their estimated
value) include:14
(a) two ordinary shares in Ileveter - $13,408,283.63;
(b) interest in Drysdale - $1,029,972.81;
(c) shares in Gold Streaming - $100,000; and
(d) Ajax Super Fund - $1,276,178.51.
21 The Administrator deposes that she has calculated the value of the
Ileveter shares as follows:15
(a) 171,183,375 shares in Aspermont Limited (Aspermont) at
$0.007 per share as at 25 February 2026 - $1,198,283.63;
(b) 93,072,079 shares in Taiko Critical Minerals Limited (NZ)
(Taiko is the new entity comprising Barrytown Resources
Limited and TIGA Minerals Limited) (Taiko) - $10,030,000;
(c) 2,200,000 shares in Gold Streaming - $110,000;
(d) term deposit - $1,500,000;
(e) other cash at bank - approximately $1,300,000; and
(f) debt owed by Taiko - $270,000,
less an estimated capital gains tax liability in relation to the property in
Wellington Street of $1,000,000.
22 One of the core allegations made by Alex in the NSW Proceeding
is that the shares in Ileveter formed part of Clara's estate.
The NSW Proceeding
23 On 11 September 2003, Andrew was appointed as the sole
executor of Clara's estate and continued as such until his death.16
14 Third Stratton-Kent Affidavit [5], 'MSK-16'.
15 Third Stratton-Kent Affidavit [9] - [10]. The Administrator deposes that the values of the shares at (b) and
(c) derive from the First Alex Kent NSW Affidavit [55].
16 Second Stratton-Kent Affidavit [3].
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Subsequently, on 5 April 2024, Alex was appointed as the administrator
of Clara's estate by the Supreme Court of New South Wales.17
24 On 3 July 2024, Alex filed an application with the Supreme Court
of New South Wales to obtain leave to commence proceedings on
behalf of Clara's estate concerning Andrew's conduct in the
administration of the estate.18
25 On 13 September 2024, Alex obtained leave to commence the
NSW Proceeding against Ileveter, Drysdale, Blue Sea and Maria in her
capacity as Administrator.19
26 On 1 October 2024, the Administrator was served with an
amended summons and statement of claim in the NSW Proceeding
(NSW ASOC).20 On 9 April 2025, the NSW ASOC was further
amended, naming Maria as the fifth defendant in her personal
capacity.21 Various procedural steps have been taken in the NSW
Proceeding, as outlined in the First Stratton-Kent Affidavit.22
27 Before considering the claims made in the NSW Proceeding, and
to put them into context, it is convenient to outline relevant details
concerning each of the companies and Clara's estate. I have been
greatly assisted by the Administrator's submissions, which summarise
the position by reference to the applicable affidavit evidence, from
which I have extracted the following relevant factual background.23
Ileveter
28 Ileveter is an Australian company, which was incorporated on
28 September 1979, and is the first defendant in the NSW Proceeding.24
29 From the date of its incorporation until 2 August 2023, Anniss
held all of the shares in Ileveter, non-beneficially.25
17 First Stratton-Kent Affidavit [9]; First Stratton-Kent Affidavit, 'MSK-1', page 8, being the First Alex Kent
NSW Affidavit [1].
18 First Stratton-Kent Affidavit [11], 'MSK-1', 'MSK-2'; Administrator's submissions [3].
19 First Stratton-Kent Affidavit [14].
20 First Stratton-Kent Affidavit [15], 'MSK-7' (NSW ASOC).
21 First Stratton-Kent Affidavit [17], 'MSK-9'.
22 See First Stratton-Kent Affidavit [15] - [20], 'MSK-7' - 'MSK-12'.
23 Administrator's submissions [16] - [60].
24 First Stratton-Kent Affidavit, 'MSK-2', pages 99 - 107, being the First Alex Kent NSW Affidavit, 'AK1'
(Current & Historical Company Extract for Ileveter).
25 First Stratton-Kent Affidavit, 'MSK-2', pages 99 - 107, being the First Alex Kent NSW Affidavit, 'AK1'
(Current & Historical Company Extract for Ileveter).
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30 From 2 August 2023 until his death, Andrew was the sole
shareholder in Ileveter as beneficial owner of the shares.26
31 After obtaining the grant of letters of administration, Maria
transferred the shares in Ileveter into her name as Administrator and
appointed herself as the sole director of Ileveter on 29 July 2024.27
32 In the First Alex Kent NSW Affidavit, Alex deposes that Ileveter
was used by Andrew as a holding company for various assets,
including:28
(a) a large commercial property in Wellington Street, Perth,
Western Australia, which was sold by receivers for Judo Bank
for approximately $9.8 million (in respect of a debt of
approximately $6 million);
(b) 171,183,375 shares in Aspermont, estimated to be worth about
$2,225,000;
(c) 48,138,970 shares and 79,442,212 options over shares in New
Zealand company titled TIGA Minerals Limited, with an
estimated value of $4.8 million;
(d) 52,308,836 shares in Barrytown Resources Limited, with an
estimated value of $5,230,000;
(e) 2,200,000 shares in a Singapore company, Gold Streaming,
with an estimated value of $110,000; and
(f) $2,780,000 being the proceeds of sale of two properties owned
by Ileveter in Egan Street, Newtown, New South Wales.29
Blue Sea
33 Blue Sea is an Australian company, which was incorporated on
1 February 2008,30 is the trustee of the Ajax Super Fund and the third
defendant in the NSW Proceeding.
26 First Stratton-Kent Affidavit, 'MSK-2', pages 99 - 107, being the First Alex Kent NSW Affidavit, 'AK1'
(Current & Historical Company Extract for Ileveter).
27 First Stratton-Kent Affidavit, 'MSK-6', pages 931 - 934, being the Second Alex Kent NSW Affidavit,
'AK3' (Current Company Extract for Ileveter); First Stratton-Kent Affidavit, 'MSK-12', pages 1197 - 1198,
being the Stratton-Kent NSW Affidavit [19], 'MSK01'.
28 First Stratton-Kent Affidavit, 'MSK-1', page 17, being the First Alex Kent NSW Affidavit [54] - [56].
29 First Stratton-Kent Affidavit, 'MSK-1', pages 18 - 19, 'MSK-2', pages 229 - 242, being the First Alex Kent
NSW Affidavit [61] - [64], 'AK1'.
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34 Andrew was the sole director and shareholder of Blue Sea from
the date of its incorporation until the date of his death.31
35 After obtaining the grant of letters of administration, Maria
appointed herself as the sole director of Blue Sea, on 19 September
2024.32
36 As at 11 June 2024, Blue Sea owned 87,276,787 shares
in Aspermont.33
Drysdale
37 Drysdale is a company registered in the Bahamas on about
6 March 2000,34 and is the second defendant in the NSW Proceeding.
38 The two issued shares in Drysdale are held on trust for Andrew.35
39 As at 11 June 2024, Drysdale owned 289,996,116 shares
in Aspermont.36
Anniss
40 Anniss is a company incorporated in Hong Kong on 3 March
1978.37
41 At the date of Andrew's death:
(a) shares Nos 1 and 4 were held on trust for the BK Investment
Trust;38
30 First Stratton-Kent Affidavit, 'MSK-6', pages 944 - 945, being the Second Alex Kent NSW Affidavit,
'AK3' (Current Company Extract for Blue Sea); First Stratton-Kent Affidavit, 'MSK-12', page 1198, being
the Stratton-Kent NSW Affidavit [20].
31 First Stratton-Kent Affidavit, 'MSK-6', pages 944 - 945, being the Second Alex Kent NSW Affidavit,
'AK3' (Current Company Extract for Blue Sea); First Stratton-Kent Affidavit, 'MSK-12', page 1198, being
the Stratton-Kent NSW Affidavit [20].
32 First Stratton-Kent Affidavit, 'MSK-6', pages 944 - 945, being the Second Alex Kent NSW Affidavit,
'AK3' (Current Company Extract for Blue Sea); First Stratton-Kent Affidavit, 'MSK-12', page 1198, being
the Stratton-Kent NSW Affidavit [20].
33 First Stratton-Kent Affidavit, 'MSK-1', page 17, being the First Alex Kent NSW Affidavit [52]; First
Stratton-Kent Affidavit, 'MSK-5', page 556, being the Second Alex Kent NSW Affidavit, 'AK2' (Blue Sea
Holding Statement).
34 First Stratton-Kent Affidavit, 'MSK-6', pages 935 - 943, being the Second Alex Kent NSW Affidavit,
'AK3'.
35 First Stratton-Kent Affidavit, 'MSK-6', pages 935 - 943, being the Second Alex Kent NSW Affidavit,
'AK3'.
36 First Stratton-Kent Affidavit, 'MSK-1', page 17, being the First Alex Kent NSW Affidavit [52]; First
Stratton-Kent Affidavit, 'MSK-5', page 556, being the Second Alex Kent NSW Affidavit, 'AK2'.
37 First Stratton-Kent Affidavit, 'MSK-1', page 11, 'MSK-2', pages 38 - 72, being the First Alex Kent NSW
Affidavit [19], 'AK1'.
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(b) shares Nos 2 and 3 were held by Andrew.39
42 At the date of incorporation two shares were subscribed for; one
by Truspeak Nominees Limited (Truspeak) and one by Speaktrust
Nominees Limited (Speaktrust).40
43 On 4 May 1978, Truspeak and Speaktrust became the shareholders
of Anniss with one share each.41
44 The register of shareholders of Anniss shows that in about July
1978, two further shares were issued, one to Truspeak and one to
Speaktrust. The register shows that subsequently, on 2 January 1979,
the two shares held by Speaktrust (Nos 1 and 4) were transferred to
Neil W Speakman and the two shares held by Truspeak (Nos 2 and 3)
were transferred to Trevor P Batkin.42
45 On or about 2 January 1979, Trevor P Batkin declared that he held
shares No 2 and 3 on trust for Speaktrust Limited (not Speaktrust
Nominees Limited) as Trustee of the BK Investment Trust.43
46 On or about 16 April 1980, Neil W Speakman declared that he
held shares No 1 and 4 on trust for Asian Corporate Advisers Limited
as trustee of the BK Investment Trust.44
47 It was submitted on behalf of the Administrator that the evidence
after that suggests that shares Nos 1 and 4 were held on trust for the
BK Investment Trust,45 and that there is no further evidence shares
Nos 2 and 3 were held on trust for the BK Investment Trust. They were
transferred to Andrew in December 1998.46
38 First Stratton-Kent Affidavit, 'MSK-2', pages 63 - 66, 69 - 72, being the First Alex Kent NSW Affidavit,
'AK1'.
39 First Stratton-Kent Affidavit, 'MSK-2', pages 55, 67, being the First Alex Kent NSW Affidavit, 'AK1'.
40 First Stratton-Kent Affidavit, 'MSK-2', page 43, being the First Alex Kent NSW Affidavit, 'AK1'.
41 First Stratton-Kent Affidavit, 'MSK-2', page 54, being the First Alex Kent NSW Affidavit, 'AK1'.
42 First Stratton-Kent Affidavit, 'MSK-2', page 54, being the First Alex Kent NSW Affidavit, 'AK3'.
43 See First Stratton-Kent Affidavit, 'MSK-2', pages 57 - 58, being the First Alex Kent NSW Affidavit, 'AK1'
(Declaration of Trust). It is noted on behalf of the Administrator that the declaration at page 58 of the First
Stratton-Kent Affidavit is not stamped.
44 First Stratton-Kent Affidavit, 'MSK-2', page 61, being the First Alex Kent NSW Affidavit, 'AK1'
(Declaration of Trust).
45 First Stratton-Kent Affidavit, 'MSK-2', pages 63 - 66, being the First Alex Kent NSW Affidavit, 'AK1'.
46 First Stratton-Kent Affidavit, 'MSK-2', pages 54 - 55, 67 - 68, being the First Alex Kent NSW Affidavit,
'AK1'.
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BK Investment Trust
48 Alex contends in the NSW Proceeding that:47
(a) the shares in Anniss were beneficial assets of the BK
Investment Trust;
(b) Clara's husband, Bela, was the only nominated beneficiary of
the BK Investment Trust;
(c) Bela left all of his assets to Clara; and
(d) upon Bela's death any rights Bela had under the BK Investment
Trust became Clara's property.
Aspermont
49 Aspermont is a public company, which was listed on the ASX in
mid-2000.48 Alex is the managing director of Aspermont.49
50 Andrew was the Chairman of the board of directors of Aspermont
at the date of his death.50
51 As noted, the shares in Aspermont are held as follows:51
(a) Drysdale - 289,996,116 shares;
(b) Ileveter - 171,183,375 shares; and
(c) Blue Sea - 87,276,787 shares,
(together the Aspermont Shares).
52 Alex contends, in the NSW Proceeding, that the Aspermont Shares
held by Drysdale, Ileveter and Blue Sea were purchased with funds
belonging to Clara's estate or the Testamentary Trusts.
47 First Stratton-Kent Affidavit, 'MSK-1', page 12, being the First Alex Kent NSW Affidavit [21] - [25],
'AK1'.
48 Second Stratton-Kent Affidavit [5], 'MSK14', pages 19 - 91, particularly pages 87 - 88 (Historical
Company Extract for Aspermont).
49 First Stratton-Kent Affidavit, 'MSK-1', page 15, being the First Alex Kent NSW Affidavit [46].
50 First Stratton-Kent Affidavit, 'MSK-12', pages 1199, 1201, being the Stratton-Kent NSW Affidavit [36],
[54].
51 First Stratton-Kent Affidavit, 'MSK-1', page 17, being the First Alex Kent NSW Affidavit [52]; First
Stratton-Kent Affidavit, 'MSK-5', pages 550 - 556, being the Second Alex Kent NSW Affidavit, 'AK2'.
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Clara's Estate
53 Relevantly, Clara's estate included properties at:52
(a) 123 Bedford Street, Newtown, New South Wales (Bedford
Street); and
(b) 17 Carlotta Road, Double Bay, New South Wales (Carlotta
Road).
Bedford Street
54 Clara and Bela purchased Bedford Street on 23 February 1972.53
After Bela's death, Clara became the sole proprietor by survivorship.54
55 Bedford Street formed part of the residue of Clara's estate, which
was devised to Alex and Laura55 (referred to as the Residue Trust).
56 Bedford Street was sold on 30 March 2023 for $1,750,000.56 Alex
alleges that $904,865.32 from the proceeds of sale of Bedford Street
were disbursed to Andrew.57
Carlotta Road
57 Clara and Bela purchased Carlotta Road on 11 January 1973.58
After Bela's death, Clara became the sole proprietor by survivorship.59
58 Carlotta Road was devised to Alex, Laura and Hugo in equal
shares to be retained until the youngest (Hugo) attained the age of
25 years60 (referred to as the Carlotta Trust).
52 First Stratton-Kent Affidavit, 'MSK-1', page 9, being the First Alex Kent NSW Affidavit [11].
53 First Stratton-Kent Affidavit, 'MSK-1', page 19, 'MSK-2', page 243, being the First Alex Kent NSW
Affidavit [65], 'AK1' (Memorandum of Transfer).
54 First Stratton-Kent Affidavit, 'MSK-1', page 19, being the First Alex Kent NSW Affidavit [66].
55 First Stratton-Kent Affidavit, 'MSK-3', page 281, being an affidavit of Alex sworn on 14 March 2024 [8].
See also First Stratton-Kent Affidavit, 'MSK-2', pages 27 - 29, being the First Alex Kent NSW Affidavit,
'AK1' (Clara's will).
56 First Stratton-Kent Affidavit, 'MSK-1', page 19, being the First Alex Kent NSW Affidavit [68].
57 First Stratton-Kent Affidavit, 'MSK-3', page 421, being a settlement statement annexed to an affidavit
sworn by Alex on 14 March 2024.
58 First Stratton-Kent Affidavit, 'MSK-1', page 19, 'MSK-2', pages 253 - 258, being the First Alex Kent NSW
Affidavit [71], 'AK1' (Memorandum of Transfer).
59 First Stratton-Kent Affidavit, 'MSK-1', page 19, being the First Alex Kent NSW Affidavit [66], [72]. See
also First Stratton-Kent Affidavit, 'MSK-2', page 255 - 256, being the First Alex Kent NSW Affidavit, 'AK1'
(Certificate of Title).
60 First Stratton-Kent Affidavit, 'MSK-2', pages 27 - 29, being the First Alex Kent NSW Affidavit, 'AK1',
(Clara's will).
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59 Carlotta Road was sold in May 2016 for $4,400,000.61 Alex
alleges that $2,857,703.05 from the proceeds of sale of Carlotta Road
was disbursed to Andrew and $600,000 to Clara's estate.62
The allegations made in the NSW Proceeding
60 The allegations made in the NSW Proceeding concern alleged
breaches of duty by Andrew and knowing involvement by each of
Ileveter, Drysdale and Blue Sea. As outlined, in the Administrator's
submissions, those allegations may be summarised as follows:
(a) as executor of Clara's estate and trustee of the Testamentary
Trusts, Andrew owed the following fiduciary duties to each of
Laura, Alex and Hugo as beneficiaries:
(i) a duty to administer Clara's estate in accordance with the
terms of Clara's will;63
(ii) a duty to avoid making any profit personally from his
use or application of trust assets without first obtaining
the fully informed consent of the beneficiaries of the
trust;64
(iii) a duty not to allow himself to be or remain in a position
where his interests or the interests of a person other than
Laura, Alex or Hugo were preferred by him, or were in
conflict with, the interests of the estate or his obligations
as trustee of the Testamentary Trusts;65
(iv) a duty to keep and maintain proper accounts, books and
records in respect of dealings with assets of the estate
and of the Testamentary Trusts;66 and
(v) a duty to account for all dealings with trust or estate
assets;67
61 First Stratton-Kent Affidavit, 'MSK-1', page 20, 'MSK-2', page 261, being the First Alex Kent NSW
Affidavit [77], 'AK1'.
62 First Stratton-Kent Affidavit, 'MSK-1', page 20, being the First Alex Kent NSW Affidavit [78]; First
Stratton-Kent Affidavit, 'MSK-3', page 421, being a settlement statement annexed to an affidavit sworn by
Alex on 14 March 2024.
63 NSW ASOC [44(a)].
64 NSW ASOC [44(b)].
65 NSW ASOC [44(c)].
66 NSW ASOC [44(d)].
67 NSW ASOC [44(e)].
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(b) Andrew transferred the shares in Ileveter to himself when those
shares formed part of Clara's estate;68
(c) Andrew caused Bedford Street to be transferred to himself, as
trustee of the Residue Trust, and received:
(i) the rental income from that property since 2003 in
breach of trust;69
(ii) the proceeds of the sale of that property in January
2023;70
(d) Andrew caused Carlotta Road to be transferred to himself, as
trustee of the Carlotta Trust, and:
(i) Alex alleges that he was not aware that Andrew
mortgaged Carlotta Road in favour of any loans;71
(ii) in May 2016, Andrew received the proceeds of the sale
of Carlotta Road, save for $400,000 that was deposited
into the 'Estate Account',72 and remained in the Estate
Account;73
(e) Andrew:
(i) on 2 June 2016, caused $600,000 from the proceeds of
sale from Carlotta Road to be paid from the 'Andrew
and Maria Account' to Aspermont in exchange for
shares in Aspermont's public share issue;74
(ii) on 23 June 2016, caused $1,250,000 from the proceeds
of sale from Carlotta Road to be paid from the Andrew
and Maria Account to Aspermont in exchange for shares
in Aspermont's public share issue;75
68 NSW ASOC [49] - [61].
69 NSW ASOC [62] - [70].
70 NSW ASOC [62] - [64], [71] - [75].
71 NSW ASOC [81].
72 The 'Estate Account' is a bank account Andrew maintained with National Australia Bank numbered
84-0491631 in the name of 'Andrew Kent as trustee for the estate of Clare Kent'. See NSW ASOC [83].
73 NSW ASOC [76] - [87].
74 NSW ASOC [88] - [95].
75 NSW ASOC [88] - [97].
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(iii) on 24 June 2016, caused Aspermont to issue shares as
follows to the following entities:76
(A) 95,685,209 to Drysdale;
(B) 43,007,140 to Ileveter;
(C) 3,984,375 to Anniss; and
(D) 23,958,334 to Blue Sea;
(f) each of Drysdale, Ileveter and Blue Sea received the shares in
Aspermont with knowledge that Andrew had used funds from
the sale of Carlotta Road in breach of his fiduciary duties, and
participated in Andrew's breaches of fiduciary duties;77
(g) as at 5 July 2016, there remained approximately $1,200,000 to
the credit of the Andrew and Maria Account,78 being
the remaining funds from the sale of Carlotta Road, and those
funds:79
(i) were used by Andrew for his personal expenses, without
permission from the beneficiaries of the Carlotta Trust;
(ii) have been used by Maria for her personal expenses,
without permission from the beneficiaries of the Carlotta
Trust; or
(iii) remain unaccounted for; and
(h) by reason of the breaches of fiduciary duties, Clara's estate has
suffered loss and damage in the amount of lost assets to the use
and benefit of Andrew, Ileveter, Drysdale and Blue Sea in the
amount of $6,556,952.37.80
76 NSW ASOC [99].
77 NSW ASOC [115] - [119].
78 The 'Andrew and Maria Account' is an account Andrew and Maria maintained with the National Australia
Bank numbered 89-486-6670. See NSW ASOC [45].
79 NSW ASOC [102] - [112].
80 This sum is the total of the following monies pleaded in the NSW ASOC: The 'Residue Trust' being a total
of $2,655,215.32 made up of $1 million [67], $904,865.32 and $750,350 [72] - [74]; and the 'Carlotta Trust'
being a total of $3,901,737.05 made up of $500,000, $2,857,703.05 [79] - [82], $344,034 [85], and $200,000
[86].
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61 Alex, in his capacity as administrator of Clara's estate, seeks the
following relief:
(a) a declaration that Andrew was in breach of fiduciary duties
owed by him to the beneficiaries of Clara's estate;
(b) as against Ileveter, Drysdale and Blue Sea:
(i) a declaration that they each hold a number of the
Aspermont Shares on trust for him, as administrator of
Clara's estate;
(ii) an order that each of Ileveter, Drysdale and Blue Sea do
all things necessary to cause the Aspermont Shares held
by each of them to be transferred to him;
(iii) an account of any profits received by Ileveter, Drysdale
and Blue Sea from their ownership of the Aspermont
Shares; and
(iv) further, or alternatively, equitable compensation to be
paid to him by Ileveter, Drysdale and Blue Sea in
respect of any loss or damage suffered by the Clara's
estate arising from their receipt of the Aspermont
Shares;
(c) relevantly, as against the Administrator:
(i) an account, including of profits received by Andrew's
estate for and in respect of Andrew's dealings with the
assets of Clara's estate;
(ii) equitable compensation to be paid from Andrew's estate
in respect of loss or damage alleged to have been
suffered by Clara's estate from Andrew's alleged
breaches of duty;
(iii) a declaration that the Administrator's registration with
ASIC as the owner of all the issued shares in Ileveter is
invalid and that Alex is the owner of them in his
capacity as administrator of Clara's estate; and
(iv) an order that the Administrator do all things necessary
to cause all of the shares in Ileveter to be registered with
ASIC in Alex's name; and
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(d) an order that Alex is entitled to trace the assets of Clara's estate
held by the defendants, which represent the proceeds of the
alleged breaches of duty by Andrew.
62 Relief is also sought against Maria in her personal capacity. Maria
is separately represented in defending the claims against her personally.
This Application relates only to the defence of the NSW Proceeding by
Maria in her capacity as the Administrator of Andrew's estate.
Applicable principles - s 92 of the Trustees Act 1972 (WA)
63 An administrator, executor or trustee is entitled to seek directions
and judicial advice from the court in relation to any question arising in
relation to any will or administration of an estate or in respect of
property of an estate or trust.
64 The principles that apply to applications made under s 92 of the
Trustees Act are well established. Directions given by the court under
s 92 of the Trustees Act enable a trustee to avail themselves of the
protections granted by s 95(1). Section 92 of the Trustees Act provides:
92. Directions, trustee may ask Court for
(1) Any trustee may apply to the Court for directions
concerning any property subject to a trust, or respecting
the management or administration of that property, or
respecting the exercise of any power or discretion
vested in the trustee.
(2) Every application made under this section shall be
served upon, and the hearing thereof may be attended
by, all persons interested in the application or such of
them as the Court thinks expedient.
65 Section 95 provides, relevantly:
95. Trustee acting under Court's direction, protection of
(1) Any trustee acting under any direction of the Court
shall be deemed, so far as regards his own
responsibility, to have discharged his duty as trustee in
the subject-matter of the direction, notwithstanding that
the order giving the direction is subsequently
invalidated, overruled, set aside or otherwise rendered
of no effect, or varied.
…
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66 The principles that apply to the court's power and the exercise of
its discretion under s 92(1) of the Trustees Act were considered by
Martin CJ in Australian Executor Trustee Ltd v Attorney General
(WA).81 They have also been the subject of consideration in numerous
other cases in this court.82
67 A trustee, including an administrator of a deceased estate, if in
doubt about the course of action to be adopted in the course of
administration of the estate or trust, may apply to the court for its
opinion, direction or advice pursuant to s 92.83
68 The key principles that apply in an application for directions in
respect of litigation were summarised by Vaughan J84 in Blatchford v
Laine, as follows:85
(1) There is a 'jurisdictional bar' under s 92(1). However, that is
simply that the applicant must point to a question respecting the
management or administration of trust property or a question
respecting the interpretation of a trust instrument.86
The jurisdiction is enlivened when the question raised for
directions is whether the trustee is justified in prosecuting or
defending a particular claim.87
(2) The court has a discretion as to whether to provide a direction
under s 92(1). Advice does not have to be provided.88
(3) The key question is to determine whether, on the material
available, it would be proper for the trustee to prosecute or
defend the proceedings.89 That in turn involves two issues. First,
whether the legal issues are properly arguable. Second, whether
there are sufficient prospects of success to warrant the trustee in
81 Australian Executor Trustee Ltd v Attorney General (WA) [2015] WASC 439 [31] - [33].
82 See for example, Equity trustees Wealth Services Limited v The Attorney General of Western Australia
[2024] WASC 324 [29] - [31] (Seaward J); AA as executor of the estate of BB v XX [No 2] [2024]
WASC 39 (AA v XX [No 2]); Blatchford v Laine [2018] WASC 207 [48] - [55] (Vaughan J); Wood
(as Co-Executor and Trustee of the Will of the Deceased) v Wood [No 4] [2014] WASC 393 (Wood [No 4])
[98] - [103] (Kenneth Martin J), each applying in a Western Australian context Macedonian Orthodox
Community Church St Petka Inc v His Eminence Petar The Diocesan Bishop of the Macedonian
Orthodox Diocese of Australia and New Zealand [2008] HCA 42; (2008) 237 CLR 66 (Macedonian
Church) [55] - [76], [162] (Gummow ACJ, Kirby, Hayne & Heydon JJ).
83 AA v XX [No 2] [27], referring to Tsaknis v Lilburne [2010] WASC 152 (Tsaknis) [38] (E M Heenan J);
In re Atkinson (dec) [1971] VicRp 73; [1971] VR 612, 615.
84 As his Honour then was.
85 Blatchford v Laine [57].
86 Wood [No 4] [103(b)].
87 Wood [No 4] [103(b)].
88 Wood [No 4] [103(c)].
89 Macedonian Church [74].
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proceeding with the litigation.90 These enquiries necessitate
'sufficient investigation' of the underlying issues.91
(4) The judicial advice proceedings are not to be treated as a trial of
the issues that are to be agitated in the principal proceedings.92
The process is meant to be a summary one.93
(5) The court is not bound to investigate the evidence and make a
finding as to whether the proposed proceedings would be
successful. The question is whether the litigation is justified.94
The court is not finally resolving the merits of the underlying
proceedings.95
(6) Relevant overlapping considerations include: (a) the prospects
of success; (b) the means of the other party to satisfy any
judgment; (c) the potential for the litigation to deplete the trust
estate; (d) the likely adverse costs if the litigation is
unsuccessful and whether those costs are likely to be
proportionate; (e) the likely irrecoverable costs; and (f) the
nature of the case and issues raised and what will be gained if
the trustee succeeds in the action.96
69 Justice Vaughan emphasised in Blatchford v Laine that:97
… examination of the trustee's likely prospects in the litigation at an
'exhaustive level' is neither necessary nor appropriate.98 The assessment
is made at a 'preliminary level'.99 The court's role is not to try the issues
themselves. The court's function is limited to being satisfied that the
material before it is sufficient to determine the general range of the
prospects of success; and determining whether it is appropriate to
pursue the proceedings having regard to the prospects of success, the
benefits of the litigation and the resources available.100 But there must
be sufficient information before the court for it to be satisfied that the
proposed action would be for the benefit of the beneficiaries as a whole
and otherwise would be prudent to pursue.101
90 Macedonian Church [162].
91 Wood [No 4] [134] - [135] (see also [181]).
92 Macedonian Church [74].
93 Macedonian Church [61] - [63]; Wood [No 4] [13], [103(e)], [181].
94 Re Estate of Anastasios Keriacules Challis (dec) [2010] WASC 333 (Re Challis) [30].
95 Wood [No 4] [134].
96 Plan B Trustees Ltd v Parker [No 2] [2013] WASC 216; (2013) 11 ASTLR 242 (Plan B) [37]. See also
Macedonian Church [162] and Re Challis [30].
97 Blatchford v Laine [58].
98 Application of Macedonian Orthodox Community Church St Petka Inc [No 2] [2005] NSWSC 558;
(2005) 63 NSWLR 441 [67] - [69].
99 Tsaknis [42].
100 Re Addstone Pty Ltd (1997) 25 ACSR 357, 371. See also In re Atkinson (dec) (615) - (616).
101 Re Challis [30].
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70 The same principles apply in relation to judicial advice as to
whether a trustee or administrator would be justified in defending a
claim brought against an estate. In Boyle v Farano,102 Quinlan CJ
observed that 'while every application of this kind depends on its own
facts, the assessment of whether the conduct of certain litigation is
'justified' must be viewed in the context of the duties of an
administrator generally, which include the basic obligation to secure the
assets of the estate, for the benefit of the beneficiaries as a whole.
His Honour referred to Munro v Munro,103 in which Stanley J said:
The basic obligation of an executor is to identify and take steps to
secure the assets of the estate. In certain circumstances, that may
necessitate the executor litigating claims against, or defending claims
by, third parties, and compromising the same.
While it is the duty of the executor to discharge obligations of the
deceased, it is equally the duty of the executor not to ignore available
defences to any claim to enforce the obligation, and even to make use of
available opportunities to compromise those claims. …
…
Accordingly, the duties of an executor are not limited to simply
identifying assets and liabilities, whether they be present liabilities or
contingent liabilities. It extends to protecting the estate from claims that
are defensible.
(citations omitted)
71 In an application such as this, the plaintiff may file an opinion of
counsel as to the likely prospects in any litigation.104 Differing views
have been expressed as to the necessity of counsel's advice.105 The court
cannot abdicate to counsel the task of determining the proceedings'
prospects of success.106 It will ultimately depend on the circumstances
of the case at hand as to whether such advice is necessary.
72 Senior counsel indicated at the hearing of the Application that he
had prepared an opinion, which the plaintiff would file on a
confidential basis if the court considered it appropriate. The opinion
was subsequently filed on a confidential basis that maintains the
Administrator's client-legal professional privilege. I have considered it
102 Boyle v Farano [2023] WASC 303 [72], referring to In re Evans [1986] 1 WLR 101, 106 (Nourse LJ);
Blatchford v Laine [88].
103 Munro v Munro [2017] SASC 48 [23] - [25] (Stanley J).
104 Read v Bowesco Pty Ltd [2013] WASC 240 [16] (Master Sanderson).
105 See Blatchford v Laine [59] - [66] and the authorities referred to.
106 Blatchford v Laine [63] - [64], citing Plan B [48].
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and refer to it only to the extent required and without disclosing its
privileged and confidential contents.
73 The opinion demonstrates that the Administrator has taken
reasonable steps to identify whether there are reasonable prospects of
defending the claims made before approaching the court for directions,
and to ascertain the likely benefit to Andrew's estate of participating in
the litigation compared to the likely costs.
Determination
74 For the purpose of the Application for directions, I am to
determine whether the Administrator would be justified in defending
the NSW Proceeding and to use funds from the Estate in order to do so.
Is the Administrator justified in defending the claims brought against
Andrew's estate in the NSW Proceeding?
75 The ultimate outcome of the NSW Proceeding is of course a
matter for the court hearing the action and will be subject to the
evidence adduced and tested by cross-examination. As outlined, the
process I am to undertake for the purpose of this Application is a
summary one, which requires no more than undertaking sufficient
investigation of the underlying issues to satisfy myself that the
proposed defence has reasonable prospects and is otherwise justified.
76 In general terms, the underlying issues for determination in the
NSW Proceeding concern the beneficial ownership of the shares in
Ileveter, related questions as to ownership of the shares in Anniss and
who are the beneficiaries of the BK Investment Trust. As outlined on
behalf of the Administrator, the overarching issues that arise are:
(a) whether the shares in Ileveter were assets of Clara's estate; and
(b) whether part or all of the sale proceeds of Bedford Street and
Carlotta Road were used by Andrew for his own purposes or in
discharge of his obligations as trustee of the Testamentary
Trusts.
77 In relation to the first of those issues, Alex contends that:
(a) Anniss held the shares in Ileveter on trust for Bela;107
107 NSW ASOC [27].
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(b) on his death in 1982, Bela bequeathed all his property to
Clara;108
(c) Bela's estate included the equitable ownership of all the issued
shares in Ileveter;109 and
(d) as a result, Clara owned all the issued shares in Ileveter.110
78 Ileveter, Blue Sea, and the Administrator, as defendants in the
NSW Proceeding, deny that. It was submitted on behalf of the
Administrator that the contentions made by Alex are based on
assumptions without evidence and will not be made out for the reasons
outlined in the Administrator's submissions.111
79 In summary, it is submitted on the Administrator's behalf that
there is no evidence:
(a) that either Bela or Clara was ever the legal or equitable owner
of the Ileveter shares;
(b) of a nomination of a Specified Beneficiary or an Income
Beneficiary (as those terms are defined in the relevant trust
deed) to the BK Investment Trust;112
(c) that Bela was entitled to any assets held by the BK Investment
Trust at the date of his death; nor
(d) that Bela had a will or bequeathed all his property to Clara such
that Clara would have been entitled to the assets of the
BK Investment Trust following Bela's death.
80 By way of defence, the Administrator, Ileveter and Blue Sea
contend that the evidence available to date supports the contention that
Andrew was the beneficial owner of at least two shares in Anniss and
the two shares in Ileveter, as outlined earlier in these reasons.
81 As to the second of those issues, Ileveter, Blue Sea and the
Administrator say that, following Clara's death and during the
administration of her estate, Andrew had given the beneficiaries of
Clara's estate forward advances on their interests in Clara's estate so
108 NSW ASOC [29].
109 NSW ASOC [30].
110 NSW ASOC [36].
111 Administrator's submissions [41] - [44].
112 See First Stratton-Kent Affidavit, 'MSK-2', pages 73 - 98, being the First Alex Kent NSW Affidavit, 'AK1'
(BK Investment Trust Deed).
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that, at the date of Andrew's death, there was nothing owing to Alex but
it may be that funds were still owing to Laura and Hugo.113
The advances made are said to include:
(a) the provision to Alex of a deposit for an apartment in Terrace
Road, Perth, Western Australia in around August 2007;114
(b) the provision of $800,000 to Laura to assist with the purchase of
a house in Oxfordshire in the United Kingdom;115
(c) the provision of at least a portion of $500,000 borrowed from
the National Australia Bank secured against Carlotta Road to
Alex and Laura;116
(d) the provision of $1,000,000 to Alex to enable Alex to acquire
Aspermont shares;117
(e) the transfer of 4,000,000 shares in Aspermont to Mega Hills, an
entity associated with Alex in 2007;118
(f) provision of monies to Laura for the payment of her daughter's
school fees;119
(g) regular transfers of money to Laura through Andrew's ex-wife,
Jane, Laura's mother, and through Transferwise to the value of
at least $129,107.76;120
(h) transfers to Alex via Ileveter;121
(i) the purchase of an engagement ring for Alex in 2009 or 2010 in
the sum of £10,000;122
113 First Stratton-Kent Affidavit, 'MSK-12', pages 1203 - 1208, being the Stratton-Kent NSW Affidavit
[70] - [74], [85] - [93], 'MSK01'.
114 First Stratton-Kent Affidavit, 'MSK-12', page 1203, being the Stratton-Kent NSW Affidavit [70],
'MSK01'.
115 First Stratton-Kent Affidavit, 'MSK-12', page 1204, being the Stratton-Kent NSW Affidavit [71].
116 First Stratton-Kent Affidavit, 'MSK-12', page 1204, being the Stratton-Kent NSW Affidavit [72] - [73],
'MSK01'.
117 First Stratton-Kent Affidavit, 'MSK-12', page 1204, being the Stratton-Kent NSW Affidavit [74].
118 First Stratton-Kent Affidavit, 'MSK-12', page 1206, being the Stratton-Kent NSW Affidavit [85],
'MSK01'.
119 First Stratton-Kent Affidavit, 'MSK-12', page 1206, being the Stratton-Kent NSW Affidavit [86].
120 First Stratton-Kent Affidavit, 'MSK-12', page 1206, being the Stratton-Kent NSW Affidavit [87] - [88].
121 First Stratton-Kent Affidavit, 'MSK-12', page 1207, being the Stratton-Kent NSW Affidavit [89],
'MSK01'.
122 First Stratton-Kent Affidavit, 'MSK-12', page 1207, being the Stratton-Kent NSW Affidavit [90].
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(j) the transfer of funds to Alex via Drysdale for the benefit of
Alex and Laura in the sum of $US110,000;123 and
(k) the transfer of shares in Aspermont to Laura and Hugo in 2023
to the value of $200,000 each.124
82 The claims made and relief sought by Alex in the
NSW Proceeding directly concern property which forms part of
Andrew's estate.
83 Based on Alex's evidence in the NSW Proceeding, as outlined, the
shares in Ileveter have an estimated value of approximately
$13 million, which forms a significant proportion of the estimated value
of Andrew's estate. The amount claimed in the NSW Proceeding, which
if undefended may be payable from Andrew's estate, is approximately
$6.5 million.
84 I am satisfied on the materials filed in support of the Application
and having regard to the confidential opinion of counsel, that the
defences outlined are arguable and have sufficient prospects of success
in relation to all or part of the claims made, such that the Administrator
would be justified in defending the claims made against her in
that capacity.
85 I accept the submissions made on behalf of the Administrator that
it is appropriate that the Administrator participate in and defend the
claims made against her in the NSW Proceeding. If she does not, there
will be no contradictor on behalf of Andrew's estate, and the claims
made on behalf of Clara's estate would proceed uncontested.
This would expose Andrew's estate and the beneficiaries to the risk of
an adverse judgment for the return of profits and/or payment of
equitable compensation to Clara's estate, which would significantly
diminish the value of Andrew's estate and the amount to be paid to
the beneficiaries.
86 By comparison, the estimated costs of defending the NSW
Proceeding, including the costs incurred to the date of the hearing of the
Application, to the end of the trial, are $420,000.125
123 First Stratton-Kent Affidavit, 'MSK-12', page 1207, being the Stratton-Kent NSW Affidavit [91],
'MSK01'.
124 First Stratton-Kent Affidavit, 'MSK-12', page 1207, being the Stratton-Kent NSW Affidavit [92].
125 Third Stratton-Kent Affidavit [11].
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87 I am satisfied that the Administrator is justified in defending the
claims brought against Andrew's estate in the NSW Proceeding, for the
reasons outlined.
Is the Administrator justified in using funds from Andrew's estate in
defending the claims against the estate in the NSW Proceeding?
88 Having determined that the Administrator would be justified in
defending the NSW Proceeding, I turn to consider whether she would
be justified in using funds of Andrew's estate to do so.
89 Lundberg J recently considered the nature of the right of a trustee
to be indemnified in respect of costs and expenses, including in respect
of costs incurred in defending litigation brought against them, in
Moyle v Quarles [No 3].126 His Honour referred, amongst other
authorities, to Cardaci v Cardaci,127 in which the Court of Appeal
expressed the general principles, to which I also refer. It is not
necessary that I repeat them.
90 It is sufficient to observe that, in the circumstances of this case,
where the Administrator has sought and obtained a direction from the
court that she is justified in defending what may be categorised as claim
by a third party for the benefit of the estate,128 as opposed to protecting
her own personal interests, her right to an indemnity should extend to
the costs reasonably incurred in defending the proceedings. As stated
by Lundberg J in Moyle v Quarles:129
In general terms, … putting to one side those cases where a trustee or
executor is in truth defending their own interests, the general principle
is that the trustee or executor will be 'safeguarded as to costs' in
defending proceedings brought against the trust or the estate. I accept
the general proposition that, even in the absence of a judicial direction,
unless the executor is defending their own interests, an executor is
entitled to be indemnified out of estate assets for all costs reasonably
and properly incurred in the administration of the estate, and this may
include costs in the defence of litigation.
(citations omitted)
91 In the circumstances of this case, I am satisfied that the
Administrator is justified in using funds from Andrew's estate to meet
126 Moyle v Quarles [No 3] [2025] WASC 443 (Moyle v Quarles) [634] - [647]. See also Mainray
Nominees Pty Ltd v Stoate [2025] WASC 145 [106] - [108] (Gething J).
127 Cardaci v Cardaci [2023] WASCA 158 [568] - [576].
128 As referred to in Alsop Wilkinson (a firm) v Neary [1996] 1 WLR 1220, 1224 (Lightman J).
129 Moyle v Quarles [643].
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the reasonable costs of defending the claims made against her as
Administrator in the NSW Proceeding. As submitted on behalf of the
Administrator, this is not a case in which claims are brought against the
Administrator alleging any wrongdoing or breach of duty on her part.
Rather, the Administrator seeks to defend claims made to protect the
assets of the estate and the interests of the beneficiaries.
92 As to the costs of the Application, I refer to Allanson J's summary
of the relevant principles in Cardaci v Cardaci,130 which I consider
apply in the circumstances of this Application. The questions upon
which the Administrator has sought directions are such that, in my view
and subject to hearing from the parties, the costs of the Application
should be paid out of Andrew's estate, as sought.
Conclusion and orders
93 For these reasons, I accept the plaintiff has standing to seek the
advice of the court pursuant to s 92 of the Trustees Act and that it is
appropriate to exercise my discretion to give the Administrator
directions on the issues raised. In my view, the Administrator would be
justified in defending the claims made against her, in her capacity as the
Administrator of Andrew's estate in the NSW Proceeding, and to fund
the defence of those claims from funds of the estate.
94 It also seems appropriate, in the circumstances of this case, that
the Administrator's costs of the Application should be paid out of
Andrew's estate. However, noting that Alex's and Laura's notice of
intention to abide is stated to be other than in relation to costs, they
should have the opportunity to be heard in relation to the costs of the
Application, before any orders are made.
95 As such, at this stage, I will make orders to the following effect:
1. Pursuant to s 92 of the Trustees Act 1962 (WA), it is directed
that the plaintiff, Maria Violet Stratton-Kent, in her capacity as
administrator of the estate of the late Andrew Leslie Kent
(Estate), is justified in:
(a) defending the claims made by Alexander Lawrence
Kent, in his capacity as administrator of the deceased
estate of Clara Kent, in the Supreme Court of New
South Wales action 2024/00246219 (NSW
Proceeding); and
130 Cardaci v Cardaci [2022] WASC 166 [104] - [105].
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[2026] WASC 286
MASTER RUSSELL
Page 29
(b) using funds of the Estate for the purpose of defending
the NSW Proceeding.
2. By 24 July 2026, the plaintiff and the first and second
defendants are to confer in relation to the costs of the
Application and:
(a) if agreement is reached, file a memorandum of consent
orders; or
(b) if agreement is not reached, the plaintiff and the first and
second defendants are to file a minute of their proposed
orders in relation to the costs of the Application.
I certify that the preceding paragraph(s) comprise the reasons for decision of
the Supreme Court of Western Australia.
SC
Associate to Master Russell
14 JULY 2026
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