BS (No 2) [2011] QCAT 733
CITATION: BS (No 2) [2011] QCAT 733
PARTIES: BS
APPLICATION NUMBER: GAA7264-10
MATTER TYPE: Guardianship and administration matters
for adults
HEARING DATE: 28 March 2011
HEARD AT: Ipswich
DECISION OF: Ron Joachim, Presiding Member
Graham Quinlivan, Member
DELIVERED ON: 6 July 2011
DELIVERED AT: Brisbane
ORDERS MADE: [1] Leave is granted to Ben Turner to
withdraw his application for a
compensation order.
[2] That the Public Trustee of
Queensland pay BS compensation.
[3] That the applicant and respondent
provide written submissions to the
Tribunal by 4pm on 5 August 2011
regarding the amount of
compensation to be paid with
respect to the following items:
Lounge suite;
Washing machine;
XR 250 motor bike;
Chainsaw;
Evaporative air cooler;
Tool box;
Grinders;
Drills;
Mulcher;
CDs and DVDs;
Crockery and cutlery;
Kitchen tables and chairs;
Microwave;
CD stacker;
3 wardrobes;
Dressing table;
Exercise bike;
Treadmill;
Sound system;
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Coffee table;
Lamps.
CATCHWORDS: Administration – compensation against the
Public Trustee of Queensland as
administrator – where Queensland Health
employee brought application for
compensation – where applicant’s employer
seeks to have application withdrawn –
where Tribunal accepts verbal application
from adult’s brother – where Tribunal waives
procedural requirements – where the Public
Trustee requests adjournment to produce
further oral evidence – where Tribunal
decides there will be no further oral
evidence and invites final written
submissions – where Public Trustee claims
he is denied procedural fairness – where
Public Trustee has engaged solicitor to
negotiate property settlement between adult
and former de facto – where Tribunal
concerned about lack of protection of adult’s
personal property – where adult’s personal
property is not subject of property settlement
and goes missing – where Public Trustee
warned that adult’s property at risk – where
Tribunal finds Public Trustee has not acted
with reasonable diligence – where Tribunal
makes an order for compensation
Guardianship and Administration Act 2000,
ss 59,155
Trusts Act 1973, s 22
Queensland Civil and Administrative
Tribunal Act 2009, ss 28, 61
Briginshaw v Briginshaw (1938) 60 CLR 336
HLB v Trust Company Ltd [2010] QCAT 40
WCD Re [2006] QGAAT 27
WCD No 2 Re [2006] QGAAT 44
APPEARANCES and REPRESENTATION (if any):
APPLICANT: BL
RESPONDENT: Ms J Waldron representing the Public
Trustee of Queensland
Ms P Feenley of counsel representing Mr
Turner
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REASONS FOR DECISION
Background
[1] BS was born on 11 June 1965. He lives in the Ipswich area.
[2] BS had a motor cycle accident in December 2005 and as a result has an
acquired brain injury.
[3] He first came to the attention of the former Guardianship and
Administration Tribunal when the Tribunal received an application on
5 May 2006 from an Ipswich Hospital social worker. This application
sought the appointment of the Public Trustee of Queensland as
administrator for BS and the appointment of the Adult Guardian as
guardian.
[4] The Tribunal made orders on 17 July 2006 as requested in the application.
The Public Trustee of Queensland was appointed for all financial matters
until further order. The Adult Guardian was appointed for two years for
accommodation, health and service provision decision.
[5] The Tribunal made further guardianship orders between July 2006 and
March 2010.
[6] When the Tribunal was contacting parties in relation to a further review of
guardianship in 2010, it received a letter dated 5 March 2010 from Ben
Turner from the Acquired Brain Injury Outreach Service of Queensland
Health. Mr Turner had been working with BS in his capacity of
Rehabilitation Coordinator since March 2009.
[7] In this letter Mr Turner raised concerns of family members about the lack of
communication with the Public Trustee of Queensland and family concerns
over the Public Trustee’s perceived actions and inaction.
[8] As a result the Tribunal initiated a review of the Public Trustee’s
appointment and this review occurred on 23 March 2010 along with the
review of the appointment of the Adult Guardian.
[9] The Tribunal continued the Public Trustee’s appointment and made the
following directions:
That within three (3) months the administrator provide to the Tribunal and
the adult’s mother, a written report of his actions or proposed actions in
respect of the issues raised in Mr Turner’s letter of 5 March 2010 to QCAT
which outlined concerns over the actions and inactions of the administrator.
That within three (3) months the administrator provide to the Tribunal and
the adult’s mother a written report of his actions or proposed actions in
respect of the adult’s AMP whole of life endowment policy having been
cashed in.
That these reports outline whether the administrator proposes to
compensate the adult for any loss caused by the administrator’s actions or
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inactions.
[10] The Public Trustee provided his report to the Tribunal on 23 June 2010.
The response to the three directions is summarised below.
The Public Trustee acknowledges that communication has been an
issue raised by BS and his family in the past. Communication occurs
on a regular basis between a Senior Trust Officer and Mr Turner,
BM, BS and BL.
The Public Trustee retained Peter Sheehy Solicitors to negotiate the
terms of the property settlement between BS and his de facto partner
BB. Ms Kingswell was Solicitor in the case and acted exclusively for
BS. Ms Kingswell advised that the time taken to reach settlement
was not excessive. Ms Kingswell confirmed that BS contacted her
office during the negotiations and was kept informed about the
progress. Peter Sheehy Solicitors advised that BB should be allowed
to remain in the property until negotiations were finalised.
The Public Trustee is and was under a legal obligation to ensure that
the agreed amounts and time frames stated within the Separation
Agreement were adhered to. Advice was sought from the Public
Trustee’s Official Solicitor as well as BS’s own legal representative,
Ms Kingswell, in relation to the $10,000.00 and the state of the
property and advised that any property and/or property damage
should be raised with BB or claimed through the Small Claims
Tribunal. The Public Trustee’s Property Inspector visited the
property after the premises were vacated and has commented that
the property is in similar condition to previous annual inspections he
carried out allowing for the natural wear and tear.
BS’s property in Walloon has been readied for sale. The Public
Trustee has approved BL listing the property for sale, as he is a real
estate agent.
Statement of Transactions are sent by the Public Trustee to BS
annually detailing fees charged in the relevant statement period. The
statement dated 10 March 2010 states that $4,180.99 was paid to
Peter Sheehy Solicitors, who acted on BS’s behalf during the
property settlement.
The Public Trustee has regularly explained expenditure of funds to
BS as well as sending annual Statement of Transactions.
BS’s semi-trailer was sold in March 2007 for $55,000.00 and the
prime-mover was sold in October 2007 for $75,000.00. Both of these
items were sold by the Public Trustee. An amount of $75,000.00
was repaid to BM in December 2007 for a loan she had made to BS.
The balance of the remaining funds were expended on every day
living expenses, general repairs and maintenance on BS’s house and
vehicles. There were also funds spent on accounting/taxation costs
associated with the winding up of BS’s business.
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The Public Trustee is obligated to continue paying Child Support
payments on behalf of BS to BB.
The Public Trustee’s authority was sent to AMP via an initial letter on
31 October 2006 and accepted by AMP as sufficient evidence of The
Public Trustee’s appointment.
In January and February 2007 BS withdrew amounts totalling
$28,000.00 from his AMP account without notifying the Public
Trustee of his actions.
When the Public Trustee became aware of these transactions action
was taken to withdraw the remaining funds.
BS and his ex-partner BB deposited the above withdrawals into a
newly opened joint bank account. The Public Trustee was not
notified by BS of the bank account set up for these funds. The bank
statement for the joint account shows that the funds were spent over
a period of 7 months. On 30 August 2007 the account was closed
because it was overdrawn.
The Public Trustee is investigating the processing of the withdrawals
from SB’s AMP account. AMP has advised that the Public Trustee’s
Authority was overlooked and the withdrawals were processed due to
human error. The Public Trustee is currently awaiting a response
from AMP as to what, if any, actions they will be taking in regard to
this error.
The Public Trustee has not identified that any actions or inactions by
this Office as administrator has caused BS to suffer a loss of funds.
However, one aspect of this matter is still ongoing. Upon finalisation
this will be reviewed.
[11] On 15 July 2010 Mr Turner sent a further letter to the Tribunal.
Subsequent correspondence of 13 October 2010 and 16 March 2011 was
also sent to the Tribunal outlining BS’s family’s concerns about these
matters and raising other issues to do with the administration.
[12] The concerns raised by Mr Turner in his various letters and an email of
14/12/09 as they relate to the application for compensation can be
summarised as follows:
A lack of communication between BS, his family and the Public
Trustee such that the family feel their views were not listened to
throughout the settlement process and the process of sale of the
property despite their efforts to contact the relevant officer.
BS and his family expressed concerns that BS’s solicitor appeared
more interested in protecting the rights of the ex partner and that she
was able to reside at the property. He received a copy of the
financial settlement agreement in September 2010 despite it being
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signed on 11 November 2009. The family dispute the Public
Trustee’s contention that “there does not appear to have been any
concerns raised prior to the execution of the agreement that BB may
cause significant damage to the property and/or take from the house
items that were not her personal property.” The family contend the
Public Trustee was repeatedly notified of the likelihood of BB taking
BS’s property. At a property inspection on 2 July 2009, BB
repeatedly said in front of the Public Trustee inspector “I’m taking the
lot when I leave.”
BS and his family are of the opinion that the Public Trustee failed to
protect his assets in negotiating the separation agreement. The
Public Trustee were notified by email from Mr Turner on
14 December 2009 about concerns over damage and removal of
property following a visit to the property by the SSs on 11 December
2009 to inspect the property. This email particularised the missing
items. The concerns were never addressed. The family were led to
believe that a clause would be incorporated in the final agreement to
protect BS’s assets and property, including leaving items in a
reasonable condition. No such clause was inserted, with the
resultant loss of property and the property being left in an adverse
condition.
Additionally the family wish the Tribunal to consider compensating
BS for costs in respect of the separation agreement of which they
claim the process was poorly handled.
The family dispute the Public Trustee's assertions that the property
deterioration is the result of normal wear and tear. They assert that
the Public Trustee did not maintain the property properly and it was
not satisfactorily vacated by BB. In their opinion the property was not
left in an acceptable state, BS’s assets were taken and no action had
been taken regarding this. The family question the statement that
the property was left in a condition similar to previous annual
inspections.
BS and his family would like to receive information to confirm his
expenditure.
BS wants to know what happened to the proceeds of the sale of his
truck and trailer.
BS and his family are concerned that no action was taken to
investigate claims that an insurance claim in BS’s name was
accessed by his ex partner.
Despite an agreement to sell BS’s motor vehicle and jet ski to the
family, the items were transported to the auctioning facility at Zillmere
at his expense, which also included storage costs.
The family are concerned payments by the Public Trustee for utilities
occurred when BS was not residing at the property.
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BS has concerns that the Public Trustee allowed his ex partner to
arrange potential buyers and negotiate a selling price for his truck
and trailer.
BS and his family are concerned about the time taken by the Public
Trustee to act on his loss over the cashing in of his AMP policy when
it was repeatedly raised with them. They are also concerned about
the poor monitoring of the investment by the Public Trustee.
There are also concerns that the Public Trustee failed to act on this
issue during the period in which they were negotiating the separation
agreement with BB.
An email sent to Louisa Ghannoum of the Public Trustee from Mr
Turner on 14 December 2009 identifies a list of items BS and his
mother indicated were missing on a visit to the property the previous
Friday. These items were:
“All carpets need replacing and the walls require painting. All the
window blinds are broken and need replacing, there is a broken
window and a door with a hole in it. The yards are a complete mess
and have not been tendered to in some time.”
[13] On 27 September 2010, the Public Trustee provided a report to the
Tribunal in response to Mr Turner’s letter of July 2010. This is summarised
below:
The Public Trustee property department advised the SS family that
an appraisal of the vehicles could not be conducted at the house at
Walloon as both vehicles needed to be removed from the house in
order to have them appraised. At this point BL indicated that if the
value came in too low he was interested in purchasing the items
himself. Subsequently BL advised he would purchase the vehicles
himself. BL submitted a written offer to purchase the vehicles. This
offer was accepted and BL was informed that prior to taking
possession of the vehicles, he needed to arrange payment. After
several reminder emails BL made the payment. Delivery was
arranged shortly thereafter.
The Official Solicitor engaged a family law expert and accredited
specialist, Mr Peter Sheehy to represent BS with respect to the
matrimonial property settlement. Phillipa Kingswell from Peter
Sheehy Solicitor liaised closely with members of BS’s family in order
to reach an agreement with BB. Formal instructions were provided
by the Public Trustee.
It is usual in family law matters that where there is a shared
residence one party will remain in the property until such time as an
agreement is in place which would enable them to move residences.
BB’s solicitors sought assurances from the Public Trustee that BB
and the children could remain in the property until a separation
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agreement was finalised. BB moved out of the matrimonial home in
accordance with the terms of the separation agreement.
The Public Trustee had no indication prior to the separation
agreement being entered into that the arrangement for BB to remain
in the property was anything less than amicable. There was no
specific clauses included in the agreement that BB was not to
remove property from the house and that she was required to leave
the property in an acceptable state however there does not appear to
have been any concerns raised prior to the execution of the
agreement that BB may cause significant damage to the property
and/or take from the house items that were not her “personal
property” as referred to in clauses 3.4 and 4.3 of the agreement.
The amounts payable to BB under the agreement cannot be set-off
against the value of the items that were removed by BB on her
leaving the property. The payment of $10,000.00 was made to her in
accordance with the terms of the agreement and a further
$15,000.00 remains payable within 30 days of the sale of the
property. While it is unfortunate that BB has taken items which
appear not to fall into the category of “personal property” it was not
overtly apparent that such a situation would occur and that special
clauses would need to be inserted into the agreement to dissuade
such actions.
The settlement agreement is quite favourable to BS.
An initial property inspection was conducted in 2006 and then
annually thereafter. The property inspector’s view is that the property
has undergone deterioration in line with normal wear and tear over
the last 3 years since the Public Trustee’s appointment.
Our records indicate that no telephone accounts were paid during
BS’s unoccupancy. Our records also indicate that only 1 electricity
account was paid during BS’s non-residence and this account was
the finalisation of the account up to the date of BS’s exit from the
property being October 2008.
The SS family agreed that the spending of further funds on the
property would not increase the market value. The Public Trustee is
awaiting advice from BL in relation to the listing of this property,
which on valuations should be marketed for $360,000 and not sold
for less than $340,000.
The Public Trustee sought independent professional valuations of the
truck and trailer prior to their sale. A prospective buyer did approach
BB, who subsequently referred the buyer to this office; however this
sale fell through. Subsequently the truck and trailer were sold after
receiving advice from an agent specializing in truck and trailer utes.
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The Public Trustee has now been advised by AMP that they will not
compensate BS for the loss of his investment. AMP indicated that
BS was not disadvantaged as he obtained the money and spent it.
In light of this information, the Public Trustee can still have the matter
referred to the Official Solicitor; however consideration must be given
to the additional legal costs which will be incurred. These costs may
outweigh the benefits gained by BS.
The application for compensation
[14] On 10 September 2010, the Tribunal received an application from Mr
Turner, seeking compensation from the Public Trustee. His reasons for
seeking an order for compensation were outlined in his application as
follows:
BS and his family are seeking for the Tribunal to make a decision with
respect to appropriate compensation from the Public Trustee of
Queensland for BS. BS and his family are of the belief that the actions
and inactions of the Public Trustee of Queensland, during the time in
which they have been BS’s appointed administrator, have resulted in
significant financial loss and hardship for BS. The concerns of BS and
his family are clearly documented in a letter to the tribunal by Ben
Turner dated 15th July 2010. To enable all parties to move forward, BS
and his family are seeking for the Tribunal to make a compensation
decision in relation to the unresolved matters between BS and the
Public Trustee of Queensland.
[15] The Tribunal conducted a compulsory conference on 23 November 2010,
the purposes for which were:
a. To identify and clarify the issues in dispute in the proceeding
b. To promote a settlement of the dispute the subject of the proceeding
c. To identify the questions of fact and law to be decided by the tribunal
d. If the proceeding is not settled, to make orders and give directions
about the conduct of the proceeding
e. To give orders and make directions the person presiding over the
conference considers appropriate to resolve the dispute the subject
of the proceeding.
[16] The conference failed to resolve any issues and the matter was set down
for hearing on 14 February 2011. Due to the consequences for the SS
family of the floods, the application was rescheduled for hearing in Ipswich
on 28 March 2011.
The Hearing
Preliminary Matters
[17] The Official Solicitor through Ms Jennifer Waldron sought leave to
represent the Public Trustee of Queensland and Ms Patricia Feeney of
counsel sought leave to represent the applicant, Ben Turner. The Tribunal
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considered it would be in the interests of justice for this to occur and leave
was granted.
[18] Ms Feeney advised the Tribunal that Queensland Health for whom Ben
Turner worked, was advised late in the previous week by the Official
Solicitor, about the application.
[19] She submitted this application constituted a serious conflict of interest and
it was inappropriate for one area of government to be bringing an
application of this type against another area of government.
[20] She was seeking leave for Mr Turner to withdraw his application.
[21] The Public Trustee of Queensland did not object to her proposal that BS’s
brother, BL become the applicant. He was agreeable to this.
[22] The Tribunal granted leave to Mr Turner to withdraw his application
verbally and accepted a verbal application from BL seeking an order for
compensation. In this regard the Tribunal invoked section 115 of the
Guardianship and Administration Act 2000 (the Act) and section 61 of the
Queensland Civil and Administrative Tribunal Act 2009. BL's application
was made under section 59 of the Act.
[23] Those preliminary matters are the subject of reasons for decisions as is a
decision not to allow further evidence following the hearing of 28 March but
to allow the parties to provide further submissions and to determine the
matters without further hearing. Those reasons should be read in
conjunction with these reasons.
Parties involved
[24] Parties present and participating in the hearing were Mr Ben Turner, Mr
Peter Carne, the Public Trustee of Queensland, Ms Monika McKay, Senior
Trust Officer, BL and BS.
The issues and the legislation
[25] The relevant legislation that applies to this matter is section 59 of the Act.
This is reproduced below:
59 Compensation for failure to comply
(1) A guardian or administrator for an adult (an appointee) may be ordered
by the tribunal or a court to compensate the adult (or, if the adult has
died, the adult’s estate) for a loss caused by the appointee’s failure to
comply with this Act in the exercise of a power.
(2) Subsection (1) applies even if the appointee is convicted of an offence
in relation to the appointee’s failure.
(3) If the adult or appointee has died, the application for compensation
must be made to the tribunal or a court within 6 months after the death.
(4) If the adult and appointee have died, the application for compensation
must be made to the tribunal or a court within 6 months after the first
death.
(5) The tribunal or a court may extend the application time.
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(6) If security has been given under section 19 and the tribunal or a court
makes an order for compensation under this section, the tribunal or
court may also order that the security be applied in satisfaction of the
order for compensation.
(7) Compensation paid under a tribunal or court order must be taken into
account in assessing damages in a later civil proceeding in relation to
the appointee’s exercise of the power.
(8) In this section—
Court means any court.
[26] This means that, in order to award compensation, the Tribunal must find
BS has suffered a loss because the Public Trustee has failed to comply
with the Act when acting as administrator.
[27] The powers of an administrator are outlined in section 33 of the Act.
Subsection 2 provides that:
Unless the tribunal orders otherwise, an administrator is authorised to do, in
accordance with the terms of the administrator’s appointment, anything in
relation to a financial matter that the adult could have done if the adult had
capacity for the matter when the power is exercised.
[28] Section 34 requires an administrator to apply the general principles
outlined in schedule 1 of the Act.
[29] Schedule 2 of the Act outlines in part 1 the definition of financial matter and
gives a list of examples of what financial matters are. This includes a legal
matter relating to the adult’s financial or property matters.
[30] Section 35 of the Act provides that an administrator must act honestly and
with reasonable diligence to protect the adult’s interests.
[31] There is no suggestion that the Public Trustee has not acted honestly. The
matters raised by the applicant, in the Tribunal’s view, go to the issue of
whether reasonable diligence has been exercised.
[32] What is reasonable depends on the circumstances.
[33] The essential matters to examine as to whether the Public Trustee was
reasonably diligent appear to the Tribunal to be crystallised as follows:
Was the Public Trustee reasonably diligent in:
Managing BS’s AMP policy;
Instructing solicitors in respect of a property settlement with his ex
partner;
Protecting and dealing with BS’s personal property and chattels at
the former matrimonial home;
Protecting and maintaining the property at Walloon.
Initial submissions of the Public Trustee
[34] At the commencement of the hearing the Public Trustee provided a written
submission. This is summarized below:
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The original applicant Ben Turner failed to quantify his claim, making
it difficult for the Public Trustee to respond to claims against him.
Should Ben Turner seek leave to withdraw, the Public Trustee wants
the Tribunal to hear the application pursuant to section 59.
The Public Trustee’s analysis of the claim indicates a claim is being
made for:
o $28,000 paid by AMP to BS;
o Amount paid to BB;
o Payment of monies to Peter Sheehy;
o Ownership of chattels;
o The non-inclusion of specific clauses in separation agreement;
o Monies spend on the property clean up.
In respect of the $28,000 the Public Trustee outlined the various
steps taken including:
o On 31 October 2009 providing AMP with a copy of his
authority asking AMP to amend their records;
o AMP report yearly so the Public Trustee would not get a report
from them until 30 June 2007;
o The funds were withdrawn between Dec 06 and Feb 07 into a
joint bank account between BS and BB such account being
unknown to the Public Trustee;
o Since obtaining advice from AMP that they would not pay the
Public Trustee the funds withdrawn as BS had received the
benefits of these funds, the Official Solicitor has made a
demand on AMP and are awaiting final response.
In respect of the amounts paid to BB the Public Trustee submitted
that prior to the separation agreement issues considered included:
o Paternity issues;
o Identification of BB’s personal property;
o Obtaining an inventory of personal and matrimonial property;
o BB’s provision of both financial and non financial contribution;
o BB initially wishing 100% of the matrimonial pool, but settling
for 7% to be paid in 2 tranches one of $10,000 upon removing
herself and her 2 children from the property and $15,000 after
the sale of the property.
In regard to fees paid, the Public Trustee submitted that:
o Mr Sheehy was required to examine and advise on a range of
matters;
o His fees were based on the Family Court Scale and his
charges for outlays;
o The fees were reasonable.
With respect to the chattels the Public Trustee submitted:
o It is difficult to determine what each party brought to the
relationship;
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o The issue of the missing chattels could be referred to the
Queensland Police Service as stolen property;
o The Public Trustee has not been able to obtain receipts for
chattels of BS prior to entering the relationship with BB;
o No funds were expended to acquire matrimonial property from
the Public Trustee’s appointment until 15 October 2008, the
date of separation;
o An inventory of matrimonial property was attempted on 2 July
2009;
o The Public Trustee has been unable to ascertain what was
actually taken but has photographic evidence of what was left;
o Apart from a motor vehicle and jet ski, most of the chattels
realized little return;
o BS advised the Public Trustee officers in a 1:1 interview that
all that was missing was:
- 3 beds (presumably these include two beds for the
infant children)
- 3 televisions
- Various cupboards and cabinets
- 2 door refrigerator
- Microwave
- A lounge
- Dining Table.
With regard to the non inclusion of specific clauses in the separation
agreement the Public Trustee submitted:
o The division of property was determined “in globo”;
o The agreement is not a tenancy agreement and is not used to
determine the responsibilities of parties to clean up a dwelling;
o It is not mandatory for a separation agreement to include
division of chattels;
o Ms Kingswell who performed the work in Mr Sheehy’s office
has declared in a statutory declaration “There was no division
of chattels or collection of BS’s personal items was not raised
with me during the process of finalising the terms of the
agreement.”
In relation to the condition of the Walloon property the Public Trustee
had this to say:
o Little maintenance was undertaken on the property;
o The Public Trustee’s policy provides for annual assessments.
The 2006 report considers the house “was not in perfect
condition” and subsequent inspections noted its condition
consistent with wear and tear;
o The Public Trustee paid approximately $3,500 in repairs and
maintenance to prepare the property for sale;
o The 2009 property officer’s report recommended against
spending funds on renovations or major repairs apart from
plumbing, yard maintenance and rubbish removal.
[35] On all counts the Public Trustee submitted there were no grounds for
compensation against the Public Trustee.
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Evidence and submissions at the hearing
[36] BL advised the Tribunal that the Ben Turner letters are the views of the
family. He advised he was seeking compensation in respect of the assets
squandered when BB left 2 Harwoods Rd, Walloon.
Property at the house
[37] BL advised that all the items in the home were BS's. He stated there were
beds, fridges and microwaves. He referred also to household effects
missing including plates, bowls, cups, saucers, cutlery, 2 lounges,
3 television sets and 3 beds, as well as general furniture such as coffee
tables, lamps, CD racks, sound system and a washing machine.
[38] Additionally he told the Tribunal that an XR250 motorcycle worth between
$2,500 and $3,000 went missing as well as a lot of Sidchrome tools.
[39] BL was unable to put a figure on these items but referred to furnishing a
3 bedroom property as costing somewhere between $14,000 to $17,000.
He advised the Tribunal he knew this from his work as a real estate agent.
[40] BL advised the Tribunal that in 2003 when BS moved in, the house was set
up with new contents.
[41] In response to photographs provided by the Public Trustee, BL noted that
the images were photographs of items that BS had brought up from NSW
in a container. These he said, were broken items.
Damage to Walloon property
[42] BL advised he was also seeking compensation in respect of the damage to
the property and it would cost between $20,000 to $25,000 to get the
property back to standard because the breakages and abuse of the
property. BL considered the Public Trustee didn’t manage the asset
correctly. He advised the Tribunal that his mother voiced concerns to the
Public Trustee about what was happening at the house.
AMP Policy
[43] Ms Waldron advised the Tribunal that following the Public Trustee’s advice
to AMP of their appointment in July 2006, a letter dated 21 March 2007 to
AMP requested redemption of funds. It was not until 8 August 2007 that
the Public Trustee discovered there was no funds remaining. Ms Waldron
could find no subsequent correspondence from the Public Trustee until
March 2010 following up this loss. Mr Carne and Ms Waldron referred the
Tribunal to correspondence between the Public Trustee and AMP
regarding recovery. In June 2010 the AMP finalised their position that they
would not provide reimbursement and the Public Trustee responded in July
2010. The Official Solicitor was instructed in December 2010.
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[44] Mr Carne argued that there has yet to be a loss as the Public Trustee are
continuing to pursue AMP and a recent decision in the Court of Appeal
may assist in the recovery putting BS in a stronger position.
Vehicle and Jet ski
[45] In relation to the jet ski and a vehicle being moved to Zillmere, Ms McKay
advised the Tribunal that these items had been moved in preparation for
auction, prior to the Public Trustee accepting an offer from BL to buy. BL
stated he was not aware the items had been moved.
Utilities
[46] Mr McKay further advised the Tribunal that the Public Trustee had not paid
utilities for any period after which BS had left the premises. The last
payment made for utilities was for a period when BS was living in the
house for part of the period.
The separation agreement and chattels
[47] Ms Waldron advised the Tribunal that there were early discussions about
chattels in respect of the property settlement that became difficult when
receipts were unavailable and an inventory was unable to be completed.
[48] She further advised that Mr Sheehy’s advice was that it wasn’t mandatory
to include these items and it would have held up the settlement.
[49] Ms Waldron advised the Tribunal that the 7% settlement was in respect of
that percentage of identified property, being the house, the jet ski, and
monies in the bank but not chattels.
[50] Mr Carne suggested to the Tribunal that the assets involved here are only
minimal value.
[51] Ms Waldron advised the Tribunal that advice from Ms Kingswell was that
BB would be entitled to a lot more if the matter went to court.
[52] Mr Carne referred the Tribunal to clause 5.3 of the separation agreement
which provided:
“That apart from property and financial resources dealt with above, each party
retain without claim from the other the ownership in any other personal
property or financial resources under their custody, control or in their
possession.”
[53] Mr Carne noted that he understood BB had some items of chattels in her
possession, power and control but advised there wasn’t a determination as
to who owned what. He referred to BB not allowing the Public Trustee
access to the property to do an inventory.
[54] BL advised the Tribunal that prior to the agreement being finalised he had
a discussion with Wes Barry, a solicitor with the Public Trustee about his
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concern BB would take everything with her when she left. BL advised the
Tribunal that Mr Barry also had grave concerns about this.
[55] BL also advised that his mother expressed concerns to the Public Trustee
office in Ipswich about BB taking or destroying BS’s personal property.
[56] Ms Waldron advised the Tribunal that these warnings were passed on to
Ms Kingswell and that on 17 April 2009 Ms Kingswell met with Ben Turner
and BS.
The inventory
[57] Mr Turner advised the Tribunal he was present at the Walloon property
when the Public Trustee officer prepared the inventory. Also present was
BS and BB. He outlined the process as follows:
▪ BB allowed the 3 visitors entry to the home;
▪ The property inspector went through the 3 bedroom home and some
of the garage with BS identifying what were his items and what were
not;
▪ The inspector was able to do the 3 bedrooms, the living area and one
of the double garages;
▪ A dispute arose and BB would not allow entry to the second double
garage;
▪ The inspector wrote down the assets that BS said were his.
[58] The inventory of 2 July 2009 was subsequently provided to the Tribunal.
[59] Ms Waldron advised the Tribunal that Ms Kingswell was aware that the
partial inventory existed.
[60] Whilst the Public Trustee officers were unable to give a clear indication to
the Tribunal about the reason for conducting the inventory, Ben Turner
advised that the inspection was organised by the Public Trustee in
response to the repeated concerns raised by BS and his family concerning
the condition of the property and the loss of his assets.
[61] Mr Carne advised the Tribunal that if there is notice that a party may
abscond with assets there is nothing that can be done until the offence has
occurred and that no offence occurred during the period up to settlement.
[62] Mr Carne noted that the Public Trustee first became aware of missing
items on 11 December 2009 and indicated that the Public Trustee still had
courses available to him including referral to the Police or reopening the
matter in the Family Court.
[63] Ms Waldron provided the Tribunal with a list of items sold from the property
and photographs of some items left at the property.
[64] A number of items on the inventory were marked with a question mark.
These include a chainsaw, tool box, grinders, drills, mulcher, outdoor
setting, CDs and DVDs, an evaporative air cooler.
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[65] Ms Waldron advised these items could not be identified from the
photographs.
[66] She advised the Tribunal that there were other items missing including a
refrigerator, lounge suit and washing machine.
[67] She noted that there were some further items BS claimed were missing
identified in paragraph 3 of the initial submissions. These are listed at
paragraph 34 of these reasons.
Submissions
[68] Towards the conclusion of the hearing the Tribunal invited the parties to
make final oral submissions.
[69] Mr Carne submitted the matter should be adjourned for further oral
evidence to be produced in respect of the following:
The Public Trustee’s management and in particular more evidence
about what chattels were in the property;
How these were handled;
What were removed and their value;
More evidence about the property settlement and the avenues of
compensation available to BS if BB should not have taken items;
Steps taken by the Public Trustee to protect assets;
The Public Trustee’s duty; and
What options were available to the Public Trustee once he was put
on notice that BS’s personal property was at risk.
[70] A number of these matters had been canvassed during the hearing.
[71] One of the objects of the QCAT Act is to:
ensure proceedings are conducted in an informal way that minimises costs to
parties, and is as quick as is consistent with achieving justice.
[72] The conduct of hearings is governed by section 28 of the QCAT Act.
Section 28(3) outlines matters the Tribunal must take into account. These
are reproduced below:
(3) In conducting a proceeding, the tribunal—
(a) must observe the rules of natural justice; and
(b) is not bound by the rules of evidence, or any practices or
procedures applying to courts of record, other than to the extent the
tribunal adopts the rules, practices or procedures; and
(c) may inform itself in any way it considers appropriate; and
(d) must act with as little formality and technicality and with as much
speed as the requirements of this Act, an enabling Act or the rules
and a proper consideration of the matters before the tribunal permit;
and
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(e) must ensure, so far as is practicable, that all relevant material is
disclosed to the tribunal to enable it to decide the proceeding with all
the relevant facts.
[73] The Tribunal being mindful of the objects of the Act and section 28
considered:
The volume of relevant material before the Tribunal;
The length of time that has elapsed since the family first started
raising concerns about the Public Trustee;
The length of time the parties have had to prepare for this hearing;
The time spent at the hearing receiving evidence and submissions.
It determined that there should not be a further oral hearing and that any
further material should be put before the Tribunal by written submissions,
with each party having the further opportunity for final comment on each
other’s submissions. The parties agreed with this approach.
[74] The Public Trustee provided extensive submissions received by the
tribunal on 20 May 2011. No submissions were received from BL. A
registry officer telephoned BL who advised he had sent material to the
Tribunal prior to Easter. The Public Trustee received nothing also. BL was
verbally advised to resend these.
[75] When nothing arrived BL was contacted by letter, telephone message and
email about his submission. As at 5 July 2010 no material was received.
The Public Trustee’s final submissions
[76] The Public Trustee submits that the application for compensation be
dismissed as the applicant has failed to particularise the loss and bring any
evidence in support of the application. These submissions will be
expanded on later.
[77] In the first instance the Public Trustee claims that the Tribunal has failed to
afford procedural fairness. He submits that the Public Trustee attended the
hearing on 28 March 2011 in the belief that it was a directions hearing as
was identified in the application.
[78] The Public Trustee argues that “this put the Public Trustee at a distinct
disadvantage as it was not in a position to properly present its case and
bring evidence to refute the assertions made against it.”
[79] The Public Trustee submits that it cannot respond to a claim for
compensation where the applicant fails to identify and particularise the
loss. It is argued that a general complaint of the type contained in the
application is not sufficient.
[80] The Public Trustee asserts that an analysis of the hearing transcript
discloses no evidence or insufficient evidence to prove loss.
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[81] On the contrary the Public Trustee argues that the material provided to the
Tribunal and the separation agreement demonstrates that the Public
Trustee protected and maintained BS’s financial affairs.
[82] On the separation agreement the Public Trustee submitted:
▪ Peter Sheehy Solicitors were chosen because they represented the
best possible source of advice in this matter;
▪ Ms Kingswell of that firm had discussions with BS, his family and Ben
Turner about his property;
▪ At no time was Ms Kingswell provided with any information about
chattels or personal items belonging to BS and the division of
chattels or collection of personal items were not discussed with her;
▪ BB's continued residence at the Walloon property was consistent
with the advice provided to the Public Trustee by Ms Kingswell;
▪ The final agreement result in a settlement in favour of BS of 93% of
the asset pool while BB was entitled to 7%;
▪ An “in globo” approach was adopted with respect to the division of
the matrimonial pool.
Chattels at the Walloon property
[83] The Public Trustee submits the following in relation to the chattels:
▪ The applicant has failed to demonstrate what property has been lost;
▪ BS has itemized missing items to the Public Trustee;
▪ BS assisted BB to bring her personal belongings to the Walloon
property and it is unclear who owned what personal property;
▪ The Public Trustee purchased no items for the matrimonial home;
▪ Ms Retschlag from the Public Trustee’s Office telephoned BB on
30 March 2011 and BB stated she took what was hers and left BS’s
property;
▪ Photographs taken at the property on 9 December 2009 after BB
vacated show a variety of furniture and other items which were
secured at the property;
▪ These items were subsequently sold or stored until BS’s family took
custody of them;
▪ There is no case to answer with respect to missing property and the
Public Trustee has acted honestly and with reasonable diligence at
all material times in its job as administrator for BS.
The evidentiary test
[84] The Public Trustee submits the correct test to be applied to the evidence is
that outlined in Briginshaw v Briginshaw.
[85] The Public Trustee submits that the onus falls on the applicant to quantify
the loss and then to bring proof of the alleged action or omission that
caused the loss.
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[86] The Public Trustee referred the Tribunal to the case of WCD in the former
Guardianship and Administration Tribunal whereby the Tribunal undertook
a detailed examination of the loss claimed.
[87] In referring to HLB v Trust Company Ltd, the submission made by the
Public Trustee is that the Tribunal made findings against the administrator
on the basis that the prudent person rule as set out in the Trust Act 1973
had not been followed by the administrator.
[88] The Public Trustee submitted that a thorough examination of the evidence
in this matter clearly demonstrates the Public Trustee exercised its
judgment in a prudent and thoughtful manner and has acted in a manner
consistent with the Guardianship and Administration Act 2000.
The Tribunal’s view
[89] In his submissions the Public Trustee raised as a preliminary issue that the
approach of the Tribunal “fails to afford procedural fairness”. The basis for
this assertion seems to be that he attended the hearing on 28 March 2011
in the belief it was a directions hearing and the Tribunal “progressed to a
hearing of the substantive issues” and “this put the Public Trustee at a
distinct disadvantage as it was not in a position to properly present its case
and bring evidence to refute the assertions made against it.”
[90] The Tribunal completely rejects these assertions for the following nine
reasons:
a) The miscellaneous application form was used by Ben Turner for his
application. He ticked a box on the front applying for advice,
directions or recommendations. There is no specific form or box for
compensation applications. In the section why are you seeking this
order?, Ben Turner opens with the statement, “BS and his family are
seeking for the Tribunal to make a decision with respect to
appropriate compensation from the Public Trustee of Queensland for
BS”.
b) The notice of hearing dated 1 February 2011 clearly showed the
matter to be heard as GAA7264-10 application for compensation
order.
c) Tavis Watson, an officer of the Public Trustee inspected the file on
22 March 2011, in preparation for the hearing.
d) In what the Tribunal regards as unprecedented, the Public Trustee
himself, Peter Carne attended the hearing, suggesting that he
regarded this matter as extremely serious.
e) The Public Trustee also had in attendance a senior trust officer, Ms
M McKay and the acting manager of the Ipswich Office, Ms K
Retschlag
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f) Mr Carne, at the outset of the hearing advised that his position was
that the matter is before the Tribunal, he wanted the matter fully
agitated and wants the matter determined.
g) Ms Beck, a senior case officer at the Tribunal registry communicated
to Ms McKay via email on 27 September 2010 that the Tribunal had
received an application for an order for compensation against the
Public Trustee.
h) A 3 hour compulsory conference was held on 23 November 2011
regarding the application for compensation. This failed to resolve the
matter. Ms Retschlag and Ms McKay were in attendance.
i) The Public Trustee’s initial submissions prepared in advance of the
hearing and referred to in paragraphs 34 of these reasons contain an
analysis of the claim for compensation.
[91] The statement at paragraph 10 of the submission that the Public Trustee
attended the hearing on 28 March 2011 in the belief that it was a directions
hearing as was identified in the application lacks all credibility.
AMP Policy
[92] The Tribunal is satisfied that the Public Trustee was pursuing the AMP in
an appropriate manner in respect of the $28,000 that was taken from the
account.
[93] The Tribunal considers that, on the available evidence, the Public Trustee
has been tardy in its efforts in recovering the funds, given that there was no
apparent correspondence on this matter from 8 August 2007 until March
2010. The Tribunal is also concerned that the disappearance of the
$28,000 may not have been raised during the discussions between the
Public Trustee and Ms Kingswell. This is not referred to in any of the
Public Trustee’s submissions about the $28,000 or in Ms Kingswell’s
affidavit.
[94] The Tribunal does not find that the Public Trustee contributed towards the
events leading to the funds being withdrawn and used. The Public Trustee
properly advised AMP about its authority.
[95] The Tribunal accepts the Public Trustee’s evidence on this matter.
[96] Unfortunately the AMP over looked the notice of authority and released the
funds without appropriate authorisation into a joint bank account of BS and
BB. These funds were all withdrawn and apart from the $5,000 referred to
in a letter from Mr Berry, BB’s former lawyer, what happened to these
funds remains unknown.
[97] The Public Trustee cannot be held responsible. The Public Trustee when
first alerted in August 2007 to a withdrawal from the AMP, sought to
withdraw the balance of the funds. There is no case for compensation in
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respect to this aspect of the Public Trustee’s administration. Since the
hearing the Public Trustee have advised that AMP will make good the loss.
Vehicle and Jet ski
[98] The applicant suggested that the Public Trustee moved these items to its
Zillmere auction facility after the Public Trustee accepted an offer from him
to buy them, thus incurring additional costs to BS.
[99] The Tribunal is satisfied that this was not the case and that the 2 items
were relocated for both valuation and security reasons.
[100] The Tribunal finds there are no grounds for compensation as no loss was
suffered.
Utilities
[101] One of Ben Turner’s letters suggests that the Public Trustee paid for
utilities such as phone and power at the Walloon property at a time when
he was not there.
[102] Evidence from Ms McKay accepted by the Tribunal and unchallenged by
the applicant, is that the Public Trustee paid only for periods during which
BS was residing at the property.
Condition of property and damage done to the property
[103] The Tribunal accepts the Public Trustee’s submission that little
maintenance was done to the property. The Public Trustee property officer
did not recommend renovation or repairs other than essential matters.
[104] The Public Trustee has spent around $3,500 to prepare the property for
sale.
[105] The Tribunal has examined the various property inspection reports from
October 2006, October 2007 and September 2009.
[106] The 2006 and 2007 reports show most aspects of the property in good or
reasonable condition whereas the bedrooms and kitchen were described
as grubby in the 2009 report. The email sent to the Public Trustee’s Ms
Ghannoum by Ben Turner on 14 December 2009 also referred to property
damage noting:
“All carpets need replacing and the walls require painting. All the window
blinds are broken and need replacing, there is a broken window and a door
with a hole in it. The yards are a complete mess and have not been tendered
to in some time.”
[107] The Tribunal accepts the property was not looked after well. The Tribunal
notes that at various times some family and associates of BB occupied part
of the property with BB.
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[108] The Tribunal is satisfied that the property was left in a poor condition.
However, the Tribunal does not consider the Public Trustee neglected his
duties. The Public Trustee inspected the property annually and completed
reports and necessary important maintenance.
[109] The Public Trustee cannot be held responsible for how BB left the property.
[110] The Tribunal accepts the submission of the Public Trustee that BB's
settlement sum cannot be reduced to effect repairs.
The inventory, missing items and the separation agreement
[111] The Hon Tim Carmody SC has provided a memorandum of advice to the
Public Trustee as to whether there is any actionable fault arising out of the
terms and execution of the separation agreement or otherwise.
[112] The Tribunal wishes to comment on some elements of this advice.
[113] At paragraph 18 he notes that Ms Kingswell says an itemized list never
materialised despite repeated requests. The Tribunal can find no
statement in Ms Kingswell’s affidavit swearing to repeated requests. The
Tribunal has indicated earlier that it is the Public Trustee who should have
provided relevant documents in this regard to Ms Kingswell.
[114] At paragraph 27 Mr Carmody refers to serious disagreement about
whether concerns were raised by the adult or his family about the partner’s
trustworthiness prior to the execution of the agreement and the need for
precautionary measures. Mr Carmody does not elaborate regarding who
was in disagreement. There was unchallenged evidence at the Tribunal,
indeed supported by Public Trustee property officer, that BB was “going to
take the lot”.
[115] Mr Carmody argues that proof of wrong doing against BB is indispensable
to the success of the compensation claim. The Tribunal does not accept
this argument. There are missing items. No one knows who took them.
BB may have, but in the belief she could under the agreement. The Public
Trustee did not have BS’s non significant property listed in a schedule to
the agreement despite knowing his possessions could be at risk. Nor did
the Public Trustee seek to remove his property prior to the agreement
being reached. The Tribunal also notes that the photographs taken in
December 2009 are, in the main, not of usual household items.
[116] The Tribunal notes with interest Mr Carmody’s comment in relation to the
separation agreement that “what the family thought or expected to be in the
document is beside the point. It is what the adult understood and told Ms
Kingswell he wanted or didn’t care one way or the other about, that is
important.”
[117] BS is a man with an acquired brain injury whom this Tribunal found lacked
capacity for decision making for his personal and financial affairs. This
property agreement is not straightforward. BS’s view should be listened to,
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but it was for the Public Trustee to determine what was important in the
agreement.
[118] Finally, Mr Carmody opines that the only possible criticism that the Public
Trustee might be open to is signing the agreement without ensuring the
contents were adequately protected, if the Public Trustee knew or should
have known about the adult’s concern for their safety or that BB
represented an unacceptable risk.
[119] BL submitted at the hearing that the Public Trustee should pay for a refit of
a house with new chattels in an amount between $14,000 and $17,000.
The Tribunal does not agree with this. BL has not given the Tribunal a
comprehensive list of missing items or the value of these. This was not
supplied by Ben Turner either. It has been the process of the hearing that
has revealed the missing items.
[120] The Tribunal can only award compensation in respect of what has been
identified as having been lost.
[121] An inspector from the Public Trustee visited the Walloon property on 2 July
2009 to prepare an inventory of BS’s property. The Public Trustee was
unable to give a clear explanation as to why this was being conducted.
The Tribunal accepts the unchallenged evidence from Ben Turner that the
inspection was organised by the Public Trustee in response to the
repeated concerns of the family regarding the condition of the property and
the loss of his assets.
[122] The Tribunal accepts that the inventory was completed apart from items in
a double garage.
[123] From the evidence in respect of the inventory, and subsequent
photographs, the Tribunal has concluded that the following items are
missing:
Ohio forge bench grinder;
Solo chain saw;
Tool box;
Old drills;
Grinder;
R G Mulcher;
Outdoor setting Evaporative air cooler;
Clothes;
CDs and DVDs.
These items had not been identified by the Public Trustee as having been
sold.
[124] Other items that the Tribunal accepts were missing on Ms Waldron’s
evidence are:
▪ Lounge suite;
▪ Washing machine.
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While she mentioned a refrigerator, the photographs show one in the
garage.
[125] BS had previously advised the Public Trustee about the additional missing
items as indicated earlier. Some of these items are included in the above
lists.
[126] Evidence was also given that an XR250 bike belonging to BS went missing
from the property.
[127] The question for the Tribunal is whether BS should be paid compensation
for some or all of these items because of any failure on the part of the
Public Trustee.
[128] Mr Tipping, a property officer with the Public Trustee provided an affidavit
as part of the Public Trustee post hearing submissions. He attached
various photos which he says he took on 9 December 2009. He prepared
the inventory on 2 July 2009. He states he was in the house less than one
minute and observed a number of items from both inside and through a
window. The only qualification on his inventory report was that he could
not gain access to the 2 car garage. It does not make reference to the
short time in the house.
[129] He recalls BB saying repeatedly she was taking the chattels and was
taking the lot.
[130] On his visit of 9 December 2009 he states all the remaining chattels had
been removed to the garage. These he photographed. According to Lyal
Rogers, another property inspector, the house had been cleared of its
contents by 21 September 2009.
[131] The photographs used by Ms Waldron to identify missing property are
those taken by Mr Tipping.
[132] Taking all these events into account it is reasonable to assume that all
household furniture, crockery, cutlery and other effects were removed by
BB and nothing was left for BS.
[133] The Tribunal is satisfied that the separation agreement was favourable to
BS in respect of the percentages of the significant assets and liabilities.
[134] The Tribunal does have concerns about the agreement to the extent it is
silent on the issue of non significant property.
[135] These concerns arise because of the following:
▪ The Public Trustee was alerted to concerns of the family regarding
the prospect of BB taking BS’s property;
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▪ According to Ms Kingswell, the division of chattels or collection of
BS’s personal items was not raised with her by anyone. This
includes the Public Trustee;
▪ The Public Trustee had a partial inventory of BS’s property and
apparently did not forward it to Ms Kingswell for her consideration,
because she states in an affidavit that she was not provided with any
information about chattels or personal items belonging to BS;
▪ Ms Kingswell was aware of the inventory according to Ms Waldron
and obviously did not ask for it;
▪ Ms Kingswell was written to on 6 May 2009 by Ian Berry, then BB's
solicitor, advising her that:
“The $8,000 was received by BS from an investment, and the money
was banked into a joint Commonwealth Bank of Australia account at the
Ipswich Branch, from which BS withdrew $5,000,000 which was spent
on household goods. The Public Trustee had control of BS’s affairs at
that time.”
▪ The funds for household goods were spent, therefore, around
December 2006, contrary to the Public Trustee's assertions in his
initial submissions at paragraph 3(v) that no funds had been spent to
acquire matrimonial property in the period between the Public
Trustee’s appointment and 15 October 2008 when Walker Lawyers
advised of the separation. It is accepted that the Public Trustee was
not responsible for the spending of these funds;
▪ The agreement did not provide for a schedule of non significant
property owned by each party despite the Public Trustee knowing
this was an area of contention, especially when BB advised on a
number of occasions during the inventory visit that she was taking
everything;
▪ BB's solicitor suggested to Ms Kingswell that her client (presumably
BS) provide a list of items for collection. Ms Kingswell makes
reference to this in an affidavit on 10 February 2011 but takes it no
further. The Tribunal can only conclude no list was prepared and the
obvious question in the circumstances is “why not?”
▪ The separation agreement provides that property in their custody,
control or possession shall be retained by each party;
▪ The matters weighing on the Tribunal’s mind are:
o The Public Trustee knew about the potential for BS’s property
to go missing;
o It did not provide an inventory to Ms Kingswell despite having
one, albeit an incomplete one;
o It did not instruct Ms Kingswell about BS’s personal property;
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o The separation agreement made no provision for chattels as
personal property;
o It signed off on an agreement which did not protect his personal
property;
o The Public Trustee did not alert Ms Kingswell to potential
problems about personal property;
o Property went missing and no one knows who took it.
[136] The Public Trustee despite being alerted to the property missing in
December 2009 has taken no action to recover it.
[137] The Public Trustee argues the matter should be referred to the police or
the Family Court. It has not sought to do so in 18 months. This is
unacceptable and cannot be regarded as the actions of a diligent
administrator. These options do not appear to have been raised
previously.
[138] The Tribunal disagrees with the statement in a letter dated 7 April 2011
from Ms Waldron “that even if BB had made claims that she was taking all
of the household goods, the only recourse available to the Public Trustee
would have been to seek either interim orders or an injunction from the
Court".
[139] The Tribunal considers that arrangements could have been made to collect
BS’s property prior to the agreement being finalised as well as a schedule
being placed in the separation agreement in respect of other items of his
that were required to be left at the property for BB until she left eg furniture
to allow BB and the children to reside there.
[140] The Public Trustee as administrator is required to act as a prudent person
of business would. The Public Trustee has had decades of experience in
administering other people’s financial affairs.
[141] The Tribunal considers that in the circumstances of this case exercising
reasonable diligence and acting prudently would have necessitated action
being taken by the administrator to provide greater protection for BS’s
personal property. This could have been done in either of the ways
suggested above in paragraph 137.
[142] The Tribunal is of the view that the Public Trustee has not acted with
reasonable diligence and that a compensation order should be made in
respect of the below items identified throughout these reasons as
unaccounted for. These include some items from a list given at the outset
of the hearing by BL, items raised with the Public Trustee by BS, items
raised by Ben Turner with Louisa Ghannoum, and items identified by Ms
Waldron. The list is a composite list as some items were included by more
than one person. The list does not include items on the lists that are
identified in the photographs as still present. In this regard the Tribunal
notes the items listed in the Public Trustee’s final submissions as having
been photographed.
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[143] The list of unaccounted items for which compensation should be paid
follows:
▪ Lounge suite;
▪ Washing machine;
▪ XR 250 motor bike;
▪ Chainsaw;
▪ Evaporative air cooler;
▪ Tool box;
▪ Grinders;
▪ Drills;
▪ Mulcher;
▪ CDs and DVD’s;
▪ Crockery and cutlery;
▪ Kitchen tables and chairs;
▪ Microwave;
▪ CD stacker;
▪ 3 wardrobes;
▪ Dressing table;
▪ Exercise bike;
▪ Treadmill;
▪ Sound system;
▪ Coffee table;
▪ Lamps.
[144] The Tribunal has no information before it as to the age, brand and
condition of the property. The amount of compensation should reflect the
value of the items at December 2009.
[145] It is not possible for the Tribunal to quantify the amount at this stage and
will seek written submissions from the parties regarding the quantum that
should be paid. The Tribunal will determine the amount of compensation
on the basis of written submissions. The submissions should articulate the
basis on which the estimate is arrived at and any assumptions made.
[146] The Tribunal would be disappointed to find on a subsequent review of the
Public Trustee’s appointment that the Public Trustee had charged BS for
the considerable expense the Public Trustee has appeared to have gone to
in order to defend this matter.
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Official source: https://www.sclqld.org.au/caselaw/QCAT/2011/733