Club Esplanade Ltd v Acott & Ors [2003] QSC 12

SUPREME COURT OF QUEENSLAND CITATION: Club Esplanade Limited v Acott & Ors [2003] QSC 012 PARTIES: CLUB ESPLANADE LIMITED (ACN 010 470 354) (applicant) v GEORGE ACOTT and PATRICIA ANNE ACOTT ALAN W J WILSON NOMINEES PTY LTD ACN 005 897 512 CLINTON JAY ALCOCK OSCAR ARFI JOHN LINDSAY ARGENT and SHARON ANN ARGENT JOHN ROSS BALLINGER and MARGARET ANN BALLINGER PEGGY BARRAND JOHN WAYNE BELL KAYE MARIE BETTERIDGE RICHARD WILLIAM BETTERIDGE (aka RICHARD WILLIAM MURPHY) STAN JOHN BILAS and IRENA RENATA BILAS BEVERLEY ANN BIGGERS GRAEME NEIL BLACKWELL and SHERYL MARY BLACKWELL STEVEN MICHAEL BLAIR and PAULA ANNE McKENZIE BLAIR CHRISTINE RAE BLOOM and STEPHEN MARK WILLIAMS RICHARD and CAROL ANN BLOOM BOB QUADARA PTY LTD ACN 006 072 519 JOHN FREDERICK BOHNER and OLIVINE NADEAU BOHNER ROSE-FRANCE BONDARENKO MORVA GWENDOLINE BOX PETER JAMES BRANDIE ROBERT ELLIOT BRENNAN and SARAH HAYES BRENNAN PETER MICHAEL JOHN BROWN and HELEN JEAN BROWN TREVOR GRAHAM BROWNE and JULIE MAY BROWNE JOHN BERNARD BURGESS and SUSAN GAYE BURGESS NORMAL CARL and JUDITH ANN BURT PETER McCULLOCH and JOAN BEVERLY BURT SHIRLEY DIANE CAMERON FRANK CAMINITI and BEVERLY CAMINITI LEIGH FRANCIS and CAROLE JEAN CAMPBELL -- 1 of 10 -- 2 LUCY CARPENTER ANNETTE JOY CHRISTIE NORMAN CLARE and WINIFRED CLARE PHILIP GEORGE CLARK and GLORIA MAY CLARK JOANNA LOUISE CLARKE LOUISE JOAN CLARKE CLASSIC PROPERTY MANAGEMENT PTY LIMITED ACN 001 566 221 MYRLENE NANCY COLES JEFFREY BRUCE CONNOR and MILLS K MARIA TERESA CONTRERAS and RAUL CONTRERAS JOHN DAVID CRAWLEY and MARILYN JOY CRAWLEY WENDY JOAN CRITCHLEY ANTHONYCROWDER PURDENCE FRANCES CROWE CHRISTIE DA COSTA and ANGELA DA COSTA ANNIE PHILOMENA DALEY GRACE DECARLI ROHNAN WARWICK DENNIS DIAL AN EXCHANGE PTY LTD ACN 078 812 469 KEITH MAXWELL DIGHT and MARY BLAIR DIGHT WALTER RONALD DON and MARY ALICE DON CARMEL THERESE DOWNES RAYMOND GEORGE DUNSTAN and MARY BARBARA DUNSTAN SHERY DURO and DIANE DURO BETTY FLORENCE EARNEY VIVIENNE SHIRLEY EBERHARD JOHN ROBERT EELS ALLAN KENNETH EKERT IMELDA MARY ENNIS ERIC NEIL EVANS DALE JOHN FARNHAM GREGORY KAVANAGH FARRELL and MARSHALL WG BRIAN KEITH FINDLATER and JENNIFER AGNES FINDLATER BERNARD FISCHER and EVELYN FISCHER DANIEL WILLIAM FITZGERALD NEIL JEFFREY FITZMAURICE and LISA CATHERINE FITZMAURICE BARRY GEORGE FLETCHER and MAREE FLETCHER BARRY GEORGE and MARIE FLETCHER FLEXI-POINT HOLIDAYS LTD ACN 059 189 150 SUSAN FORSTER and JOANNE FORSTER JONATHAN JAMES FRASER AND ANN FRASER SIMONE FRIEDRICH DOMENICO GAETANO and CATHY GAETANO -- 2 of 10 -- 3 MILOJKO GAJIC and MILEVA GAJIC RUDOLPH GAJSKI and LYNDA GAJSKI LEE GALLO VICKIE GALLO CAROLYN GARRETT TONY GEORGEALLIS LINDA GILFILLAN JOY MAVIS GRAHAM and FAY JACKSON LESLIE GEORGE GRAY and DOROTHY JOYCE GRAY WILLIAM JAMES GREALY and BAMBI RAE GREALY EDWARD HARCOURT GRIFFETT and HELEN ANNE GRIFFETT ROBERT WILLIAM GRIMES and SYLVIA GLADYS GRIMES PETER DAVID GROSSER and KAYLENE ANNE GROSSER PETER GROSSMAN and CHERYL GALE GROSSMAN TIONG HUA and SHIK JUI YAO HA JANICE MARGARET HAMILTON and MM CATCHPOLE JAMES COLIN HANDLEY HENRY PANAYOTTI HANNA and ALICE HANNA and MARYLENE HANNA ANTHONY RICHARD HARRISON DENIS PETER HEASLY KLAUS HECTOR GRAEME HENDERSON and GLENDA HENDERSON NEVEILLE DALLAS HIGGINS and NORAH HIGGINS NEVILLE DALLAS HIGGINS and NORA HIGGINS CHRISTOPHER DOUGLAS HILEY and SENGA GREER HILEY ALAN JAMES HOOD and JUDITH JANET HOOD ANDREW MARK HOXEY and MARGARET ALLIS AESCHLIMANN GRAHAM BENJAMIN HUCKSTADT and LYNETTE ANNE HUCKSTADT FAY JACKSON and JOY MAVIS GRAHAM FERGUS BUTLER JACKSON JAP MANUFACTURING PTY LTD ACN 001 361 128 CAROLYNE JIGGINS PETER NOEL JOHNSON and JOYCE JOHNSON JOHN ALLAN JONES and BARBARA EMILY JONES FRANCIS JOSEPH JOYCE and BEVERLEY JOYCE JOHN JAMES JOYCE and ARLENE PHYLIS JOYCE RICHARD KAHN WAYNE WAINA KAHU and MEREHAUTANGI KAHU PAULINE LORRAINE KAY JOSEPH EDWIN KEE and BERYL MAY KEE -- 3 of 10 -- 4 WALTER PATRICK KEENAN and PATRICIA JEANNE KENNAN WILLIAM KEMPEES and MARGARET ETHEL KEMPEES SIMON MARC KNIGHT MAURE KRAMER and HELEN KRAMER JOZEF LEONARD KULKENS and PATRICIA LOUISE KULKENS BRIAN ROSS LAMB CHRIS LAMBIS and FRANCESCA LAMBIS KEVIN GERARD LANE NERINGA JULIJA LANE BERNARD JOHN LATHAM and DIANE LATHAM DEBORAH MARGARET LE MAISTRE and PAUL GERARD LE MAISTRE YIK LEE and ALICE LEE ALEXANDER LENKO and EVA LENKO LESLEY NEUPARTH NOMINEES PTY LTD ACN 005 370 598 GIANG LEVAN and CATHY ANNE LEVAN LESLIE WILLIAM LEWIS and THELMA MAY LEWIS WILMA LIM HUI SIU LING LEONG ENG LING LEY NA LING STEVEN JOHN LOCK and MARGARET JOAN LOCK JOSEPH LOMBARDO and PATRICIA LOMBARDO GEORGE WALTER LONG BERNICE LEILA LYNCH NOEL RODERICK LYNCH NOEL RODERICK LYNCH and BERNICE LEILA LYNCH NR & BL LYNCH NOMINEES PROPRIETARY LIMITED ACN 005 429 783 MICHAEL JON MABBOTT and SANDRA ELAINE MABBOTT IAN KEITH MACDONALD and VIVIANNE ALICE MACDONALD MARGARET FLORENCE MAGEE FRANK MARIOLI and STELLA STAMATAKIS MARIA MATTIACCIO ALAN HARRIS MAUGER VOLA OLIVE MAUGER ANDREW DAVID McCUTCHEN and CYNTHIA MARGARET McCUTCHEN MARGARET MARY McDONALD JOHN McKENNA and JULIAN STAFFORD McKENNA ANDREW MCKIE BRYAN KENNETH McPHERSON ALAN WILLIAM MEE and ELROY SUZANNE MEE -- 4 of 10 -- 5 JOHN RICHARD MEE and JOAN MARY MEE AMELIE ANTONIA MENHEERE SAUL MIDLER LAURELMINTO MILLER SAMMY MIZZI CARMEL MARGARET MOORE PETER KENNETH MORRIS and PATRICIA KATHLEEN MORRIS ROGER ALBERT MORRIS and GABRIELLE MORRIS DEREK PAUL MULLER ANDREW MUSGROVE NOEL RODNEY NEIL and MARGARET MARY NEIL DANIELLE MARIE NELSON MICHAEL MILAN NESS RITA BERYL NORTHORPE KATHRYN EVELYN NUNN FLORENCE JOAN OAKES DONNA MAREE OTTO OWEN MOORE OTTO and ELAINE EDNA MARY OTTO HENRY OWCHAREK YOLANDA HOPE PALMA JENETTE GRACE PARKER and PM SMITH LINDA CHRISTINE PEARCE MAURICE PEAT and CHERYL ANN PEAT VIRGIL PENDER ALLAN McINTYRE PENMAN and JANICE ELIZABETH PENMAN FRANCINE ELIZABETH PERKINS ANNETTE MICHELLE PETTERSEN NINO PETTORINO and ELANOR PETTORINO BARRY GRAHAM PHILLIPS and PATRICIA ANNE PHILLIPS BARRY GRAHAM PHILLIPS and PATRICIAN ANNE PHILLIPS MICHAEL GEORGE PICHLER EILEEN PIGDON KEVIN WILLIAM PITTS and JUDITH PITTS GRAHAM MITCHELL POLKINGHORNE and JUDITH POLKINGHORNE TRICIA MARGARET PURCEL JAMES WEIR QUAITE and ELSIE MAY QUAITE QUINN GROUP (GOLD COAST) PTY LTD ACN 010 146 817 QUINN GROUP (SUNCOAST) PTY LTD ACN 009 926 238 ALAN JAMES RICHARDS and HELEN CHRISTINE RICHARDS DONALD GRAHAME RICHARDS GERALD REGINAL RICKARD and DENISE JEAN RICKARD -- 5 of 10 -- 6 RONALD ALFRED ROBERTS and ANDREW HILTON ROBERTS and DIANE MARGARET ROBERTS ROBOROUGH PTY LTD ACN 006 214 562 STEPHEN ROCHE and LYNNE ROCHE ELIZABETH ROSS JEAN NOEL ROUSSETY and JENNIE MARIE ROUSSETY NEIL RICHARD ROWLEY BRIAN DAVID RUSSELL and RAELEEN RITA RUSSELL JAMIE ANDRE SCHIAVONS FREDERICK JOHN SCOTT-RAYNSFORD THOMAS WILHELM SENDIN and ROSEMARY SENDIN WILLIAM JOSEPH SHARP and JOAN DAPHNE MARY SHARP HAROLD JAMES SHAW and JEAN MARY SHAW ROMANAS SILINIS and BARBARA HELEN SILINIS PAUL JASON SIMMS and SHANE ALEXANDER HERBERT JENNIFER LUCY SJODIN GREGORY JOHN SMITH MARGARET MADELINE SMITH PETER GORDON SMITH REBECCA SMITH VICTOR SMITH and KERRY SMITH MICHAEL JOHN SMITHURST JOHN SPINELLO PHILLIP MAURICE SPLITTER LENOARD WILLIAM STANFORD and EVELYN STANFORD PAUL ANTHONY STAPLETON CHARLES JOHN STARR and KATHLEEN DOROTHY STARR CHARLES TREVOR STARR JEFFREY CHARLES STARR MATTHEW JOSEPH STARR SIGURDS ANDRIS STOLCS and TONI BERNADETTE STOLCS ANITA THEODORA SUSTRUNCK DIANA GAY KILLEEN SWEETMAN and MARY ELIZABETH SWEETMAN LOU TAMBURRO and FAYE TAMBURRO EVELYN TAN TANNER JAMES ALBERT TANNER DONALD ANGUS TAYLOR LOIS ANNE TAYLOR EDWARD ANDREW THOMAS and MARGARET DAWN THOMAS SCOTT ROBERT THOMAS JUDITH ANNE THOMPSON -- 6 of 10 -- 7 LESLIE MAXWELL THOMPSON and CHERYL MAREE THOMPSON COLIN LESLIE TINKER and VALERIE DAWN TINKER RAMON BRUCE TOMPKINS DAVID TONKINSON and VICKI JOY TONKINSON BRIAN JAMES TOOMEY and BERYL TOOMEY TOTAL PERSON PTY LTD ACN 005 963 904 GRAEME WALTER TOWNSEND and SUSANNE MARGARET TOWNSEND JULIE FAYE TULLOCH ANNIKA THERESE TURPIE DAVID RICHARD TYRER WILLIAM MICHAEL VAUX ANNE CHRISTINE VIDIS AMEDEO BASIL VIRGONA and TERRY ANNE VIRGONA TREVOR DOUGLAS VOSS and MARINA VOSS IVAN VUILLEMAIN MICHAEL VUKSIC and LORIE VUKSIC RUTH LYNETTE WALKER SUSAN WARD ERIC WATKINS and SANDRA WATKINS MARK LYNSLEY WATSON SUE VANESSA WATTS GRAHAM JOSEPH WEISS WILLIAM LEWIS WESTON and JOAN WINIFRED WESTON LYNDSAE CLAIR WHEEN GRAHAM ALAN WHITE CHRISTOPHER EDWARD WILLIAMS DOROTHY JOAN WILLIAMS TIMOTHY VAUGHAN WILLIAMS GORDON RANKIN WILSON and BETTY ANNE WILSON KEITH SIDNEY WOOD and ELSA PAULINE WOOD ELEANOR HARLE YOUNG and STUART LAMB YOUNG STEPHEN JOHN YOUNG MAWN YOUNG JUDITH ANN ZONNEVELD (respondents) FILE NO/S: S10760 of 2002 DIVISION: Trial Division PROCEEDING: Application ORIGINATING COURT: Supreme Court Brisbane DELIVERED ON: 04 February 2003 -- 7 of 10 -- 8 DELIVERED AT: Brisbane HEARING DATE: 06 January 2003 JUDGE: Mackenzie J ORDER: 1. That pursuant to s 38 of the Property Law Act 1974 Bradley Vincent Hellen and Ann Fordyce be appointed trustees of the land described as Lots 1 to 10 on BUP 1463, situated at 116 The Esplanade, Surfers Paradise in the State of Queensland (“the land”); 2. That pursuant to s 38 of the Property Law Act 1974 Bradley Vincent Hellen and Ann Fordyce be appointed trustees of the registered leases Nos 601142188, 601394906, 601401140, 601147589, 601085123, 601355575, 601440303, 601147912, 601277248 and 601142186 over the land; 3. That the application insofar as it relates to paragraph 4 of the originating application filed 26 November 2002 be adjourned to a date to be fixed; 4. That the costs of and incidental to the application insofar as they relate to paragraphs 1 and 2 of the originating application filed on 26 November 2002 be paid by the applicant to the respondent, Wendy Critchley, to be assessed. Otherwise costs are reserved. CATCHWORDS: EQUITY-TRUSTS AND TRUSTEES – TRUSTEES - THEIR APPOINTMENT, DISMISSAL, ESTATE, ETC - APPOINTMENT OF NEW TRUSTEES - where question of who should be appointed as trustees for sale- whether trustees for sale should be independent of the applicant EQUITY - TRUSTS AND TRUSTEES-TRUSTS FOR AND POWERS OF SALE - TERMS, CONDITIONS AND MODE OF SALE - where question of the basis of distribution of any proceeds of sale Property Law Act 1975 (Qld), s 38 COUNSEL: N Thompson for the applicant D J Dowd for the respondent SOLICITORS: Gustafson’s Solicitors and Attorneys for the applicant Dibbs Barker Gosling Lawyers for the respondent [1] MACKENZIE J: This is an application for appointment of trustees for sale and associated orders under s 38 of the Property Law Act 1974. The applicant is a company limited by guarantee. It operates as a time share resort. The respondents’ entitlement to participate in the time share scheme is derived from membership of the company, which is the registered proprietor of each lot within the building. Each respondent has the benefit of a registered lease expiring on 31 December 2082 and has an entitlement in respect of one or more time share weeks. -- 8 of 10 -- 9 [2] One respondent, Mrs Critchley, who does not oppose the overall purpose of the application but opposes aspects of the orders sought in the originating application, owns three weeks of “fixed time” time share for the last two weeks in December and the first week in January each year in two units. Her opposition relates to the identity of the proposed trustees and the method of distribution of the net sale proceeds. The issue of selling the building had been agitated for a number of years. It is not necessary to recount the history of the matter beyond saying that at a special general meeting in August 2001 a minimum sale price was fixed. The property was auctioned on 2 April 2002 and a contract, subject to conditions, for more than the minimum price was entered into. [3] The originating application sought to have two solicitors, Mr Gustafson, the sole partner of his firm, and Mr Campbell, an associate in Mr Gustafson’s firm, appointed as trustees for sale. The firm acts for the applicant but their appointment as trustees is said to be justified on the basis that, in the particular circumstances of the case, special knowledge of the applicant’s affairs is necessary. Mrs Critchley has proposed two accountants to fill the role of trustees. They are independent of her. On the material before me there is no reason why statutory trustees should not be appointed. The only issue is who should be appointed. [4] The second issue concerns the basis of distribution of the proceeds of sale in the event that the contract proceeds. The applicant has submitted that the distribution should reflect each respondent’s entitlement under the rights that are held. The result would be that each person holding an entitlement would receive an equal share of the proceeds for each entitlement. There is a calculation annexed to Mrs Critchley’s submissions which appears to be based upon the notion that some rights, and in particular hers, are more valuable than others because they cover a more profitable time of the year and that this should be reflected in the method of distribution. There is no expert opinion as to whether this is a valid methodology or not. Subsequent to the hearing I was provided with correspondence suggesting that attempting to value interests on that basis would be complex and expensive, with the suggestion, which is probably a ballpark figure, that it could cost about $50,000. As the evidence provides an unsatisfactory basis as it stands for determining this issue – and there is no guarantee that Mrs Critchley’s view is correct – it is not appropriate to determine this issue at this point. Accordingly the application, insofar as it relates to the basis of distribution of the proceeds of sale, if the sale occurs, should be adjourned to a date to be fixed. [5] The possibility that there is likely to be further litigation in the matter provides a pointer to how the remaining issue of who should be the trustees should be resolved. There is a conflict of approaches as to the distribution of proceeds of sale. If that dispute is not resolved by other means, including a realistic assessment of commercial realities, before proceedings actually become necessary, solicitors who have been acting for the applicant who has put forward an argument that proceeds should be divided equally between all interest holders would, it seems to me, face difficulties in carrying out the role of trustees applying to the court for a determination of the issue unless they had relinquished the role of solicitors for the applicant. If they did that, one of the suggested benefits of having them as trustees, that they are familiar with the affairs of the company, would be lost. Accordingly, the appropriate order is that it is more appropriate to have independent trustees. Bradley Vincent Hellen and Ann Fordyce, both partners in Calabro Partners, -- 9 of 10 -- 10 Chartered Accountants, have consented to perform the duties of trustees and there is no reason why they are not appropriate appointees. [6] I make the following orders: 1. That pursuant to s 38 of the Property Law Act 1974 Bradley Vincent Hellen and Ann Fordyce be appointed trustees of the land described as Lots 1 to 10 on BUP 1463, situated at 116 The Esplanade, Surfers Paradise in the State of Queensland (“the land”); 2. That pursuant to s 38 of the Property Law Act 1974 Bradley Vincent Hellen and Ann Fordyce be appointed trustees of the registered leases Nos 601142188, 601394906, 601401140, 601147589, 601085123, 601355575, 601440303, 601147912, 601277248 and 601142186 over the land; 3. That the application insofar as it relates to paragraph 4 of the originating application filed 26 November 2002 be adjourned to a date to be fixed; 4. That the costs of and incidental to the application insofar as they relate to paragraphs 1 and 2 of the originating application filed on 26 November 2002 be paid by the applicant to the respondent, Wendy Critchley, to be assessed. Otherwise costs are reserved. -- 10 of 10 --