Marino Law acted for the successful plaintiff in a complex and protracted estate dispute, in which Justice Richmond delivered judgment in 𝘛𝘶𝘳𝘤𝘩 𝘷 𝘛𝘳𝘪𝘱𝘰𝘭𝘰𝘯𝘦 [2025] NSWSC 86.
The case centred on three key issues:
1️⃣ Failure to Rent the Property – Whether the defendant was liable for not leasing the Blacktown property before its sale.
2️⃣ Self-Dealing – Whether the sale of the estate’s principal asset, the Blacktown property, should be set aside due to the defendant’s breach of the self-dealing rule.
3️⃣ Revocation of Letters of Administration – Whether the defendant should be removed as administrator of the estate for breaching her fiduciary duties.
𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀
1️⃣ Failure to Rent: His Honour found that the defendant took reasonable steps and was not liable for failing to lease the Blacktown property.
2️⃣ Breach of Self-Dealing Rule: His Honour found that:
Trustees are prohibited from purchasing trust property under what is known as the self-dealing rule. Under this rule, ‘𝘵𝘩𝘦 𝘴𝘢𝘭𝘦 𝘣𝘺 𝘵𝘩𝘦 𝘵𝘳𝘶𝘴𝘵𝘦𝘦 𝘰𝘧 𝘵𝘩𝘦 𝘵𝘳𝘶𝘴𝘵 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘵𝘰 𝘩𝘪𝘮𝘴𝘦𝘭𝘧 𝘪𝘴 𝘷𝘰𝘪𝘥𝘢𝘣𝘭𝘦 𝘣𝘺 𝘢𝘯𝘺 𝘣𝘦𝘯𝘦𝘧𝘪𝘤𝘪𝘢𝘳𝘺 𝘦𝘹 𝘥𝘦𝘣𝘪𝘵𝘰 𝘫𝘶𝘴𝘵𝘪𝘵𝘪𝘢𝘦, 𝘩𝘰𝘸𝘦𝘷𝘦𝘳 𝘩𝘰𝘯𝘦𝘴𝘵 𝘢𝘯𝘥 𝘧𝘢𝘪𝘳 𝘵𝘩𝘦 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 “𝘦𝘷𝘦𝘯 𝘪𝘧 [𝘵𝘩𝘦 𝘴𝘢𝘭𝘦] 𝘪𝘴 𝘢𝘵 𝘢 𝘱𝘳𝘪𝘤𝘦 𝘩𝘪𝘨𝘩𝘦𝘳 𝘵𝘩𝘢𝘯 𝘵𝘩𝘢𝘵 𝘸𝘩𝘪𝘤𝘩 𝘤𝘰𝘶𝘭𝘥 𝘣𝘦 𝘰𝘣𝘵𝘢𝘪𝘯𝘦𝘥 𝘰𝘯 𝘵𝘩𝘦 𝘰𝘱𝘦𝘯 𝘮𝘢𝘳𝘬𝘦𝘵’
Although the defendant’s husband purchased the Blacktown property, it was found to be purchased on the defendant’s behalf, and she was aware that court approval could have been sought.
As a result, the transaction breached the self-dealing rule and was set aside on conditions.
3️⃣ Removal of the Administrator: His honour found that:
The defendant, based on her own admissions, breached her duty by intermingling the estates assets with her personal assets.
An administrator of a deceased estate has a duty to keep proper accounts and records of the income and expenses of the estate. There was an ongoing dispute over whether the defendant kept proper accounts of what was received and paid in relation to the estate, and this ongoing issue ought to be resolved by an independent administrator.
Her breach of the self-dealing rule further warranted removal.
𝗢𝘂𝘁𝗰𝗼𝗺𝗲
His Honour Justice Richmond ordered:
✅The removal of the defendant as administrator
✅The appointment of an independent administrator.
✅The setting aside of the Blacktown property sale, subject to conditions.
This decision underscores the strict application of the self-dealing rule and its importance in protecting beneficiaries of deceased estates and reinforces the importance of personal representatives understanding their fiduciary duties.
Marino Law is proud to have successfully represented the plaintiff in this matter, ensuring accountability and the proper administration of the estate.
Turch v Tripolone [2025] NSWSC 86 (21 February 2025)
Article by Nicholas Rossi
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