Drummond v Drummond

[1999] NSWSC 923

Supreme Court of NSW

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Interrogate

Catchwords

1. Succession Law
2. › Executors and administrators
3. › Duty of executor
4. › Duty to complete administration and distribute assets to beneficiaries
5. › Co-executor's refusal to execute share transfers
6. › Whether refusal justified
1. Succession Law
2. › Executors and administrators
3. › Executor's right of indemnity for costs
4. › Whether executor entitled to indemnity out of estate for costs of litigation
5. › Exception for impropriety or unreasonable conduct
6. › Exception where executor litigates for personal benefit rather than in capacity as executor
1. Corporations
2. › Directors and officers
3. › Duties of directors and secretary
4. › Duty to maintain corporate records
5. › Duty to clarify records as to status and ownership of shares
6. › Duty of inquiry where doubt arises
1. Practice and Procedure
2. › Costs
3. › Indemnity costs
4. › Principles governing departure from party and party basis
5. › Defence persisted in without sufficient grounds
6. › Vexatious conduct of litigation

Quick Take

An executor who defends proceedings on a basis which no reasonable person could say should be put forward forfeits the right of indemnity from the estate for costs. A director and secretary of a company who has signed annual returns recording shareholdings has a positive duty to make reasonable inquiries to clarify any doubt about the status and ownership of shares, and cannot simply sit back and demand that others produce evidence. A defence persisted in without sufficient grounds, after the defendant has been put on notice that it is misconceived and offered the opportunity to resolve the matter without costs penalty, may attract indemnity costs.