I am seeking an explanation of Normally, a beneficiaries personal…

Yes, as a debt to a joint venture comprisng the defaulting voluntary bankrupt trustee and
2 other beneficiaries.

Hi Leon,

Sorry to be confusing. The Judgment declares that the trustee owes the JVenture
$560000 and in turn the JV owes the other 2 beneficiaries $800000.

So, the estoppel argument runs bad luck for the JV the $560000 goes into the bankruptcy, the JV becomes insolvent and the other 2 benficiaries get nothing ..... unless an in rem constructive trust argument is legitimate to now continue.

Cheers, Julian

With no signed JV Agreement or Trust Deed a Court Hearing determined that a JV existed between the 3 partners and that the trustee partner owed fiduciary duties to the other 2
beneficiaries i.e. he was holding the assets for the 3 member JV.

Leon, thanks for your help and sorry for not giving you more information earlier and i would be happy to start a new JustAnswer should you deem necessary.

Prior to determining the JV status the Court took control of JV assets of around $1.8million resulting from a Court allowed sale of a JV property. The assets comprised $1m in cash placed into a Controlled Monies account and Freezing Orders placed upon another property the Court allowed to be purchased in the Trustee's & his wife's name for around $800000 completely from JV assets. The Court's supposition being that all
3 JV partners had as yet undetermined entitlements to the JV assets and Ordered an
accounting which took 5 years to obtain.

The Accounts Judgment declares that the trustee owes the JVenture $560000 (most of the new property) and in turn the JV owes the other 2 beneficiaries $800000 (to be pro rata) but the Trustee JV partner goes into voluntary bankruptcy just before the said judgment.

So, the Trustee partner & his Bankruptcy Trustee estoppel/res judicata argument runs bad luck for the JV the $560000 is expresssed as a debt and goes into the bankruptcy, the JV becomes insolvent and the other 2 benficiaries get nothing ..... in turn the Bankruptcy Trustee agrees with Mrs Trustee that she can keep her half of the new property & he will only take the JV Trustee's half of the Court frozen property.

We say that the accounting only determined the JV accounts and not the legal issues of ownership surrounding the frozen property in Mr & Mrs Trustee's names. That the property was purchased fully from JV assets lent by the Court so to speak hence held in trust for the JV or Alternatively an equitable charge or lien exists over the property ..... which brings me back to the seminal question, Does estoppel rule or can one mount an in rem judgment after the debt judgment ?

Are these remedies alternative or cumulative and does pursuing these remedies require an election ? AND seeking an explanation for the legal opinion "Normally, a beneficiaries personal remedy against a defaulting trustee are cumulative".

Look forward to your ideas and if you feel necessary reference to a counsel or retired judge if at all possible.

Thanks for your time, Cheers, Julian

Hi Leon,

Just wondering if you got my last Reply/Question ?

Hi Leon,

Thanks for doing further investigation, look forward to your further ideas.

Cheers, Julian

Yes, but he still claims there is no trust, the Judgment was for a debt, your bad luck.

Needless to say we don't accept his estoppel opinion, the legal warfare continues .....
but who is correct regardind our Questions ?

Cheers Leon