Dissolution of trusts in equity’s inherent jurisdiction

The Court of Appeal of New South Wales, in David & Ros Carr Holdings Pty Ltd v Ritossa [2025] NSWCA 108, recently clarified important aspects of trust administration. The Court refused to extend the ‘just and equitable’ ground for the winding up of partnerships or companies, as construed in Ebrahimi v Westbourne Galleries Ltd [1973] AC 360, to a general principle of equity that could similarly apply to trusts. Furthermore, the Court held that equity’s inherent jurisdiction does not include a general power to dissolve or ‘wind up’ a trust. This note analyses the Court’s reasoning and suggests that it is consistent with both history and principle. It also highlights the continued importance of the inherent jurisdiction over trust administration in circumstances where the trust structure is being increasingly used for modern commercial purposes.