Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 248

Record award in estate of John Hemmes

In February 2018, the son of a six-year affair between the late business mogul John Hemmes and Fiona Cameron was awarded $1.75 million [Estate Hemmes; Cameron v Mead [2018] NSWSC 85] from Mr John’s (as he was known) estate. This is a new record and, while the facts were unusual, it should be factored in when managing disputes in large estates.

The legal community was watching this case with interest for a few reasons. One was that it seemed that Mr John lead an affluent life style yet he had minimal assets and secondly, he had never acknowledged the son to be his own.

Justice Lindsay awarded the sum to Edward Cameron, the son. Mr Cameron was born in 1990, a product of an affair between his mother and the deceased. The deceased refused to acknowledge the son until Family Court orders were made in 1995 following a DNA test. Over 13 years, the deceased was compelled to make child support payments to the sum of $300,000. He made no other contribution to the upbringing of the plaintiff.

The plaintiff sought family provision relief under Chapter 3 of the Succession Act 2006 (NSW) in relation to the estate of the deceased.

Details of the estate

Mr John owned his large home in Vaucluse, ‘The Hermitage’, as joint tenants with his wife Merivale. The property was valued at $34 million. The legal implication of this is that such an asset did not go into his estate but passed on the moment of death to Merivale. Mr John died on 1 March 2015 and by a will dated 14 January 2015, he left $2 million to a person named as his ‘general manager administration’ and the balance of his estate to his widow and his two adult children. He left a gross estate valued at $363,964, with liabilities totalling $661,969. This left his estate with a negative value of $298,005.

The plaintiff amended his family provision order to contend that the ‘notional estate’ be the subject of the claim. Although the defendants to the proceedings opposed the claim, they agreed to set aside a fund of $4.1 million to be held in the controlled account of their solicitor. The plaintiff made a claim on the fund for his ‘proper maintenance, education and advancement in life’.

The defendants rejected the provision of the order on three grounds:

  1. The deceased made adequate provision for the plaintiff through the child support payments
  2. The deceased had no relationship with the plaintiff and only had ‘bare paternity’
  3. The plaintiff is an adult who can take care of himself.

They alternatively claimed that the provision should not be any more than $1 million. This ceiling on damages has now been smashed by this decision.

The decision on a ‘notional estate’

Justice Lindsay stated [at 56]:

“No provision was made for the plaintiff in the deceased’s will. Neither a person guided by wisdom and justice, nor a person guided by current community standards, could reasonably conclude that the deceased’s bare payment of child support payments, under compulsion of law, has left the plaintiff with adequate provision, etc, from the estate, or notional estate, of a father of the deceased’s affluence. The plaintiff is a young man, unaided by paternal support beyond child support payments, who certainly has the advantages of youth and potential, but accompanied by a lack of substantial wealth that commonly accompanies youth. The defendants’ primary case (that the plaintiff’s summons should be dismissed) must fail.”

The Court held that provision for Mr Cameron come out of the ‘notional estate’ of the deceased. This is a concept unique to NSW in Australia and applies where the deceased may have kept his estate small by leaving his assets in trusts set up while he was alive. ‘Notional estate’ means that attempts to keep estate assets ‘out of harm’s way’ may well not succeed.

The sum of $1.75 million was awarded (with some costs). We understand that this is a record award for such a case in NSW.

These types of issues can be addressed earlier with some good estate planning, as we are doing in other cases for our clients.

 

Donal Griffin is a Principal of Legacy Law, a legal firm specialising in protecting family assets. The firm is not licensed to give financial advice. This article does not consider any individual circumstances and Cuffelinks does not know the case well enough to make a judgement on the merits or otherwise of the case.

8 Comments
BB
April 16, 2018

"Why should the child be deprived of opportunity in life, due to his parent’s relationship at the time of his birth"

Billions of children are deprived of things everyday by virtue of life's circumstances?

"deprived of opportunity" here refers specifically to being deprived of wealth, not just any wealth but wealth well beyond that achieved by let alone simply bestowed up on the average citizen.

By the same logic, entitlement to wealth, power and by extension "opportunity" purely by virtue of bloodline (despite no other connection or relationship) is also a concept that many citizens of 2018 disagree with? The ethics are by no means open and shut here and nor does righteous outrage sway that fact.

As an individual, I would be the first to criticise illegitimate wealth and the exploration of a system apparently built for the many but often exploited by the few. Ethics is by no means a core personality trait of the populace, especially the most elite among us. However, If you fundamentally agree with the premise that legitimately acquired wealth (after fair taxes) should not be confiscated and redistributed by the state in life then it stands to reason the same applies in death. Lawyers deem this important not just for the next ambulance to chase, but for the precedence it sets and perhaps the unintended consequences it produces.

Dee
April 16, 2018

EDP ............ on the money (no pun intended)

Lisa
April 12, 2018

Agree, although to be fair, lawyers are just reflecting the ethics of their clients.

DONAL GRIFFIN
April 16, 2018

Thanks. It is interesting. We see both sides in broadly equal numbers. Some parents are disgusted that "an ungrateful" child is likely to get something (there is no log book as every case is different) and sometimes parents are blinded by a new relationship or do nothing in which case a formula applies which no-one likes (intestacy).

Rod
April 12, 2018

To David and Extremely Disappointed parent...

Well said both of you. Can only agree.
Thank-you.

Extremely disappointed parent
April 12, 2018

Mr John enjoyed a six year affair. The creation of a child from that relationship - and it seems there must have been some love from Mr John to the mother for it to last such a period of time - is an issue of responsibility and commitment on behalf of both that child's parents. That is what 2018 ethics should demand!
The mother raised the child with small, grudging child support. The child was entitled to live according to the advantages of his father, as all children such as Mr John's other two children did. This is my modern, 2017-18 view of modern ethical behaviour which I believe would be today's majority view. Why should the child be deprived of opportunity in life, due to his parent's relationship at the time of his birth, when his father had the means to provide him with the benefits of that parentage. Why should that child have been raised in such different circumstances to his half siblings who will have benefited from lifestyle, and schooling opportunities denied to him.
Regardless of the state of the law, or the facts of the case I find that a modern law firm advertising that they help wealthy, advantaged people is repugnant.
Mr John left a home worth $34 million and we all know the family has extensive business interests, and yet there is a feeling here that $1.7 million was TOO much to leave Mr Cameron. Really?
While this article may state what is true and available in the current practice of family law, I turn to Cuffelinks as a newsletter of integrity produced by people of integrity. I would have liked a disclaimer at least from the editor that this article did not represent their ethical framework, and that the success of Mr Cameron's claim should be applauded - or something like that!
How else does societal change happen if this sort of thing goes unchallenged? How very sad! (Managing Editor note: both this comment and the article have been edited, as we often do).

Donal Griffin
April 16, 2018

Dear Extremely disappointed parent. Everyone is entitled to legal representation in NSW. We act for executors who want to resist claims by other parties and we also act for people who want to challenge estates. The important principle of freedom of attestation is subject to the right of "eligible people" as defined by the Succession Act 2006 (NSW) to bring a claim for provision out of an estate. Our firm does not make the rules. We are not offering any comment on the ethics of these cases. We do say, however, that they are often very hard cases.

David
April 12, 2018

Mmm ... just shows the rich stay rich (or try to) by using every inch of black letter law. Where is the sense of moral obligation?

 

Leave a Comment:

RELATED ARTICLES

The Thorny Birds of McCullough's estate

The nuts and bolts of testamentary trusts

The nuts and bolts of family trusts

banner

Most viewed in recent weeks

Howard Marks: the investing game has changed

The famed investor says the rapid switch from globalisation to trade wars is the biggest upheaval in the investing environment since World War Two. And a new world requires a different investment approach.

Welcome to Firstlinks Edition 605 with weekend update

Trump's tariffs and China's retaliatory strike have sent the Nasdaq into a bear market with the S&P 500 not far behind. What are the implications for the economy and markets, and what should investors do now? 

  • 3 April 2025

Pros and cons of Labor's home batteries scheme

Labor has announced a $2.3 billion Cheaper Home Batteries Program, aimed at slashing the cost of home batteries. The goal is to turbocharge battery uptake, though practical difficulties may prevent that happening.

Designing a life, with money to spare

Are you living your life by default or by design? It strikes me that many people are doing the former and living according to others’ expectations of them, leading to poor choices including with their finances.

World's largest asset manager wants to revolutionise your portfolio

Larry Fink is one of the smartest people in the finance industry. In his latest shareholder letter, the Blackrock CEO outlines his quest to become the biggest player in private assets and upend investor portfolios.

4 ways to take advantage of the market turmoil

Every crisis throws up opportunities. Here are ideas to capitalise on this one, including ‘overbalancing’ your portfolio in stocks, buying heavily discounted LICs, and cherry picking bombed out sectors like oil and gas.

Latest Updates

Investment strategies

An enlightened dividend path

While many chase high yields, true investment power lies in companies that steadily grow dividends. This strategy, rooted in patience and discipline, quietly compounds wealth and anchors investors through market turbulence.

Investment strategies

Don't let Trump derail your wealth creation plans

If you want to build wealth over the long-term, trying to guess the stock market's next move is generally a bad idea. In a month where this might be more tempting than ever, here is what you should focus on instead.

Economics

Pros and cons of Labor's home batteries scheme

Labor has announced a $2.3 billion Cheaper Home Batteries Program, aimed at slashing the cost of home batteries. The goal is to turbocharge battery uptake, though practical difficulties may prevent that happening.

Investment strategies

Will China's EV boom end in tears?

China's EV dominance is reshaping global auto markets - but with soaring tariffs, overcapacity, and rising scrutiny, the industry’s meteoric rise may face a turbulent road ahead. Can China maintain its lead - or will it stall?

Investment strategies

REITs: a haven in a Trumpian world?

Equity markets have been lashed by Trump's tariff policies, yet REITs have outperformed. Not only are they largely unaffected by tariffs, but they offer a unique combination of growth, sound fundamentals, and value.

Shares

Why Europe is back on the global investor map

European equities are surging ahead of the U.S this year, driven by strong earnings, undervaluation, and fiscal stimulus. With quality founder-led firms and a strengthening Euro, Europe may be the next global investment hotspot.

Chalmers' disingenuous budget claims

The Treasurer often touts a $207 billion improvement in Australia's financial position. A deeper look at the numbers reveals something less impressive, caused far more by commodity price surprises than policy.

Fixed interest

Duration: Friend or foe in a defensive allocation?

Duration is back. After years in the doghouse, shifting markets and higher yields are restoring its role as a reliable diversifier and income source - offering defensive strength in today’s uncertain environment.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.