TRIPLE A TRUSTEES LIMITED [2020] NZHC 1314

TRIPLE A TRUSTEES LIMITED [2020] NZHC 1314

The Court exercised its inherent equitable jurisdiction (the Benjamin principle) to grant directions authorising Triple A Trustees Ltd to transfer the Trust's assets to FFP Trustee (NZ) 2 Ltd without personal liability, concluding that the applicant was on notice of circumstances that could give rise to third-party...

Source-derived case information.

Citation
[2020] NZHC 1314
Parties
Applicant (sole Trustee): Triple A Trustees Limited; Represented Beneficiaries: Represented Beneficiaries; Proposed Replacement Trustee: FFP Trustee (NZ) 2 Ltd
Court
High Court
Jurisdiction
New Zealand
Judgment Date
13 June 2019
Procedural Posture
Originating Application Under Part 19 High Court Rules and Application Under Trustee Act 1956 for Directions / Judgment on Application (directions Granted)
Outcome
Application granted: court authorised replacement of trustee and transfer of trust assets to FFP Trustee (NZ) 2 Ltd without personal liability for the applicant and ordered recovery of the applicant's reasonable costs from the trust funds.
Legal Topics
Benjamin Order, Trustee Removal and Transfer, Section 66 Trustee Act 1956 (blessing Order), Court Directions to Trustees, Potential Third Party/proprietary Claims, Inherent Supervisory Jurisdiction
Trusts Equity Civil Procedure Criminal Asset Recovery Benjamin Order Trustee Removal and Transfer Section 66 Trustee Act 1956 (blessing Order) Court Directions to Trustees +2 more

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Parties

Triple A Trustees Limited

Applicant (sole Trustee)

Represented Beneficiaries

Represented Beneficiaries

FFP Trustee (NZ) 2 Ltd

Proposed Replacement Trustee

Procedural Posture

Originating Application Under Part 19 High Court Rules and Application Under Trustee Act 1956 for Directions / Judgment on Application (directions Granted)

Legal Issues

  1. 1 Whether the Court should authorise the trustee to transfer all trust assets to a newly appointed trustee without personal liability where there are circumstances that could give rise to third-party proprietary claims
  2. 2 Whether a Benjamin order is appropriate to protect the trustee in transferring assets when it is practically impossible to prove or disprove potential proprietary claims by overseas regulators
  3. 3 Whether a statutory approval under s 66 Trustee Act 1956 (a 'blessing order') is required or appropriate in addition to an order under the Court's inherent jurisdiction

Ratio Decidendi

The Court exercised its inherent equitable jurisdiction (the Benjamin principle) to grant directions authorising Triple A Trustees Ltd to transfer the Trust's assets to FFP Trustee (NZ) 2 Ltd without personal liability, concluding that the applicant was on notice of circumstances that could give rise to third-party proprietary claims, that it was practically impossible for the trustee to determine the status or merit of such claims, that the UK SFO had been notified and did not oppose the application, and that transferring to a New Zealand registered trustee did not impede third parties' ability to bring proceedings; a s 66 blessing order was unnecessary to bolster the Benjamin-type...

Court Disposition

Application granted: court authorised replacement of trustee and transfer of trust assets to FFP Trustee (NZ) 2 Ltd without personal liability for the applicant and ordered recovery of the applicant's reasonable costs from the trust funds.

Orders

  • Replace Triple A Trustees Limited with FFP Trustee (NZ) 2 Ltd as trustee of the Triple A Trust
  • Authorise Triple A Trustees Limited to transfer the Trust assets to FFP Trustee (NZ) 2 Ltd without personal liability (Benjamin-type order)