SILVER FERN FARMS LIMITED V SOUTHERN DEER CORPORATION LIMITED HC DUN CIV-2009-412-000319

SILVER FERN FARMS LIMITED V SOUTHERN DEER CORPORATION LIMITED HC DUN CIV-2009-412-000319

Southern Deer held the NZ Deer Farms liquidation proceeds as a bare trustee obliged to follow Silver Fern's directions; equitable set-off was excluded by the trust terms and clear implication given the parties' agreement and purpose of the trusteeship; the corporate veil should not be lifted and agency did not negate trustee duties; summary judgment for Silver Fern for $1,449,038.89 with interest was therefore appropriate.

Citation
openlaw-2cb7ea65_50dd_4f3d_abcb_b3b2414c567e.pdf
Parties
Plaintiff/applicant: Silver Fern Farms Limited; Defendant/respondent: Southern Deer Corporation Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
5 August 2011
Procedural Posture
Civil (trust; Breach of Trust; Contractual; Equitable Remedies) / Summary Judgment Application (high Court Hearing)
Outcome
Summary judgment entered for plaintiff (Silver Fern Farms Limited)
Legal Topics
Breach of Trust, Equitable Set Off, Lifting the Corporate Veil, Summary Judgment, Stay or Restraint of Proceedings
Trusts Equity Company Law Contract Civil Procedure Breach of Trust Equitable Set Off Lifting the Corporate Veil +2 more

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Parties

Silver Fern Farms Limited

Plaintiff/applicant

Southern Deer Corporation Limited

Defendant/respondent

Procedural Posture

Civil (trust; Breach of Trust; Contractual; Equitable Remedies) / Summary Judgment Application (high Court Hearing)

Legal Issues

  1. 1 Whether Southern Deer held NZ Deer Farms share proceeds as trustee obligated to follow beneficiary directions
  2. 2 Whether equitable set-off was available to Southern Deer against the trust funds
  3. 3 Whether the corporate veil should be lifted to allow set-off or identity of parties

Ratio Decidendi

Southern Deer held the NZ Deer Farms liquidation proceeds as a bare trustee obliged to follow Silver Fern's directions; equitable set-off was excluded by the trust terms and clear implication given the parties' agreement and purpose of the trusteeship; the corporate veil should not be lifted and agency did not negate trustee duties; summary judgment for Silver Fern for $1,449,038.89 with interest was therefore appropriate.

Court Disposition

Summary judgment entered for plaintiff (Silver Fern Farms Limited)

Orders

  • Judgment for plaintiff in the sum of $1,449,038.89 (NZD)
  • Judgment for interest on each instalment at the Judicature Act rate: $789,772.43 from 30 July 2008; $627,872.81 from 26 September 2008; $31,393.65 from 10 December 2008