BENTLEY [2017] NZHC 1937

BENTLEY [2017] NZHC 1937

Because the applicants faced real and significant conflicts of interest and potential personal exposure that risked prejudicing the interests and proper administration for beneficiaries, it was expedient under s 21 Administration Act 1969 and appropriate under s 51 Trustee Act 1956 to remove the executors and discharge the trustees and to appoint the Public Trust as replacement executor and trustee; appointment could not practicably be achieved without court assistance.

Citation
[2017] NZHC 1937
Parties
Applicant / Former Executor / Director of BBT: Ian David Bentley; Applicant / Former Executor and Trustee: Wayne Keith Startup; Applicant / Former Trustee: BBT Law Trustees Limited; Respondents / Plaintiffs in Related Proceedings: Goldman Plaintiffs; Proposed Replacement Trustee and Executor: Public Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
15 August 2017
Procedural Posture
Applications for Removal of Executors and Discharge/appointment of Trustees Under the Administration Act 1969 and Trustee Act 1956 / Judgment on Applications (final Orders)
Outcome
Application to remove executors and to discharge trustees granted; Public Trust appointed as sole executor and sole trustee; costs reserved.
Legal Topics
Removal of Executors, Discharge of Trustees, Appointment of Replacement Trustees, Conflict of Interest, Trust Administration
Trusts Estates Civil Procedure Fiduciary Law Removal of Executors Discharge of Trustees Appointment of Replacement Trustees Conflict of Interest +1 more

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Parties

Ian David Bentley

Applicant / Former Executor / Director of BBT

Wayne Keith Startup

Applicant / Former Executor and Trustee

BBT Law Trustees Limited

Applicant / Former Trustee

Goldman Plaintiffs

Respondents / Plaintiffs in Related Proceedings

Public Trust

Proposed Replacement Trustee and Executor

Procedural Posture

Applications for Removal of Executors and Discharge/appointment of Trustees Under the Administration Act 1969 and Trustee Act 1956 / Judgment on Applications (final Orders)

Legal Issues

  1. 1 Whether it is expedient to remove the named executors under s 21 Administration Act 1969
  2. 2 Whether trustees may be discharged and replacement trustees appointed under ss 46 and/or 51 Trustee Act 1956
  3. 3 Whether the existence of conflicts of interest and risk of personal liability justify removal/discharge

Ratio Decidendi

Because the applicants faced real and significant conflicts of interest and potential personal exposure that risked prejudicing the interests and proper administration for beneficiaries, it was expedient under s 21 Administration Act 1969 and appropriate under s 51 Trustee Act 1956 to remove the executors and discharge the trustees and to appoint the Public Trust as replacement executor and trustee; appointment could not practicably be achieved without court assistance.

Court Disposition

Application to remove executors and to discharge trustees granted; Public Trust appointed as sole executor and sole trustee; costs reserved.

Orders

  • Ian David Bentley and Wayne Keith Startup are removed as executors of the estate of Roy Wilson
  • The Public Trust is appointed sole executor of the estate of Roy Wilson