PALEAE v PALEAE [2017] NZHC 2043

PALEAE v PALEAE [2017] NZHC 2043

The court ordered substitution of trustees because the proposed trustees had valid consents and satisfied eligibility concerns (citizenship, employment, no adverse credit) thereby removing the obstacle identified in the interim judgment; the plaintiffs were entitled to costs on a 2B basis and reasonable disbursements to be paid from trust assets.

Citation
[2017] NZHC 2043
Parties
Plaintiff / Trustee (the Paleae Number 2 Family Trust): Tina Kristina Paleae; Plaintiff / Trustee (the Paleae Number 2 Family Trust): Anatasia Siauini; Defendant / Trustee (the Paleae Family Trust): Moana Paleae; Defendant / Trustee (the Paleae Family Trust): Tiana Paleae; Defendant / Trustee (the Paleae Family Trust): Ioane Paleae; Defendant / Trustee (the Paleae Family Trust): Tina Paleae
Court
High Court
Jurisdiction
New Zealand
Judgment Date
25 August 2017
Procedural Posture
Trusts — Trustee Appointment (trustee Act 1956) / Final Judgment (on the Papers)
Outcome
Substitution of trustees ordered; plaintiffs awarded costs and disbursements from trust assets.
Legal Topics
Trustee Appointment, Substitution of Trustees, Costs and Disbursements, Trust Administration
Trusts Civil Procedure Costs Trustee Appointment Substitution of Trustees Costs and Disbursements Trust Administration

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Parties

Tina Kristina Paleae

Plaintiff / Trustee (the Paleae Number 2 Family Trust)

Anatasia Siauini

Plaintiff / Trustee (the Paleae Number 2 Family Trust)

Moana Paleae

Defendant / Trustee (the Paleae Family Trust)

Tiana Paleae

Defendant / Trustee (the Paleae Family Trust)

Ioane Paleae

Defendant / Trustee (the Paleae Family Trust)

Tina Paleae

Defendant / Trustee (the Paleae Family Trust)

Procedural Posture

Trusts — Trustee Appointment (trustee Act 1956) / Final Judgment (on the Papers)

Legal Issues

  1. 1 Whether the court should appoint substitute trustees for the Paleae Family Trust
  2. 2 Whether the proposed appointees were eligible and suitable (citizenship, employment, credit status)
  3. 3 Whether the plaintiffs are entitled to recover costs and disbursements from trust assets

Ratio Decidendi

The court ordered substitution of trustees because the proposed trustees had valid consents and satisfied eligibility concerns (citizenship, employment, no adverse credit) thereby removing the obstacle identified in the interim judgment; the plaintiffs were entitled to costs on a 2B basis and reasonable disbursements to be paid from trust assets.

Court Disposition

Substitution of trustees ordered; plaintiffs awarded costs and disbursements from trust assets.

Orders

  • Tina Kristina Paleae, Anatasia Siauini, Lole Paleae and Iese Tupu Paleae are appointed as trustees of the Paleae Family Trust in substitution for Moana Paleae, Tiana Paleae, Ioane Paleae and Tina Paleae.
  • Plaintiffs are entitled to recover their costs calculated on a 2B basis and their reasonable disbursements from the assets of the Paleae Family Trust; any difficulty in calculating costs or disbursements is to be referred to the Registrar.