SR HAMILTON CORPORATE TRUSTEE LIMITED AND LAMB TRUST SERVICES LIMITED v STEPHEN ROYCE WHITE & ORS [2017] NZHC 1248

SR HAMILTON CORPORATE TRUSTEE LIMITED AND LAMB TRUST SERVICES LIMITED v STEPHEN ROYCE WHITE & ORS [2017] NZHC 1248

Given the pragmatic withdrawal of the removal application, the lack of a suitable substitute trustee, the minimal impact on distributions to Dr Chambers and the objective that beneficiaries not be left out of pocket, the court directed that reasonable costs and disbursements incurred by the trustees, Dr Chambers and Mr White and Ms Parsons in respect of attendances involving both proceedings be paid out of the trust fund and declined to make a personal costs order against White and Parsons on the withdrawn removal application.

Citation
[2017] NZHC 1248
Parties
Plaintiff/trustee: SR Hamilton Corporate Trustee Limited; Plaintiff/trustee: Lamb Trust Services Limited; Defendant/beneficiary: Stephen Royce White; Defendant/beneficiary: Maureen Edith Parsons; Defendant/beneficiary: Dr Jocelyn Chambers
Court
High Court
Jurisdiction
New Zealand
Judgment Date
8 June 2017
Procedural Posture
Applications Under the Trustee Act 1956 (s 66 Directions and Removal of Trustees) and Related Costs Proceedings / Post Judgment Costs Determination Following High Court and Court of Appeal Judgments
Outcome
Costs ordered to be paid out of the trust fund for each of the trustees, Dr Chambers and Mr White and Ms Parsons in respect of attendances involving both proceedings; no personal costs order against Mr White and Ms Parsons on the withdrawn removal application; leave reserved for disputes as to reasonableness of costs.
Legal Topics
Trustee Removal, Directions Under S 66 Trustee Act 1956, Allocation of Costs From Trust Funds, Beneficiary Rights in Sale of Trust Property, Valuation Dispute
Trusts Civil Procedure Costs Appeal Trustee Removal Directions Under S 66 Trustee Act 1956 Allocation of Costs From Trust Funds Beneficiary Rights in Sale of Trust Property +1 more

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Parties

SR Hamilton Corporate Trustee Limited

Plaintiff/trustee

Lamb Trust Services Limited

Plaintiff/trustee

Stephen Royce White

Defendant/beneficiary

Maureen Edith Parsons

Defendant/beneficiary

Dr Jocelyn Chambers

Defendant/beneficiary

Procedural Posture

Applications Under the Trustee Act 1956 (s 66 Directions and Removal of Trustees) and Related Costs Proceedings / Post Judgment Costs Determination Following High Court and Court of Appeal Judgments

Legal Issues

  1. 1 Whether the trustees should be removed for misconduct
  2. 2 Whether an enforceable agreement existed between trustees and a beneficiary to purchase trust property
  3. 3 Appropriate mechanism to offer and sell trust property to beneficiaries

Ratio Decidendi

Given the pragmatic withdrawal of the removal application, the lack of a suitable substitute trustee, the minimal impact on distributions to Dr Chambers and the objective that beneficiaries not be left out of pocket, the court directed that reasonable costs and disbursements incurred by the trustees, Dr Chambers and Mr White and Ms Parsons in respect of attendances involving both proceedings be paid out of the trust fund and declined to make a personal costs order against White and Parsons on the withdrawn removal application.

Court Disposition

Costs ordered to be paid out of the trust fund for each of the trustees, Dr Chambers and Mr White and Ms Parsons in respect of attendances involving both proceedings; no personal costs order against Mr White and Ms Parsons on the withdrawn removal application; leave reserved for disputes as to reasonableness of costs.

Orders

  • The reasonable costs and disbursements incurred by the Trustees, Dr Jocelyn Chambers and by Mr Stephen Royce White and Ms Maureen Edith Parsons respectively in respect of attendances involving both proceedings are to be paid out of the trust fund.
  • No order for costs is made against Mr White and Ms Parsons personally on the withdrawn removal application.