APPLICATION FOR VESTING ORDER – JEFFREY & ORS [2018] NZHC 1326

APPLICATION FOR VESTING ORDER – JEFFREY & ORS [2018] NZHC 1326

The Court has jurisdiction to vest the trust property in the continuing trustees because s52(1)(h) of the Trustee Act 1956, read with the Court's inherent jurisdiction and consistent High Court authority, authorises vesting where a removed trustee remains the registered owner and thereby impedes trust administration; in the absence of opposition and on the facts presented, the vesting order was justified.

Citation
[2018] NZHC 1326
Parties
Applicant (trustee): Douglas Wayne Jeffrey; Applicant (trustee): Carla Hirani Jeffrey; Registered Owner / Former Trustee: Kathleen May Jeffrey
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 June 2018
Procedural Posture
Vesting Order Under Part 19 High Court Rules and S52 Trustee Act 1956 / Judgment on Application (application to Vest Trust Land in Continuing Trustees)
Outcome
Application granted: vesting order made
Legal Topics
Vesting Order, Trustee Removal, Trust Property Registration, S52 Trustee Act Jurisdiction, Inherent Jurisdiction
Trusts Property Civil Procedure Vesting Order Trustee Removal Trust Property Registration S52 Trustee Act Jurisdiction Inherent Jurisdiction

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Parties

Douglas Wayne Jeffrey

Applicant (trustee)

Carla Hirani Jeffrey

Applicant (trustee)

Kathleen May Jeffrey

Registered Owner / Former Trustee

Procedural Posture

Vesting Order Under Part 19 High Court Rules and S52 Trustee Act 1956 / Judgment on Application (application to Vest Trust Land in Continuing Trustees)

Legal Issues

  1. 1 Whether the Court may vest land held in trust in the continuing trustees where a removed trustee remains the registered owner
  2. 2 Whether s52 of the Trustee Act 1956 (in particular s52(1)(h)) together with the Court's inherent jurisdiction authorises the vesting order
  3. 3 Whether it is appropriate to make the vesting order where the removed trustee has been served but does not oppose the application

Ratio Decidendi

The Court has jurisdiction to vest the trust property in the continuing trustees because s52(1)(h) of the Trustee Act 1956, read with the Court's inherent jurisdiction and consistent High Court authority, authorises vesting where a removed trustee remains the registered owner and thereby impedes trust administration; in the absence of opposition and on the facts presented, the vesting order was justified.

Court Disposition

Application granted: vesting order made

Orders

  • The interests of Douglas Wayne Jeffrey, Carla Hirani Jeffrey, and Kathleen May Jeffrey in the property at 43A Dinsdale Road, Hamilton (identifier SA45B/646, South Auckland Registry, Lot 4 Deposited Plan 22996) are vested in Douglas Wayne Jeffrey and Carla Hirani Jeffrey as trustees of the Jeffrey Doherty Family Trust.
  • No order as to costs.