DEVER V KNOBLOCH & ORS AND ANOR HC NAP CIV-2008-441-000537

DEVER V KNOBLOCH & ORS AND ANOR HC NAP CIV-2008-441-000537

Defendants failed to discharge the onus for summary judgment because there are tenable triable issues as to whether the trustees' decision was tainted by lack of unanimous substantive participation and potential conflicts of interest by trustee-beneficiaries; although the trustees' substantive decision to account for the plaintiff's company distribution was reasonable and the equitable estoppel claim has weak prospects, those findings do not eliminate the viable process-based challenges requiring trial or court approval of the decision.

Citation
openlaw-f3ffb449_bce3_43db_a6b7_c6c75c3bdac5.pdf
Parties
Plaintiff: Alan Guy Dever; First Defendant: Graeme Stuart Knobloch; First Defendant: Alan Edward Dever; First Defendant: Jeanne Marie Thecla Dever; First Defendant: John Richard Billington; Second Defendant: Jeanne Marie Thecla Dever; Second Defendant: Wendy Janet Thecla Hoy; Second Defendant: Neale Alan Kendall Dever; Second Defendant: Penelope Jean Marie Dever; Second Defendant: Catherine Adelaide Dever
Court
High Court
Jurisdiction
New Zealand
Judgment Date
29 October 2009
Procedural Posture
Trusts Civil (high Court) / Defendants' Summary Judgment Application
Outcome
Defendants' application for summary judgment dismissed
Legal Topics
Breach of Trust, Conflict of Interest, Unanimity of Trustees, Equitable Estoppel, Trustee Removal, Constructive Trust, Summary Judgment
Trusts Equity Civil Procedure Breach of Trust Conflict of Interest Unanimity of Trustees Equitable Estoppel Trustee Removal +2 more

Case Brief

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Parties

Alan Guy Dever

Plaintiff

Graeme Stuart Knobloch

First Defendant

Alan Edward Dever

First Defendant

Jeanne Marie Thecla Dever

First Defendant

John Richard Billington

First Defendant

Jeanne Marie Thecla Dever

Second Defendant

Wendy Janet Thecla Hoy

Second Defendant

Neale Alan Kendall Dever

Second Defendant

Penelope Jean Marie Dever

Second Defendant

Catherine Adelaide Dever

Second Defendant

Procedural Posture

Trusts Civil (high Court) / Defendants' Summary Judgment Application

Legal Issues

  1. 1 Whether trustees breached duties by excluding a discretionary beneficiary from distribution
  2. 2 Whether the trustees acted without requisite unanimity
  3. 3 Whether trustees' participation while conflicted (self-dealing/conflict of interest) vitiates the distribution decision

Ratio Decidendi

Defendants failed to discharge the onus for summary judgment because there are tenable triable issues as to whether the trustees' decision was tainted by lack of unanimous substantive participation and potential conflicts of interest by trustee-beneficiaries; although the trustees' substantive decision to account for the plaintiff's company distribution was reasonable and the equitable estoppel claim has weak prospects, those findings do not eliminate the viable process-based challenges requiring trial or court approval of the decision.

Court Disposition

Defendants' application for summary judgment dismissed

Orders

  • Defendants' application for summary judgment dismissed
  • No order as to costs