HANSARD v HANSARD [2013] NZHC 1692

HANSARD v HANSARD [2013] NZHC 1692

The court found on the balance of probabilities that, despite imperfect documentation, the financial statements, trustee conduct (including signing and benefitting from accounts), and contemporaneous records established that MHP's assets and liabilities were effectively transferred and that the D & S Trust assumed indebtedness to the G G Trust; alleged breaches of trustee unanimity, fiduciary duty and estoppel were not proven and plaintiffs did not act dishonestly, therefore the D & S Trust is liable to repay $1,222,658.

Citation
[2013] NZHC 1692
Parties
Plaintiffs (trustees/settlers): Gerald Guy Hansard and Diana Hansard as trustees of the G G Hansard Family Trust No 2; First Named Defendant (trustee/director): David Guy Hansard as trustee of the D & S Hansard Family Trust; Second Named Defendant (trustee/director): Sharon Grace Hansard as trustee of the D & S Hansard Family Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
4 July 2013
Procedural Posture
Civil Trusts and Debt Recovery (high Court) / Final Judgment on Liability and Relief Delivered by High Court Judge (4 July 2013)
Outcome
Judgment for plaintiffs; D & S Hansard Family Trust liable for the claimed debt
Legal Topics
Breach of Trust, Dishonest Assistance, Directors' Duties, Unanimity of Trustees, Estoppel, Debt Recovery
Trusts Company Law Equity Family/relationship Property Law Breach of Trust Dishonest Assistance Directors' Duties Unanimity of Trustees +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Gerald Guy Hansard and Diana Hansard as trustees of the G G Hansard Family Trust No 2

Plaintiffs (trustees/settlers)

David Guy Hansard as trustee of the D & S Hansard Family Trust

First Named Defendant (trustee/director)

Sharon Grace Hansard as trustee of the D & S Hansard Family Trust

Second Named Defendant (trustee/director)

Procedural Posture

Civil Trusts and Debt Recovery (high Court) / Final Judgment on Liability and Relief Delivered by High Court Judge (4 July 2013)

Legal Issues

  1. 1 Whether the D & S Hansard Family Trust owes $1,222,658 to the G G Hansard Family Trust following restructuring and asset transfers
  2. 2 Whether transfers of MHP assets and allocation of prior advances were effective and supported by consideration despite lack of formal documentation
  3. 3 Whether Sharon can avoid liability by pleading lack of unanimity under cl 19 of the trust deed and s129 Companies Act 1993

Ratio Decidendi

The court found on the balance of probabilities that, despite imperfect documentation, the financial statements, trustee conduct (including signing and benefitting from accounts), and contemporaneous records established that MHP's assets and liabilities were effectively transferred and that the D & S Trust assumed indebtedness to the G G Trust; alleged breaches of trustee unanimity, fiduciary duty and estoppel were not proven and plaintiffs did not act dishonestly, therefore the D & S Trust is liable to repay $1,222,658.

Court Disposition

Judgment for plaintiffs; D & S Hansard Family Trust liable for the claimed debt

Orders

  • D & S Hansard Family Trust to pay G G Hansard Family Trust No 2 the sum of 1,222,658 NZD