CLIENT TRUSTEE SERVICES LTD v KHODAVERDI [2023] NZHC 2884
The court concluded that although s116(5) effects vesting as a matter of law, it was appropriate to vary the earlier orders under r11.10 to correct the trust name and to include an express s116 vesting order identifying the property by title (45 Hunt Street, Dunedin OT201/253) to satisfy LINZ registration...
Source-derived case information.
- Citation
- [2023] NZHC 2884
- Parties
- Applicant: Client Trustee Services Limited; Respondent: Laura Michelle Khodaverdi; Replacement Trustee / Interested Party: Public Trust
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 13 October 2023
- Procedural Posture
- Trusts Act 2019 Trustee Removal and Replacement / Application for Variation of Orders (post Judgment)
- Outcome
- Variation granted: prior orders amended to correct trust name and to include express vesting of the specified property in the Public Trust as replacement trustee; amended orders approved for sealing.
- Legal Topics
- Trusts Act 2019 S114 and S116, High Court Rules R11.10, Land Title Registration (linz) Requirements
Source-derived case record
Summary, issues, holding and outcome
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Parties
Client Trustee Services Limited
Applicant
Laura Michelle Khodaverdi
Respondent
Public Trust
Replacement Trustee / Interested Party
Procedural Posture
Trusts Act 2019 Trustee Removal and Replacement / Application for Variation of Orders (post Judgment)
Legal Issues
- 1 Whether the prior order should be varied to correct the name of the trust
- 2 Whether the court should add an express vesting order identifying the property by title to satisfy LINZ despite s116 automatic vesting
- 3 Whether variation is appropriate under High Court Rules r11.10
Ratio Decidendi
The court concluded that although s116(5) effects vesting as a matter of law, it was appropriate to vary the earlier orders under r11.10 to correct the trust name and to include an express s116 vesting order identifying the property by title (45 Hunt Street, Dunedin OT201/253) to satisfy LINZ registration requirements, and approved the amended draft orders for sealing.
Court Disposition
Variation granted: prior orders amended to correct trust name and to include express vesting of the specified property in the Public Trust as replacement trustee; amended orders approved for sealing.
Orders
- Amend references from 'L K Family Trust' to 'LK Trust' in the judgment of Gendall J dated 7 July 2023
- Order under s114 Trusts Act 2019 replacing the co‑trustee with the Public Trust
Full Case Text
Judgment text and source record
1 paragraphs
CLIENT TRUSTEE SERVICES LTD v KHODAVERDI [2023] NZHC 2884 [13 October 2023]IN THE HIGH COURT OF NEW ZEALANDDUNEDIN REGISTRYI TE KŌTI MATUA O AOTEAROAŌTEPOTI ROHECIV-2022-412-92[2023] NZHC 2884IN THE MATTER OF The L K Family TrustANDIN THE MATTER OF The Trusts Act 2019ANDUNDER Part 19 of the High Court Rules 2016BETWEEN CLIENT TRUSTEE SERVICES LIMITEDApplicantAND LAURA MICHELLE KHODAVERDIRespondentHearing: On the papersJudgment: 13 October 2023JUDGMENT OF HARLAND JApplication for variation to ordersIntroduction[1] On 7 July 2023, Gendall J made orders to remove Client Trustee ServicesLimited (CTSL) as trustee of the LK Family Trust and appoint the Public Trust in itsplace.1[2] Counsel for the Public Trust filed a memorandum on 6 October 2023requesting a variation to the orders to allow for the sealing of an order to enable the1 Client Trustee Services Ltd v Khodaverdi [2023] NZHC 1772.transfer of the property at 45 Hunt Street, Dunedin (the Property) into the name of thePublic Trust as replacement trustee. This is because counsel noted:(a) the Trust was referred to as "the L K Family Trust", instead of the "L KTrust"; and(b) the orders do not mention the vesting of the Property in the Public Trustas the replacement trustee pursuant to s 116 of the Trusts Act 2019 (theTrusts Act).[3] As a result of s 116(5) of the Trusts Act, the provisions of s 116(2)(b) operateas a matter of law which means that the order made by Gendall J, to replace the co-trustee with the Public Trust, automatically vests the property in the Public Trustwithout the need for any conveyance, transfer or assignment, subject to any liabilitiesattaching to the property.[4] I queried therefore whether a variation to the order was required and the PublicTrust, in a speedy memorandum in response, has advised that, although sharing thisview, the requested variation to the order is to satisfy Land Information New Zealand(LINZ) requirements to enable transfer of the land title. This is because the order mustspecifically identify the property by title identifier and, as counsel correctly notes,LINZ has no knowledge of what specific property is held by the trust and LINZ doesnot register the names of trusts on land titles. The order would therefore serve to linkthe property to the trust.[5] I am satisfied that it is appropriate to make both of the variations sought; thefirst under r 11.10 of the High Court Rules 2016 and the second to provide for clarityneeded for the purposes of LINZ.[6] I accordingly vary the judgment of Gendall J of 7 August 2023 by:(a) amending the references in his judgment to the LK Family Trust to the LKTrust; and(b) as well as ordering under s 114 of the Trusts Act the replacement of theco-trustee with the Public Trust, specifying an order under s 116 of theTrust Act that the property at 45 Hunt Street, Dunedin (Title IdentifierOT201/253) is vested in the Public Trust as a co-trustee of the LK Trust.[7] I approve the draft orders dated 7 July 2023 for sealing.____________________Harland J