BURGESS v MONK [2017] NZHC 3255

BURGESS v MONK [2017] NZHC 3255

Plaintiffs failed to prove any proprietary interest by constructive trust; the 1980 agreement was unenforceable as to CTE company formalities; Molly's 1998 will conferred discretionary powers on trustees not a binding precatory trust; trustees did not breach fiduciary or trustee duties in the conduct and sale and acted within discretion; sale to Armer Farms was at market value and Armer lacked constructive knowledge of any trustee breach; solicitors did not assume de facto trusteeship and did not breach fiduciary duties or negligence; all claims dismissed and defendants awarded costs.

Citation
[2017] NZHC 3255
Parties
First Plaintiff: Warwick James Burgess; Second Plaintiff: CTE Burgess Ltd; First Defendant: Phillip Charles Monk; Second Defendant: New Zealand Guardian Trust Company Ltd; Third Defendant: David Trounson; Fourth Defendant: Alisdair Hugh Morrison; Fifth Defendant: Armer Farms (N.I.) Ltd; Sixth Defendant: O'Sullivan Clemens; Seventh Defendants: Graeme William Elvin and Sharlene Darragh; Eighth Defendant: Tihoi Holdings Ltd
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 December 2017
Procedural Posture
Civil Trial (property, Trusts and Fiduciary Claims) / Trial Judgment (final)
Outcome
Judgment for defendants; all plaintiffs' claims dismissed
Legal Topics
Constructive Trust, Knowing Receipt, Breach of Trustee Duties, Breach of Fiduciary Duty, Sale at Undervalue, Settlement Agreement Default, Limitation and Laches, Disclosure Duties of Trustees, Institutional Vs Remedial Constructive Trusts, Precatory Trust Vs Trustee Discretion
Trusts Fiduciary Duty Equity Property Law Estate Law Company Law Negligence Contract Law +10 more

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Parties

Warwick James Burgess

First Plaintiff

CTE Burgess Ltd

Second Plaintiff

Phillip Charles Monk

First Defendant

New Zealand Guardian Trust Company Ltd

Second Defendant

David Trounson

Third Defendant

Alisdair Hugh Morrison

Fourth Defendant

Armer Farms (N.I.) Ltd

Fifth Defendant

O'Sullivan Clemens

Sixth Defendant

Graeme William Elvin and Sharlene Darragh

Seventh Defendants

Tihoi Holdings Ltd

Eighth Defendant

Procedural Posture

Civil Trial (property, Trusts and Fiduciary Claims) / Trial Judgment (final)

Legal Issues

  1. 1 Whether constructive trusts (Lankow v Rose type and Lake v Bayliss type) arose in favour of plaintiff beneficiaries
  2. 2 Whether the 1980 sale agreement was enforceable against the estate and company
  3. 3 Whether Christian's and Molly's trustees breached trustee duties or fiduciary duties (including development/maintenance of farm)

Ratio Decidendi

Plaintiffs failed to prove any proprietary interest by constructive trust; the 1980 agreement was unenforceable as to CTE company formalities; Molly's 1998 will conferred discretionary powers on trustees not a binding precatory trust; trustees did not breach fiduciary or trustee duties in the conduct and sale and acted within discretion; sale to Armer Farms was at market value and Armer lacked constructive knowledge of any trustee breach; solicitors did not assume de facto trusteeship and did not breach fiduciary duties or negligence; all claims dismissed and defendants awarded costs.

Court Disposition

Judgment for defendants; all plaintiffs' claims dismissed