BLANCHETT V FAGAN HC HAM CIV-2011-419-1583

BLANCHETT V FAGAN HC HAM CIV-2011-419-1583

The court held the funds were held on resulting trust for the company because the funds were sourced from the company's accounts, the account was entered and maintained as a company asset in the company's general ledger, and there was no convincing contemporaneous evidence that the company intended to transfer beneficial ownership or that the payments were a reduction of a debt owed to the trustees such as to displace a resulting trust.

Citation
openlaw-cb5a8165_99fb_420e_8a9a_2b2577c892b8.pdf
Parties
Applicant: David Murray Blanchett; Applicant: John Howard Ronald Fisk; First Respondent: Robin Christopher Fagan; First Respondent: Carol Ann Fagan; Second Respondent: Bank of New Zealand
Court
High Court
Jurisdiction
New Zealand
Judgment Date
1 June 2012
Procedural Posture
Receivership / Judgment Following Hearing on Originating Application
Outcome
Application granted in part: funds declared held on resulting trust for the company and receivers granted directions sought.
Legal Topics
Resulting Trust, Beneficial Ownership of Bank Account, Corporate Asset Classification, Accounting Records as Evidence
Trusts Property Insolvency/receivership Equity Resulting Trust Beneficial Ownership of Bank Account Corporate Asset Classification Accounting Records as Evidence

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 3 Authorities cited 1 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

David Murray Blanchett

Applicant

John Howard Ronald Fisk

Applicant

Robin Christopher Fagan

First Respondent

Carol Ann Fagan

First Respondent

Bank of New Zealand

Second Respondent

Procedural Posture

Receivership / Judgment Following Hearing on Originating Application

Legal Issues

  1. 1 Whether funds in account held on resulting trust for the company
  2. 2 Whether payments were made in reduction of a debt to shareholders (thereby negating a resulting trust)
  3. 3 Whether company's accounting records evidence beneficial ownership

Ratio Decidendi

The court held the funds were held on resulting trust for the company because the funds were sourced from the company's accounts, the account was entered and maintained as a company asset in the company's general ledger, and there was no convincing contemporaneous evidence that the company intended to transfer beneficial ownership or that the payments were a reduction of a debt owed to the trustees such as to displace a resulting trust.

Court Disposition

Application granted in part: funds declared held on resulting trust for the company and receivers granted directions sought.

Orders

  • Declare that the company (Llewecar Limited) is the sole beneficial owner of the account and of the funds in the account.
  • Order Bank of New Zealand to transfer the funds in the account at the direction of the Receivers.