GREY v GREY [2015] NZHC 1614

GREY v GREY [2015] NZHC 1614

The settlement reached in the Family Court and subsequent course of conduct established an obligation on the Grey Family Trust to provide $60,000 to satisfy the amended testamentary provision; the trustees' conduct ratified that obligation and the High Court will exercise its inherent equitable jurisdiction to...

Source-derived case information.

Citation
[2015] NZHC 1614
Parties
Appellant: Douglas Grey; Respondent: Darrell Grey
Court
High Court
Jurisdiction
New Zealand
Judgment Date
10 July 2015
Procedural Posture
Appeal From District Court / Interim Judgment (high Court)
Outcome
Interim judgment: appeal continues; Court ordered trustees to account and advise on raising $60,000 and preserved equitable remedies pending further proceedings
Legal Topics
Charging Order, Constructive Trust, Discretionary Trust Beneficiaries, Settlement Enforcement, Breach of Fiduciary Duty, Executor Duties, Inherent Jurisdiction
Trusts Equity Family Protection Civil Procedure Estate Administration Charging Order Constructive Trust Discretionary Trust Beneficiaries +4 more

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Parties

Douglas Grey

Appellant

Darrell Grey

Respondent

Procedural Posture

Appeal From District Court / Interim Judgment (high Court)

Legal Issues

  1. 1 Whether a charging order can attach property held by an express discretionary trust
  2. 2 Whether the Grey Family Trust (GFT) is liable to pay $60,000 pursuant to the Family Court settlement and amended will clause
  3. 3 Whether the actions of one trustee/beneficiary bound the co-trustees and created an obligation enforceable against trust property

Ratio Decidendi

The settlement reached in the Family Court and subsequent course of conduct established an obligation on the Grey Family Trust to provide $60,000 to satisfy the amended testamentary provision; the trustees' conduct ratified that obligation and the High Court will exercise its inherent equitable jurisdiction to require the trustees to account and state whether they can or will raise the $60,000, pending further orders including possible trustee removal or enforcement such as charging orders.

Court Disposition

Interim judgment: appeal continues; Court ordered trustees to account and advise on raising $60,000 and preserved equitable remedies pending further proceedings

Orders

  • Trustees of the Grey Family Trust must, within one calendar month, account to the Court whether they can raise $60,000 from trust assets without selling them by borrowing or, alternatively, explain why they cannot sell trust assets to raise $60,000
  • Trustees must advise the Court whether they are prepared to repay the debt of $60,000 to Mr Douglas Grey as executor of his father's estate