COLIN WILLIAM BRIGHT AND GEORGE MCCULLOCH JOHNSTON AS EXECUTORS OF THE ESTATE OF JEFFREY LLOYD REID HC AK CIV-2012-404-7084

COLIN WILLIAM BRIGHT AND GEORGE MCCULLOCH JOHNSTON AS EXECUTORS OF THE ESTATE OF JEFFREY LLOYD REID HC AK CIV-2012-404-7084

Given full disclosure, confirmations that the deceased's syndicate remained within the Equitas arrangements, up-to-date financial information showing Equitas' capacity, beneficiary indemnities and absence of creditor claims, the Court followed Re Yorke/Hall/Thompson and concluded the risk of contingent claims was sufficiently remote and therefore granted leave to the executors to distribute the residuary estate without retention for contingent Lloyd's liabilities.

Citation
openlaw-24ae07b2_1de5_4389_b8be_0bdde1663106.pdf
Parties
Executors/applicants: Colin William Bright and George McCulloch Johnston; Deceased: Jeffrey Lloyd Reid
Court
High Court
Jurisdiction
New Zealand
Judgment Date
29 November 2012
Procedural Posture
Originating Application Under S 66 of the Trustee Act 1956 and Inherent Jurisdiction / Application for Directions for Final Distribution of Residuary Estate
Outcome
Leave granted permitting executors to distribute the residuary estate without retention for contingent Lloyd's liabilities up to and including 1992
Legal Topics
Executor Liability, Distribution of Estate, Contingent Liabilities, Lloyd's Ritc/equitas Restructuring, Court Directions for Executors
Trusts and Estates Probate Insurance and Reinsurance Equity Civil Procedure Executor Liability Distribution of Estate Contingent Liabilities +2 more

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Parties

Colin William Bright and George McCulloch Johnston

Executors/applicants

Jeffrey Lloyd Reid

Deceased

Procedural Posture

Originating Application Under S 66 of the Trustee Act 1956 and Inherent Jurisdiction / Application for Directions for Final Distribution of Residuary Estate

Legal Issues

  1. 1 Whether executors may distribute the residuary estate without retention for contingent liabilities arising from deceased's underwriting at Lloyd's
  2. 2 Whether court directions under s 66/inherent jurisdiction protect executors from personal liability for subsequent contingent claims
  3. 3 Whether Equitas and subsequent reinsurance arrangements (including National Indemnity) render the risk of claims sufficiently remote to permit distribution

Ratio Decidendi

Given full disclosure, confirmations that the deceased's syndicate remained within the Equitas arrangements, up-to-date financial information showing Equitas' capacity, beneficiary indemnities and absence of creditor claims, the Court followed Re Yorke/Hall/Thompson and concluded the risk of contingent claims was sufficiently remote and therefore granted leave to the executors to distribute the residuary estate without retention for contingent Lloyd's liabilities.

Court Disposition

Leave granted permitting executors to distribute the residuary estate without retention for contingent Lloyd's liabilities up to and including 1992

Orders

  • Grant leave to the executors, Colin William Bright and George McCulloch Johnston, to distribute the residuary estate of Jeffrey Lloyd Reid without making any retention or provision in respect of any contingent liability arising from insurance or reinsurance underwritten by the deceased in his capacity as a Lloyd's name