DOREEN BROWN TRUST FUND [2020] NZHC 449
The court concluded that because the settlor's trust deed provided a gift over and Swimming Canterbury West Coast Incorporated's constitution aligns with the settlor's charitable purpose, the trustees were entitled to pay liabilities, transfer remaining assets to that charity, and thereafter wind up and dissolve the...
Source-derived case information.
- Citation
- [2020] NZHC 449
- Parties
- Applicant/trustee: J O Turpin; Applicant/trustee: M Morrison; Applicant/trustee: M F Toomey; Interested Party/respondent: Attorney-General; Subject Trust: The Doreen Brown Trust Fund; Proposed Beneficiary: Swimming Canterbury West Coast Incorporated; Settlor (deceased): Pearl Doreen Brown
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 10 March 2020
- Procedural Posture
- Application for Directions Under Trustees Act 1956 and Charitable Trusts Act 1957 / Application for Directions Resolved on the Papers
- Outcome
- Application granted in part; directions issued to trustees to pay liabilities, transfer remaining assets to Swimming Canterbury West Coast Incorporated and to wind up and dissolve the trust; liquidator appointed.
- Legal Topics
- Termination of Charitable Trust, Gift Over, Cy Près Alternative, Winding Up of Trust, Directions to Trustees
Source-derived case record
Summary, issues, holding and outcome
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Parties
J O Turpin
Applicant/trustee
M Morrison
Applicant/trustee
M F Toomey
Applicant/trustee
Attorney-General
Interested Party/respondent
The Doreen Brown Trust Fund
Subject Trust
Swimming Canterbury West Coast Incorporated
Proposed Beneficiary
Pearl Doreen Brown
Settlor (deceased)
Procedural Posture
Application for Directions Under Trustees Act 1956 and Charitable Trusts Act 1957 / Application for Directions Resolved on the Papers
Legal Issues
- 1 Whether trustees may dispose of surplus trust assets to an alternative charity consistent with the settlor's gift over
- 2 Whether a scheme under Part 3 of the Charitable Trusts Act 1957 was viable or required
- 3 Whether the trustees could wind up and dissolve the trust after paying liabilities and transferring surplus
Ratio Decidendi
The court concluded that because the settlor's trust deed provided a gift over and Swimming Canterbury West Coast Incorporated's constitution aligns with the settlor's charitable purpose, the trustees were entitled to pay liabilities, transfer remaining assets to that charity, and thereafter wind up and dissolve the trust; appointment of M F Toomey as liquidator was appropriate.
Court Disposition
Application granted in part; directions issued to trustees to pay liabilities, transfer remaining assets to Swimming Canterbury West Coast Incorporated and to wind up and dissolve the trust; liquidator appointed.
Orders
- Pay all costs, debts and liabilities of the Trust Fund, including costs of and incidental to the originating application for directions, out of the assets of the Trust Fund
- Pay or dispose of all remaining assets of the Trust Fund to or for the benefit of Swimming Canterbury West Coast Incorporated (SCWC)
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