RE HADDON AND BOWMAN HC CHCH CIV-2012-409-000841

RE HADDON AND BOWMAN HC CHCH CIV-2012-409-000841

The court directed the trustees to accept the government's CERA offer for the land and to accept the insurer's offer to fund purchase of an existing replacement property (with contemplated resale), because that course was within the trustees' powers under the will, was supported by the litigation guardian, and was demonstrably more financially advantageous to the beneficiaries (replacement option valued about NZD 470,500 versus NZD 319,850, producing an anticipated net gain of at least NZD 100,000).

Citation
openlaw-3a16789b_785e_478a_acdc_22a69783f1f1.pdf
Parties
Trustee/applicant: Andrew Derek Haddon; Trustee/applicant: Katrina Jane Bowman; Beneficiaries/respondents: Infant beneficiaries (four daughters of deceased); Estate of Deceased: Estate of Karyn Teresa Haddon
Court
High Court
Jurisdiction
New Zealand
Judgment Date
1 August 2012
Procedural Posture
Trustee Act 1956 Application for Directions / Hearing and Oral Judgment
Outcome
Court ordered trustees to sell the land to the New Zealand Government via CERA and to accept the insurer's offer to fund purchase of an existing replacement property, with contemplated resale; orders made as per the draft order amended 31 July 2012.
Legal Topics
Trustee Powers, Sale of Trust Property, Court Directions for Trustees, Beneficiaries' Interests, Compulsory Acquisition Offers
Trusts Estate Administration Property Law Insurance Law Public Acquisition/cera Trustee Powers Sale of Trust Property Court Directions for Trustees +2 more

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Parties

Andrew Derek Haddon

Trustee/applicant

Katrina Jane Bowman

Trustee/applicant

Infant beneficiaries (four daughters of deceased)

Beneficiaries/respondents

Estate of Karyn Teresa Haddon

Estate of Deceased

Procedural Posture

Trustee Act 1956 Application for Directions / Hearing and Oral Judgment

Legal Issues

  1. 1 Whether trustees should accept the government's CERA offer for the red‑zoned land and the insurer's offer to fund purchase of a replacement property
  2. 2 Whether the court should direct trustees to proceed with the insurer‑funded replacement purchase and contemplated resale
  3. 3 Whether the proposed course is in the best interests of infant beneficiaries and within trustees' powers

Ratio Decidendi

The court directed the trustees to accept the government's CERA offer for the land and to accept the insurer's offer to fund purchase of an existing replacement property (with contemplated resale), because that course was within the trustees' powers under the will, was supported by the litigation guardian, and was demonstrably more financially advantageous to the beneficiaries (replacement option valued about NZD 470,500 versus NZD 319,850, producing an anticipated net gain of at least NZD 100,000).

Court Disposition

Court ordered trustees to sell the land to the New Zealand Government via CERA and to accept the insurer's offer to fund purchase of an existing replacement property, with contemplated resale; orders made as per the draft order amended 31 July 2012.

Orders

  • Trustees directed to pursue sale of the land to the New Zealand Government via CERA and accept the insurer's offer to fund purchase of an existing home in accordance with the terms of that offer, contemplating a subsequent resale of that property.
  • Orders made in terms of the draft order filed and as amended in Ms Sumner's memorandum of 31 July 2012.