PAULINE JANICE HARRISON v ADRIENNE HARRISON [2019] NZHC 3474

PAULINE JANICE HARRISON v ADRIENNE HARRISON [2019] NZHC 3474

The r7.51 claim was dismissed because the claimant failed to prove fraud or improper procurement of the interlocutory orders; the Court found no evidence of trustees' fraud or improper dealing, granted trustees' application under s66 to wind up the Valerie Geard Trust, approved distribution of residue in three equal parts after payment of expenses (subject to modification regarding ChildFund), set a latest vesting day (no later than 3 April 2020) with leave to apply for extension, and ordered costs adjustments by deducting 2B costs from Pauline Harrison's share and reallocating half to the other beneficiaries.

Citation
[2019] NZHC 3474
Parties
Plaintiff/respondent: Pauline Janice Harrison; First Defendant/applicant (trustee): Adrienne Harrison; Second Defendant/applicant (trustee): Graeme Ross Harrison; Discretionary Beneficiary: ChildFund New Zealand Limited; Trust (subject Matter): The Valerie Geard Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 December 2019
Procedural Posture
Trust Litigation; Application for Directions Under S66 Trustee Act and Rescission Under R7.51 High Court Rules / Judgment (trial on Consolidated Proceedings)
Outcome
Claim under r7.51 dismissed; trustees' s66 application granted in part; trust to be wound up and residue distributed with specified modifications; costs orders made and mechanism ordered to protect trust estate
Legal Topics
Winding Up of Trust, Directions Under Trustee Act S66, Rescission of Orders for Fraud (r7.51), Security for Costs, Remedies Against Trustees, Allocation of Costs on Distribution
Trusts Equity Civil Procedure Costs Inherent Jurisdiction of High Court Winding Up of Trust Directions Under Trustee Act S66 Rescission of Orders for Fraud (r7.51) +3 more

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Parties

Pauline Janice Harrison

Plaintiff/respondent

Adrienne Harrison

First Defendant/applicant (trustee)

Graeme Ross Harrison

Second Defendant/applicant (trustee)

ChildFund New Zealand Limited

Discretionary Beneficiary

The Valerie Geard Trust

Trust (subject Matter)

Procedural Posture

Trust Litigation; Application for Directions Under S66 Trustee Act and Rescission Under R7.51 High Court Rules / Judgment (trial on Consolidated Proceedings)

Legal Issues

  1. 1 Whether interlocutory orders made by Toogood J were fraudulently or improperly obtained under r7.51 High Court Rules
  2. 2 Whether trustees acted fraudulently or improperly in handling trust assets
  3. 3 Whether the Court should give directions under s66 Trustee Act to wind up the Valerie Geard Trust and approve distributions

Ratio Decidendi

The r7.51 claim was dismissed because the claimant failed to prove fraud or improper procurement of the interlocutory orders; the Court found no evidence of trustees' fraud or improper dealing, granted trustees' application under s66 to wind up the Valerie Geard Trust, approved distribution of residue in three equal parts after payment of expenses (subject to modification regarding ChildFund), set a latest vesting day (no later than 3 April 2020) with leave to apply for extension, and ordered costs adjustments by deducting 2B costs from Pauline Harrison's share and reallocating half to the other beneficiaries.

Court Disposition

Claim under r7.51 dismissed; trustees' s66 application granted in part; trust to be wound up and residue distributed with specified modifications; costs orders made and mechanism ordered to protect trust estate

Orders

  • The r7.51 claim by Pauline Janice Harrison is dismissed.
  • The Court approves trustees' proposal to wind up the Valerie Geard Trust and directs the trustees to declare a vesting day by deed and distribute the residue after payment of trust expenses.