New Zealand Case Law: Decisions & Judgments

Topic

Appointment of trustees

Legal area

Court

24 Aug 2023

RE THE JUBILEE CRIPPLED CHILDREN FOUNDATION TRUST BOARD [2023] NZHC 2318

Citation

[2023] NZHC 2318
Court

High Court

The Court has jurisdiction under s130 of the Trusts Act to vary trustees' appointment powers; the proposed variation vesting appointment power in the trustees is necessary and desirable for proper management, does not alter beneficiary interests or involve distribution, and interested persons were afforded an opportunity to be heard (advertised on the trust website); the Attorney-General does not oppose the application, therefore clause 6 is varied as proposed.
19 Dec 2022

AKSINYA ENTERPRISES LIMITED v BHAGIRATH [2022] NZHC 3526

Citation

[2022] NZHC 3526
Court

High Court

The court removed the incapacitated trustee based on reliable psychiatric evidence that he lacked capacity and was unlikely to regain it, and removed inactive trustees who failed to protect trust assets; exercising the court's inherent jurisdiction and ss112/114 Trusts Act 2019 it appointed two independent trustees (Gaynor McLean and Gulab (George) Kanji), vested trust assets in them and granted indemnity protections to enable proper administration and to protect beneficiaries' interests.
7 Dec 2022

LEGLER v FORMANNOIJ [2022] NZCA 607

Citation

[2022] NZCA 607
Court

Court of Appeal

Majority dismissed the appeal because appellants failed to prove on the subjective test that Maria exercised the power to appoint KTL for an improper purpose; the Trust Deed permitted appointment of a corporate sole trustee, Maria had sought and acted on legal advice and evidence did not establish that at the time of appointment she intended to prefer herself or evade the deed's limits.
27 Apr 2022

MASON v TRIEZENBERG [2022] NZCA 138

Citation

[2022] NZCA 138
Court

Court of Appeal

Clause 15 of Mamari 1 did not constitute an arbitration agreement ousting Court jurisdiction; the 11 March 2018 deeds purporting to remove and appoint trustees were invalid because the power of appointment/removal resided in the joint settlors (and the deed specified alternatives) and s 43 did not permit unilateral action by one living settlor; given appellant's sustained hostility, incapacity to act impartially and persistent interference with trust administration, the Court properly exercised its supervisory jurisdiction to remove him as trustee of both trusts to protect beneficiaries and t…
17 Feb 2022

MOLLY RUBY v EILEEN RUBY, A B, C D, E F in their capacity as trustees of the A Ruby Trust [2022] NZHC 282

Citation

[2022] NZHC 282
Court

High Court

The Court exercised its statutory and inherent jurisdiction to approve the three variations because they were necessary and desirable for proper management and administration of the A Ruby Trust, facilitated a full and final family settlement, did not extinguish any vested beneficial interest, complied with the mandatory considerations in ss124 and 125 and the principles in s4, and therefore the specific variation orders sought were appropriate and were made on 17 February 2022.
19 Nov 2021

RE THE PAGEL FAMILY HOME TRUST [2021] NZHC 3142

Citation

[2021] NZHC 3142
Court

High Court

Given credible medical evidence of incapacity affecting the validity of a trustee's resignation and appointment, the consent of the co‑trustee and primary beneficiaries, and the transitional operation of the Trusts Act 2019 which requires the matter be dealt with under the Trustee Act 1956, the court will exercise its statutory and equitable jurisdiction to remove the incapacitated and resigning trustees, confirm and appoint the replacement trustees, and vest the trust property in them, permitting the application to proceed without service or a litigation guardian where appropriate.
11 Nov 2021

ALEXANDER v ALEXANDER [2021] NZHC 3056

Citation

[2021] NZHC 3056
Court

High Court

Trustees are entitled to indemnity from trust assets for legal costs under Trusts Act s81 and Trustee Act s38(2) only to the extent the costs were reasonably and properly incurred; where costs were partly unnecessary or pursued without regard to all beneficiaries the court must apportion liability between the trust and the trustees personally. Applying that standard the court apportioned specified percentages of various invoices to the trust and the trustees and removed the current trustees, appointing Perpetual Trust Ltd as replacement trustee; the court further ordered 25% of the applicant'…
9 Nov 2021

ROSINGER v SACHS [2021] NZHC 3022

Citation

[2021] NZHC 3022
Court

High Court

Because the respondent demonstrated incapacity and unwillingness to administer the estate, causing undue delay, risk to estate and Trust property, and compromising beneficiaries, the Court exercised its discretion under s 6 Administration Act 1969 to bypass him and grant letters of administration and probate to the applicant and to solicitor Leigh Denise Judd; leave to commence by originating application was granted and costs ordered payable from the estate.
2 Jun 2021

LEGLER v FORMANNOIJ [2021] NZHC 1271

Citation

(2021) 5 NZTR 31
Court

High Court

The Kaahu deed expressly permitted a single corporate trustee and contained clause 27.2(c) allowing a corporate trustee to exercise powers even if it directly or indirectly benefited a beneficiary-director; the evidential matrix showed the appointor acted in good faith, sought an independent trustee, obtained legal advice, and did not appoint the corporate trustee for an improper purpose, therefore the appointment was not a fraud on a power and the claim fails.
8 Oct 2020

JOHN READY v THE CHRISTIAN CHURCH COMMUNITY TRUST (Gloriavale) [2020] NZHC 2638

Citation

[2020] NZHC 2638
Court

High Court

The Court directed ordinary service on all defendants and that the proceedings be served on the Attorney‑General pursuant to s 60(2) Charitable Trusts Act 1957; it appointed nominated counsel from Wynn Williams to represent potential beneficiary groups on an interim basis; it approved specified notice and publication measures to bring the proceedings to members' attention; it directed affidavit no 2 (identifying alleged victims) not be served or searched until further order; and reserved further directions and contested issues (including payment of counsel) for hearing on notice.