New Zealand Case Law: Decisions & Judgments

Topic

Executor indemnity

Legal area

Court

15 Nov 2023

09514997-6038-4397-80d7-851131464c0c.pdf

Citation

openlaw-f26dfd92_3628_4e60_a31f_2c6da14bc036.pdf
Court

High Court

Tracey's conduct exhibited unreasonableness in continuing her defence after receiving corroborative evidence (Kay's affidavit) but did not meet the threshold for indemnity costs post 21 March 2023; accordingly the court awarded costs on a schedule 2B basis with a 20% uplift to the preparation and hearing steps, awarded Oaklane $17,447 and Kathryn $11,233, and held Tracey may access executor indemnity for steps on or before 21 March 2023 but must personally bear costs after that date.
19 Aug 2022

SHIN v CONNOLLY [2022] NZHC 2065

Citation

[2022] NZHC 2065
Court

High Court

The executor acted reasonably in defending the claim and in bringing the summary judgment application; the estate must reimburse the full costs of $38,830 as indemnity for reasonable estate administration expenses; of that indemnity 90% ($34,947) is charged against the plaintiff's fixed share of the estate and deducted from sale proceeds of Lot 1, with the balance to be borne by the residuary estate.
27 Oct 2020

KELLERMAN v KELLERMAN-THORNTON [2020] NZHC 2804

Citation

[2020] NZHC 2804
Court

High Court

Applicant awarded costs on a 2B basis as the successful party; no uplift awarded because respondent's rejection of offers did not meet the threshold for unreasonable conduct justifying uplift; respondent not entitled to be indemnified from estate assets for legal costs of resisting the applicant's claims because she had charged unreasonable expenses to the estate, provided incomplete/misleading disclosures and was conflicted, making her removal justified; respondent ordered to meet costs of this costs application.
3 Sept 2019

KINNEY v PARDINGTON [2019] NZHC 2196

Citation

[2019] NZHC 2196
Court

High Court

Plaintiff was successful on the substantive Family Protection claim (awarded 70% of the net estate) and is entitled to party costs; costs are to be awarded on a schedule 2B basis (no uplift), payable from the estate; most administration costs are recoverable from the estate but 20% of executors' post-August 2016 costs (amounting to $9,580.00) are disallowed against the estate and are to be borne personally by the executors due to unreasonable delay/disclosure conduct.
17 Oct 2018

PRATLEY v COURTENEY [2018] NZCA 436

Citation

[2017] NZAR 1787
Court

Court of Appeal

The Court held the claim in the District Court was a third‑party claim (not a beneficiaries dispute), the appointed independent executor acted reasonably in defending the claim on the legal advice available and given the time constraints, and therefore he is entitled to be indemnified from estate assets for the reasonable costs incurred in that defence.
21 Dec 2017

COURTENEY v PRATLEY [2017] NZHC 3285

Citation

[2017] NZHC 3285
Court

High Court

Pratley's defence of the $36,000 District Court claim was not necessary or reasonable in the circumstances; therefore he is not entitled to be indemnified from the New Zealand-based assets of the estate for costs and expenses incurred in defending that District Court claim. Factors: existing acrimony between beneficiaries, small claim amount making litigation disproportionate, former trustee's conflict of interest and choice to step away, erosion of estate by litigation costs, and availability of court directions/Beddoe protection.

New Zealand Case Law

09514997-6038-4397-80d7-851131464c0c.pdf

SHIN v CONNOLLY [2022] NZHC 2065

KELLERMAN v KELLERMAN-THORNTON [2020] NZHC 2804

KINNEY v PARDINGTON [2019] NZHC 2196

PRATLEY v COURTENEY [2018] NZCA 436

COURTENEY v PRATLEY [2017] NZHC 3285