New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Misconduct in administration of trust

Legal area

Court

22 Sept 2011

RMY TRUSTEES (2007) LTD AND HARROP V HARROP HC NWP CIV 2011-443-477

Citation

openlaw-76adb672_1f9f_4188_aef3_c860791c4e1d.pdf
Court

High Court

Evidence, corroborated by documents, established a sufficiently arguable case that the defendant trustee engaged in unauthorised transactions and misuse of trust funds, creating a real risk to trust assets; under s51 Trustee Act 1956 the Court was justified in removing him temporarily and appointing an independent interim trustee to protect the trust pending the substantive hearing.
23 Oct 2009

SCHWASS AND HERITAGE TRUSTEE COMPANY LIMITED V LYTTLE AND CMS TRUSTEES (NO 10) LIMITED AND ANOR HC WN CIV-2008-485-1700

Citation

openlaw-29fff53f_0f0c_4df2_83de_d1702ce17c22.pdf
Court

High Court

The Court found that Mr Lyttle had misconducted himself in the administration of his trusts and that, despite uncertainty as to whether appointment would produce a final resolution, the defaults and apparent attempts to avoid liabilities justified the imposition of an independent trustee under s51 Trustee Act 1956; the plaintiffs were therefore entitled to the order sought subject to identification of a proposed trustee within seven days.