New Zealand Case Law: Decisions & Judgments

Topic

Self-dealing

Legal area

Court

29 Sept 2023

MCLAUGHLIN v MCLAUGHLIN [2023] NZCA 473

Citation

[2023] NZCA 473
Court

Court of Appeal

On the facts the settlors intended the subdivision to include the neighbouring land and pre-selected John to lead the project; his status as adjoining landowner was implicitly authorised by the settlors, and clause 13 when read in context authorised payment to a trustee engaged in a relevant business given John's prior commercial experience; trustees excluded John from conflicted decisions and obtained independent advice, fees were reasonable and market-supported, so no account of profits was ordered; costs award upheld as increased (30% uplift) but the High Court's 20% reduction was quashed.
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.
19 Nov 2020

PERCY v PERCY [2020] NZHC 3537

Citation

[2020] NZHC 3537
Court

High Court

The Court ordered joinder of the newly appointed trustees because their presence was necessary to adjudicate and settle all questions about removal and appointment of trustees and the administration of the trust since they assumed office in June 2020; the Court refused the applicants' request for separate pre-trial determination of the two preliminary questions because the issues were factually contested, required full evidence and cross-examination, posed significant risks of delay, duplication, appeal and estoppel, and were better resolved at the substantive trial.
3 Apr 2020

TILLEY v TILLEY [2020] NZHC 693

Citation

[2020] NZHC 693
Court

High Court

The court extended the freezing order over the $882,500 sale proceeds to prevent dissipation but permitted deduction and payment of legitimate sale-related costs (conveyancing, agents' commission, reasonable marketing expenses), outstanding rest home fees on production of invoices, and the trustees' solicitor's costs to defend the proceedings; other claimed payments to trustees or their partner required proper invoices or agreement and may be the subject of further application.
29 Jan 2018

SUNDE v SUNDE [2018] NZHC 2788

Citation

[2018] NZHC 2788
Court

High Court

Although there was arguable merit to the contention that the attorney's demand may have breached ss97A and 107 PPPRA, such illegality cannot be used as an arguable defence to defeat summary judgment in this context; the proper course is to treat the power's exercise as valid until set aside under s103 PPPRA. However, the court exercised its residual discretion because the dispute is an exceptional, complex family matter and adjourned the summary judgment application to allow a s103 PPPRA challenge and mediation rather than enter judgment immediately.
13 Mar 2017

STAITE v KUSABS [2017] NZHC 416

Citation

[2017] NZHC 416
Court

High Court

Court found trustee E Moke breached fiduciary duty of loyalty by acting on both sides of the Tumunui lease negotiations; Tumunui Trust had knowledge of his dual role; statutory limitation did not bar relief because breach amounted to equitable fraud under Limitation Act s21(1); automatic rescission inappropriate but equitable rectification was ordered to remove the clause allowing deduction of improvements by predecessors (since 1961) so rent reviews exclude predecessors' improvements; boundary and easement relief reserved for Māori Land Court and Registrar processes; easement repair/maintena…
7 Mar 2014

WOODWARD v SMITH [2014] NZHC 407

Citation

[2014] 3 NZLR 525
Court

High Court

The proceedings are hostile trust litigation falling within Buckton category 3; exceptional circumstances necessary to justify an immunity prospective costs order were not established (despite the plaintiff's counsel concluding the case has strong prospects); accordingly the PCO application (immunity) is dismissed and usual costs rules remain for the trial Judge to determine.
14 Dec 2012

PETER DANIEL STAITE, JEAN TANIRAU-CARSTON, DEBORAH PAKAU, LEONIE REI NICHOLLS AND BRUCE ANDERSON BAMBER V ANDREW KUSABS, DONALD BENNETT, JULIAN KEPA AND WILLIAM WAKA AS TRUSTEES OF THE TUMUNUI LANDS TRUST HC ROT CIV 2009-463-000888

Citation

openlaw-e0cff344_7406_4d7a_ac7e_52ace6cb7034.pdf
Court

High Court

Granted leave to file the amended statement of claim because plaintiffs provided a reasonable explanation for the delay (change of counsel and recent discovery of documents), the amendments concern the same core factual matrix, no trial date was fixed so defendants would not be prejudiced, and issues of limitation, particulars and strike-out are reserved for later determination.
22 Dec 2008

HENRY BERNARD CHELLEW V KATHLEEN GLORIA EXCELL AND HENRY BERNARD CHELLEW AS TRUSTEES OF THE ESTATE OF HAROLD RAYMOND CARRINGTON HC AK CIV 2008-404-302

Citation

openlaw-5a8da89e_bed4_45e9_85a0_0383f70fa331.pdf
Court

High Court

The sale of the trustees' half share to a co-trustee breached the self-dealing rule and, absent court consent or beneficiary assent or an express power in the will, is voidable; clause 5(b) did not authorise the trustees to exchange the estate's land interest for a mortgage; accordingly the sale was set aside in part and the parties' beneficial interests adjusted to reflect agreed contribution for improvements (trustees hold 185/405 share), with transfer and mortgage discharge ordered.