New Zealand Case Law: Decisions & Judgments

Topic

Appointment of replacement trustee

Legal area

Court

7 Jul 2023

CLIENT TRUSTEE SERVICES LIMITED v LAURA MICHELLE KHODAVERDI [2023] NZHC 1772

Citation

[2023] NZHC 1772
Court

High Court

CTSL was removed and the Public Trust appointed because the settlor/trustee Laura was unresponsive rendering the trust unable to function and removal/replacement could not be effected under the deed without court assistance; statutory criteria in s112 and s114 were satisfied; the Public Trust had been served and indicated willingness to accept appointment; the s133 application for directions regarding the Family Court proceedings was adjourned because the replacement trustee's position must be known before binding directions are given.
30 Jun 2022

ESTATE OF ERIWATA [2022] NZHC 1546

Citation

[2022] NZHC 1546
Court

High Court

The executor/trustee’s prolonged failure to distribute the estate, provide full accounts and engage with beneficiaries, combined with non‑participation in proceedings, made removal expedient and desirable; the court will not appoint the applicant given family conflict and practicality but will require identification of an independent qualified replacement and then remove the current executor and appoint that replacement; the breach claim is reserved pending further information from the new executor.
18 Sept 2020

PITT v ESTATE OF MEAD [2020] NZHC 2425

Citation

[2020] NZHC 2425
Court

High Court

Removal was appropriate because Ms Kira had communicated she no longer wished to act, failed to maintain contact, and took no steps to oppose; appointment of Brooke Powell was appropriate because, given the modest residue and candid disclosure of intentions, the risk of distribution without formal renunciation did not justify appointing an independent trustee, although the court would have declined appointment if replacement was likely to act improperly.
6 Jul 2020

DANIEL v CUNDALL [2020] NZHC 1590

Citation

[2020] NZHC 1590
Court

High Court

Because Mr Cundall's persistent refusal to meet or provide information, his hostility toward the co‑trustee, and demonstrated conflicts of interest prevented proper administration and risked harm to beneficiaries, the Court properly exercised s51 and its inherent jurisdiction to remove him and appoint an independent trustee (T G Livingstone), vesting trust assets in the continuing and new trustee to enable effective administration in beneficiaries' interests.
20 Dec 2019

BALLANTYNE v GEARY [2019] NZHC 3493

Citation

[2019] NZHC 3493
Court

High Court

Because the respondent lacked capacity to act as trustee and there was evidence he would not understand or participate, the court, pursuant to Trustee Act 1956 ss 51 and 52 and its inherent jurisdiction, properly removed him as trustee, appointed Allan John Geary as replacement trustee and made a vesting order for the trust property, while dispensing with service and with appointment of a litigation guardian.
7 Mar 2019

GRANT DALE ROBLIN v IAN STUART ROBLIN [2019] NZHC 374

Citation

[2019] NZHC 374
Court

High Court

Because the defendant refused to cooperate in administration, impeded realisation of the estate for 17 months, and unilaterally permitted conduct at the property that prejudiced trust administration, it was expedient under s 51 to remove him as trustee and appoint an independent trustee (Peter J. Fanning) to ensure proper administration.
13 Jun 2017

CAMBRIDGE TRUSTEES LIMITED v BRANDON [2017] NZHC 1280

Citation

[2017] NZHC 1280
Court

High Court

Because the co‑trustee neglected to appoint a replacement and failed to respond to communications, the applicant satisfied the requirements of s46 Trustee Act 1956 and was entitled to be discharged; the Court therefore appointed the Public Trustee as replacement (subject to conditions) and awarded costs to the applicant.
11 Feb 2016

GUTMANN v GUTMANN [2016] NZHC 107

Citation

[2016] NZHC 107
Court

High Court

Medical evidence established that the defendant suffers from severe advanced dementia and is incapable of performing trustee duties; accordingly the Court removed him as trustee, appointed Stephen Michael Gutmann as replacement trustee and ordered vesting of trust assets and the registered land in the plaintiff and Stephen as trustees of the Elbach Trust.
13 Nov 2014

NYSSE v NYSSE [2014] NZHC 2833

Citation

[2014] NZHC 2833
Court

High Court

The defendant's conduct in diverting business and funds, causing financial detriment to the companies owned by the trust and failing to engage with co‑trustee or provide accounts amounted to conduct detrimental to the trust and beneficiaries; accordingly the Court has power under s51 Trustee Act 1956 and its inherent jurisdiction to remove the defendant as trustee, appoint an independent replacement and amend the trust deed to vest appointment/removal powers jointly in the plaintiff and the independent trustee to protect beneficiaries.
3 Nov 2014

LITTLE v LITTLE [2014] NZHC 2714

Citation

[2014] NZHC 2714
Court

High Court

The court removed both named trustees of the Woodside Trust and appointed Howick Trustee DL Limited as sole trustee because removal and appointment were proper under the Trustee Act 1956 and clause 15 of the trust deed, supported by the affidavit of Shane Francis Hussey.