4 Dec 2019
BETHELL v PAPANUI PROPERTIES LIMITED [2019] NZHC 3169
- Citation
- [2019] NZHC 3169
- Court
- High Court
The Court held that funds paid by PMCM clients to Arrow for the specific purpose of paying trade contractors were held on an implied express trust for those clients (pass-through/payments as agent), whereas amounts paid to Arrow for its own fees, margin and Purchase Order Suppliers were not trust funds and remain Arrow's assets in liquidation; retentions deducted pre-1 April 2017 that were paid into Arrow's trading account and dissipated (account overdrafts) ceased to exist as trust property, while post-1 April 2017 retentions placed into a separate retentions account are held on trust for th…