New Zealand Case Law: Decisions & Judgments

Topic

Limitation of trustee liability

Legal area

Court

6 May 2016

SHELLEY MARIE THOMPSON AND RANGITAUIRA WAYNE DAVIS v DONALD BRADLEY AND NAPIER INDEPENDENT TRUSTEES LIMITED [2016] NZHC 922

Citation

[2016] NZHC 922
Court

High Court

The Deed plainly recorded an on‑demand loan; defendants failed to establish a seriously arguable case for rectification or a collateral oral agreement preventing demand; summary judgment was therefore appropriate; judgment is to be entered against the defendants in their capacities as trustees and enforcement is limited to trust assets under clause 6; defendants must execute a registerable mortgage and client authority and the Registrar may be ordered to sign if they fail to comply.
4 Apr 2013

GILLESPIE V GUEST HC AK CIV-2011-404-1629

Citation

openlaw-bc6d81d5_a217_4924_ac1a_8f6156559ecf.pdf
Court

High Court

Defendant failed to establish as a matter of law and on uncontested facts that he was a trustee entitled to rely conclusively on the trust deed's limitation and indemnity clauses and that the claims necessarily fall outside the irreducible core; factual disputes (appointment, capacity in which defendant acted) and the narrow construction of exclusion clauses mean the proceeding is not bound to fail and strike-out must be dismissed; plaintiffs given leave to reply and pursue further discovery.
24 May 2011

NORTH HARBOUR TRUSTEE CO LTD V LAURIE COLLINS MARINE GROUP LTD (IN LIQUIDATION) HC AK CIV-2010-404-8494

Citation

openlaw-b2032dab_0976_4955_8883_171607eb1f7d.pdf
Court

High Court

The applicant demonstrated an arguable defence because there was insufficient evidence that it had knowledge of or ratified the transfers as advances from the respondent; therefore a genuine and substantial dispute as to the debt existed and the statutory demand must be set aside (stayed).
15 Dec 2010

FRIMLEY ESTATE LIMITED V STONEWALL HOMES LIMITED AND ANOR HC NAP CIV-2009-441-237

Citation

openlaw-c3afc40b_f16a_4c80_b9e7_8b8d7ec36b1f.pdf
Court

High Court

The limitation clause was to be construed to fix the trustee's limited liability by reference to the value of trust assets at the date the Agreement became unconditional (31 August 2007); the payments to beneficiaries in 2008/09 were in substance advances not distributions and therefore the trust had sufficient assets at that date; accordingly clause 14.1(2) did not operate to reduce SHL's final liability and summary judgment was granted to FEL for the full claimed loss of $521,226.00 against SHL.
4 May 2009

UDC FINANCE LIMITED - DM JACQUES HC WN CIV 2008-485-2521

Citation

openlaw-86bd4a05_74c6_4d29_a67f_2e3c94d7c611.pdf
Court

High Court

The trustee was properly held personally liable because the creditor was not a party to the trust deed and the deed’s limitation clause does not protect trustees against third party creditors; the creditor had a final unsatisfied judgment against the debtor and the statutory criteria in Insolvency Act 2006 ss 13 and 17 for an act of bankruptcy were met; the debtor had no viable cross-claim, so the bankruptcy notice stood and the application to set it aside failed.

New Zealand Case Law

SHELLEY MARIE THOMPSON AND RANGITAUIRA WAYNE DAVIS v DONALD BRADLEY AND NAPIER INDEPENDENT TRUSTEES LIMITED [2016] NZHC 922

GILLESPIE V GUEST HC AK CIV-2011-404-1629

NORTH HARBOUR TRUSTEE CO LTD V LAURIE COLLINS MARINE GROUP LTD (IN LIQUIDATION) HC AK CIV-2010-404-8494

FRIMLEY ESTATE LIMITED V STONEWALL HOMES LIMITED AND ANOR HC NAP CIV-2009-441-237

UDC FINANCE LIMITED - DM JACQUES HC WN CIV 2008-485-2521