Le Grange and Another v Le Grange Family Trust and Others (7021/2016) [2017] ZAKZPHC 2 (7 February 2017)

Le Grange and Another v Le Grange Family Trust and Others (7021/2016) [2017] ZAKZPHC 2 (7 February 2017)

The court found that the trust deed permitted majority decisions and that the fourth trustee was notified and chose to abstain, thus participating in the decision-making process. The resolutions authorising litigation and instructing attorneys were valid and binding on the trust. The applicants' objections were formal rather than substantive, as the fourth trustee had notice and an opportunity to participate. The court held that the applicants were entitled to enforce the original settlement agreement, as the purported variation agreement was not validly concluded; the third respondent had not signed the variation agreement before the applicants withdrew it, and thus no binding variation...

Citation
[2017] ZAKZPHC 2
Parties
Applicant: Louis Le Grange; Applicant: Beulah Le Grange; Respondent: The Louis and Andre Le Grange Family Trust No. 1562/95/PMB; Respondent: Francois Le Grange Nomino Officio; Respondent: Jacqueline Le Grange Nomino Officio; Respondent: Hendrik Mentz Nomino Officio; Respondent: The Master of the High Court Pietermaritzburg
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
7 February 2017
Case Number
7021/2016
Procedural Posture
Civil Application / Order After Opposed Application and Counter Application
Outcome
Application granted; counter-application dismissed with costs.
Judges
D Pillay
Legal Topics
Trustee Standing, Trust Deed Interpretation, Settlement Agreement Enforcement, Variation Agreement, Fiduciary Duties
Land and Property Civil Procedure Trustee Standing Trust Deed Interpretation Settlement Agreement Enforcement Variation Agreement Fiduciary Duties

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Louis Le Grange

Applicant

Beulah Le Grange

Applicant

The Louis and Andre Le Grange Family Trust No. 1562/95/PMB

Respondent

Francois Le Grange Nomino Officio

Respondent

Jacqueline Le Grange Nomino Officio

Respondent

Hendrik Mentz Nomino Officio

Respondent

The Master of the High Court Pietermaritzburg

Respondent

Procedural Posture

Civil Application / Order After Opposed Application and Counter Application

Legal Issues

  1. 1 Whether the trustees of the first respondent had authority to oppose the application and launch a counter-application.
  2. 2 Whether the resolutions taken by the trustees were valid and binding on the trust.
  3. 3 Whether the applicants are entitled to enforce the settlement agreement for monthly payments.

Ratio Decidendi

The court found that the trust deed permitted majority decisions and that the fourth trustee was notified and chose to abstain, thus participating in the decision-making process. The resolutions authorising litigation and instructing attorneys were valid and binding on the trust. The applicants' objections were formal rather than substantive, as the fourth trustee had notice and an opportunity to participate. The court held that the applicants were entitled to enforce the original settlement agreement, as the purported variation agreement was not validly concluded; the third respondent had not signed the variation agreement before the applicants withdrew it, and thus no binding variation...

Court Disposition

Application granted; counter-application dismissed with costs.

Orders

  • The first respondent is ordered to pay the first and second applicants jointly R15,000.00 per month for living costs from 30 June 2012 until the death of the surviving applicant, with annual escalation of 10% from 31 January 2013.
  • Interest a tempore morae on all late payments: 15.50% per annum from 19 November 2011 to 31 July 2014; 9% per annum from 1 August 2014 to 23 February 2016; 10.25% per annum from 1 March 2016 onwards.