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Addleman v Lambie Trustee Ltd

Addleman v Lambie Trustee Ltd

Case [2019] NZCA 480 4 October 2019

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IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA

CA545/2017
[2019] NZCA 480

BETWEEN	PRUDENCE ANNE ADDLEMAN Appellant
AND	LAMBIE TRUSTEE LIMITED Respondent

Hearing:	19 March 2019
Court:	Cooper, Clifford and Gilbert JJ
Counsel:	A S Ross QC and R A Rose for Appellant D A T Chambers QC and I F Williams for Respondent
Judgment:	4 October 2019 at 10 am

JUDGMENT OF THE COURT

AThe application to adduce further evidence is granted.
BThe appeal is allowed.
CThe judgment of the High Court is set aside.
DWithin 30 working days of the date of this judgment the respondent is to provide the appellant with all documents in its possession or power relating to the Lambie Trust in the following categories:
(i)financial statements;
(ii)minutes of meetings; and
(iii) any legal opinions and other advice obtained by the trustees and funded by the Trust.

ELeave is reserved to apply to the High Court for further directions in the case of any disagreement as to any redaction made in the documents provided in accordance with these orders.
FTo the extent any documents in these categories are no longer available, the respondent is to serve on the appellant within the same 30-day period an affidavit from a person having the relevant knowledge explaining what efforts have been made to locate the missing documents and what is thought to have become of them and when.
GThe respondent is to pay the appellant’s costs for a standard appeal on a band A basis and usual disbursements. We certify for second counsel.

____________________________________________________________________

REASONS OF THE COURT

(Given by Gilbert J)

Table of Contents

Introduction [1]

Lambie Trust [2]
Distribution to Mrs Addleman[7]
Mrs Addleman’s requests for Trust documents [8]

Proceedings  [12]
High Court judgment  [16]
Appeal  [18]
Applicable principles  [20]
Did the High Court err in applying these principles?  [24]
           Documents sought  [25]
           Context for and objective of request  [32]
           Nature of Mrs Addleman’s interests  [36]
           Confidentiality  [50]
           Practical difficulty in providing the information  [52]
           Whether the documents sought disclose reasons for trustees’
           decisions  [53]
           Likely impact of disclosure on trustee and other beneficiaries          [54]
           Likely impact of disclosure on settlor and third parties  [58]
           Whether disclosure can be made while protecting confidentiality     [59]
Conclusion  [60]
Result  [61]

Introduction

This is an appeal against a judgment of the High Court refusing an application by a beneficiary for disclosure of trust documents.[1]

Lambie Trust

[1]Addleman v Lambie Trustee Ltd [2017] NZHC 2054 [High Court judgment].

The appellant, Prudence Addleman, and her younger sister, Annette Jamieson, now aged 70 and 66, are the only two people named as both discretionary and final beneficiaries of a trust known as the Lambie Trust (the Trust) established by a Deed of Trust dated 19 March 1990 (Trust Deed). The named settlor was Robert Palmer, their cousin. The original trustees were: their father, Alexander Jamieson; their brother, Anthony Jamieson; Mr Palmer; and Wayne Hanna, an accountant. The respondent, Lambie Trustee Ltd, has been the…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Addleman v Lambie Trustee Ltd

Details

AGLC: Addleman v Lambie Trustee Ltd [2019] NZCA 480
Case: [2019] NZCA 480
Decision Date: 4 October 2019 at 10 am

CaseChat Overview and Summary

Prudence Anne Addleman appeals against a decision of the High Court to refuse her application for disclosure of trust documents. Addleman and her sister Annette Jamieson are the only two named discretionary and final beneficiaries of the Lambie Trust, established by their cousin Robert Palmer in 1990. Lambie Trustee Ltd is the sole trustee of the Trust. Addleman and Jamieson have been estranged for over 20 years. Addleman only became aware of the Trust in 2002 when a distribution of NZD 4.257 million was made to her. Addleman sought comprehensive information about the Trust including copies of all financial statements dating back to its inception. The High Court refused her application in its entirety for several reasons including that there was no suggestion of a breach of trust or fiduciary duty in the administration of the Trust, and there was a real prospect of further intra-familial discord and litigation if disclosure was ordered. Addleman contends on appeal that the High Court misapplied the principles governing these types of applications and that there was no sound evidential foundation for the Judge's factual findings. The Court of Appeal considers the appeal by examining each of the Judge's reasons for declining to order any disclosure. The Court of Appeal is satisfied that Addleman has shown she has a legitimate basis for enquiring further into the administration of the Trust. It is contrary to the express terms of the Trust Deed for the trustees to treat Jamieson as the primary beneficiary and Addleman as nothing more than a backstop beneficiary whose interests need not be considered while Jamieson is alive. The Trust cannot be regarded as a "sole purpose trust" such that the trustees' obligations under the clear terms of the Trust Deed are modified or displaced. The course most consistent with the proper administration of the Trust and the interests of the beneficiaries overall is to order disclosure of these basic trust records. The application to adduce further evidence is granted. The appeal is allowed. The judgment of the High Court is set aside. Within 30 working days of the date of this judgment, the respondent is to provide the appellant with all documents in its possession or power relating to the Lambie Trust in the following categories: (a) financial statements; (b) minutes of meetings; and (c) any legal opinions and other advice obtained by the trustees and funded by the Trust. To the extent any documents in these categories are no longer available, the respondent is to serve on the appellant within the same 30-day period an affidavit from a person having the relevant knowledge explaining what efforts have been made to locate the missing documents and what is thought to have become of them and when. The respondent is to pay the appellant’s costs for a standard appeal on a band A basis and usual disbursements.

Orders