Broadbent v Broadbent

[2014] NZHC 668

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2013-404-2678 [2014] NZHC 668

UNDER	section 51 of the Trustee Act 1956
IN THE MATTER	of the Broadbent Family Trust
BETWEEN	VICTORIA ROSANNE BROADBENT Plaintiff
AND	JOHN STEPHEN BROADBENT AND VICTORIA ROSANNE BROADBENT, as Trustees of the Broadbent Family Trust Defendants

Hearing:	(On the papers)
Counsel:	DJG Cox and CM Webster for Plaintiff
Judgment:	4 April 2014

JUDGMENT (NO.2) OF BREWER J

Solicitors:           Rennie Cox (Auckland) for Plaintiff

(Copy to first named Defendant in person)

BROADBENT v TRUSTEES OF THE BROADBENT FAMILY TRUST [2014] NZHC 668 [4 April 2014]

Introduction

[1]      The plaintiff has filed a without notice application for directions after my judgment in this matter.1

Background

[2]      In my judgment, I ordered:

(a)      Mr and Mrs Broadbent are to be replaced as trustees of the Trust by a corporate trustee (the new trustee) to be formed and controlled by Christopher Robert Darlow of Auckland, solicitor;

(b)      The appointment of the new trustee, and its replacement of Mr and Mrs Broadbent, shall occur on the date of incorporation of the new trustee; and

(c)      The new trustee is directed to sell both of the Trust’s real properties in such order, and in such manner, as the new trustee determines to be most beneficial to the Trust.

[3]      I am advised by the affidavit of Mr Darlow in support of the request for directions that LINZ has refused to register a transfer of the two titles, both because I did not specify the legal descriptions and because the corporate trustee was not yet formed.2    I am tempted to refer to “excessive bureaucracy”, but there is urgency in this matter because an auction of the Parnell property is scheduled for 8 April 2014.

[4]      Mr Darlow is concerned also that my judgment should have made explicit his right to take his costs from the proceeds of the sale of the properties.

[5]      With one exception, the directions sought do no more than give effect to the orders I made previously.  The exception is at 1(c) of the directions filed with the

application. This reads:

1      Broadbent v Trustees of the Broadbent Family Trust [2014] NZHC 254.

2      Affidavit of Christopher Robert Darlow in Support of Request for Recall and Amendment of

Judgment, and Request for Directions under Rule 11.22 HCR, sworn 31 March 2014.

Shares owned by the Broadbent Family Trust and Flotech Holdings Limited

(In Receivership).

[6]      I suspect that “and” should be “in”.   There was mention at the hearing of shares owned in Flotech Holdings Ltd but it was said that they were worthless.  In any event, my judgment was clear (I thought) that the new corporate trustee (now identified as Ringwood Trustees Ltd) would have vested in it all of the assets of the Broadbent Family Trust.

Decision

[7]      I grant the application for directions as follows:

1.The  following  properties  shall  be  vested  in  Ringwood  Trustees Limited as the corporate trustee replacing Mr and Mrs Broadbent as trustees of the Broadbent Family Trust:

(a)       The property located at 19D Balfour Road, Parnell, being Unit TD Deposited Plan 341195 as described in Certificate of Title 169375;

(b)       The property located at 151F Te Punga Road, Whangapoua, RD2, Coromandel, being Lot 6 Deposited Plan 348816 as described in Certificate of Title CT 200375;

(c)       All  other  assets  owned  by  the  Broadbent  Family  Trust (including shares in any company) shall likewise be vested in Ringwood Trustees Limited.

2.As sole director of Ringwood Trustees Limited, Christopher Darlow shall have the power and authority to give effect to the registration of the properties from John Stephen Broadbent and Victoria Rosanne Broadbent to Ringwood Trustees Limited.

3.Ringwood Trustees Limited is directed to sell the properties in such order, and in such manner, as it determines to be most beneficial to the beneficiaries of the Broadbent Family Trust.

4.The costs of Christopher Darlow and Ringwood Trustees Limited in relation to the formation of Ringwood Trustees Limited, the administration of the Broadbent Family Trust, the sale of the properties and all other activities necessary to give effect to the Orders of the Court in these proceedings shall be met from the net proceeds of sale of the properties.

[8]      Orders may be sealed accordingly.

[9]      Finally, the memorandum of counsel filed with the application referred to difficulties sealing a costs order.   No application has been made in respect of the draft costs order and, in any event, I see no reason to pre-empt the decision of the

Registrar.

Brewer J