Goo v Wu

[2020] NZHC 1923

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2020-404-645

[2020] NZHC 1923

UNDER

the Trustee Act 1956, the inherent

jurisdiction of the High Court and Part 19 of the High Court Rules

BETWEEN

SING HONG GOO, IENG HONG GOO and

VINCENT HONG-GOO as trustees of the SING AND IENG HONG GOO FAMILY TRUST

Applicants

AND

TONY TUNG LEE WU

Respondent

Hearing:	On the papers
Counsel:	N Geiger for the Applicants
Judgment:	3 August 2020

JUDGMENT OF GAULT J

This judgment was delivered by me on 3 August 2020 at 3:00 pm pursuant to r 11.5 of the High Court Rules 2016.

Registrar/Deputy Registrar

……………………………………

Solicitors / Counsel:
Mr N Geiger, DG Law, Auckland

GOO v WU [2020] NZHC 1923 [3 August 2020]

[1]                 The applicants – Sing Hong Goo, Ieng Hong Goo and Vincent Hong-Goo – seek vesting orders to vest property in the current trustees of the Sing and Ieng Hong Goo Family Trust (the Trust). The current trustees are the three applicants and Jason Hong Goo.

Background

[2]                 The Trust was established on 9 June 2003. Sing and Ieng Hong Goo were the settlors of the Trust. The discretionary beneficiaries of the Trust are:

(a)The primary beneficiaries, consisting of the settlors, the settlors’ five named children (Vincent Hong-Goo, Benjamin Hong Goo, Jason Hong Goo, Alan Hong Goo and Amy Hong Goo), the settlors’ grandchildren, any spouses of the settlors’ children and any other person related to the settlors.

(b)The secondary beneficiaries include any company in which the above primary beneficiaries hold at least 50 per cent shareholding in and any such other person appointed by the settlors before vesting day.

[3]                 The settlors’ grandchildren are between the ages of five months and 12 years’ old.

[4]The final beneficiaries are the settlors and their five named children.

[5]                 The trust properties include Sing  and  Ieng  Hong  Goo’s  family  home  (46A Hutchinsons Road) and commercial properties at 78-82 Manukau Road which are leased to businesses.

[6]                 On 1 July 2020, I granted leave for the proceeding to be commenced by originating application and dispensed with service of the proceeding on the beneficiaries of the Trust.

[7]                 Mr Tony Tung Lee Wu was appointed a trustee under the Trust deed in 2003. He no longer has capacity to act as a Trustee. Initially the applicants sought orders

from this Court removing him as a trustee and replacing him with Jason Hong Goo (as well as orders dispensing with the need for service on Mr Wu and for a litigation guardian to be appointed). In a minute issued on 1 July 2020, I indicated that the preferable course was for the applicants to execute an instrument replacing Mr Wu as a trustee, given the settlors of the trust (Sing and Ieng Hong Goo) have the power to remove trustees under clause 14(a) of the Trust deed. Vincent Hong-Goo has since filed an updating affidavit, with the executed instruments replacing Mr Wu as trustee annexed.1 Jason Hong Goo was appointed in substitution.

[8]                 The applicants seek orders to vest the trust properties in the current trustees. Difficulties have arisen concerning rent reviews and lease renewals in relation to the commercial properties at 78-82 Manukau Road. These matters need to be addressed by trustees. Accordingly, the vesting orders have become an essential requirement in order to manage the commercial properties. As noted, the Hutchinsons Road property is also Sing and Ieng Hong Goo’s family home.

Should the trust property be vested in the applicants?

[9]                 Mr Wu is no longer a trustee. It is appropriate therefore for legal title to follow equitable title. Given the circumstances, and the need for the continuing trustees to be able to deal with the Trust properties in accordance with their duties, I consider it appropriate to vest the properties in the current trustees.

Orders

[10]I make the following orders:

(a)the following Trust properties are vested in Sing Hong Goo, Ieng Hong Goo, Vincent Hong-Goo and Jason Hong Goo:

(i)46A    Hutchinsons    Road,    Bucklands    Beach,    Auckland, Certificate of Title NA40D/486;

1      Specifically, a resolution and a deed of removal of trustees and appointment of a new trustee.

(ii)78–82 Manukau Road, Epsom, Auckland, Certificate of Title NZ764/17;

(b)any ancillary orders necessary to transfer the above lands in the Applicants as Trustees of the Sing and Ieng Hong Goo Family Trust; and

(c)that the costs of and incidental to this proceeding be met by the trustees of the Sing and Ieng Hong Goo Family Trust.

Gault J