Healthcare Otago Charitable Trust - [2024] NZHC 1761

IN THE HIGH COURT OF NEW ZEALAND DUNEDIN REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTEPOTI ROHE

CIV-2024-412-46

[2024] NZHC 1761

BETWEEN
The Trustees of THE HEALTHCARE OTAGO CHARITABLE TRUST

Applicants

Hearing: 19 June 2024

Appearances:

R J M Sim for Applicant

Judgment:

2 July 2024

JUDGMENT OF DUNNINGHAM J

This judgment was delivered by me on 2 July 2024 at 9.30 am, pursuant to r 11.5 of the High Court Rules

Registrar/Deputy Registrar Date:

RE THE HEALTHCARE OTAGO CHARITABLE TRUST [2024] NZHC 1761 [1 JULY 2024]

Introduction

[1] This is an application by the trustees of the Healthcare Otago Charitable Trust (HCO Trust) under ss 32 and 33 of the Charitable Trusts Act 1957 (the Act), to vary the purposes and mode of administration of the General Medical Staff Fund Trust (GMSF Trust).

Background

[2] The background to the GMSF Trust is outlined in the affidavit of Paul Moodie, the Chair of Trustees of the HCO Trust. He explains that the terms of the GMSF Trust appear to have been first formalised in a declaration of trust dated 18 December 1940. However, that declaration states that the fund had been in existence “for many years past”.

[3] The declaration of trust for the GMSF Trust vested property in the trustees for the following purposes:

(i)in or towards any purpose to further educational facilities for students doing clinical work in the Dunedin Hospital or any other institution under the control of the Otago Hospitable Board;
(ii)in or towards the purchase or acquisition of any apparatus appliances or instruments that may be required for the education of students at the Dunedin Hospital or any other institution under the control of the Otago Hospital Board;
(iii)in or towards any other general purpose calculated to improve the working facilities of the Visiting Staff of the Otago Hospital Board.

[4] The declaration appointed the holders of the following positions as the trustees of the GMSF Trust:

(a)the Chairman of the Otago Hospital Board;

(b)the Chairman of the Finance Committee of the University of Otago; and

(c)the Chairman of the visiting staff of the Otago Hospital Board.

[5] On 23 November 1944 the above trustees and the Otago Hospital Board executed a deed and declaration of a Trust which provided for the GMSF Trust fund to be vested in the Otago Hospital Board to avoid the need to transfer GMSF Trust assets each time the holders of the trustee positions changed.

[6]Clause 3 of that deed and declaration of trust provided the following:

It is hereby agreed and declared that the Board shall hold the Fund and the securities and other assets comprising or representing the same and any other moneys from time to time accruing to the Fund for and on behalf of the Trustees and shall from time to time apply the same at the direction of the Trustees in manner provided for by clause 4 of the said recited Declaration of Trust.

[7] From 1944 onwards, the Otago Hospital Board and its…

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.

Keep reading for free

Create a free CaseChat account to read Healthcare Otago Charitable Trust and more:

Read every judgment in full
Ask AI and get answers linked to paragraphs
See how each paragraph was cited in later cases
Download judgments as PDF or Word

Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details

Case: [2024] NZHC 1761
Decision Date: 2 July 2024

CaseChat Overview and Summary

The case before the High Court of New Zealand involved an application by the trustees of the Healthcare Otago Charitable Trust (HCO Trust) to modify the purposes and administration of the General Medical Staff Fund Trust (GMSF Trust). The HCO Trust sought to update the charitable purposes of the GMSF Trust, which had become impractical, and to streamline its administration by integrating it fully with the HCO Trust. The GMSF Trust, originally established in 1940, was intended to support educational facilities and opportunities for medical students and junior medical officers in public health institutions in Otago. However, the original purposes had become outdated due to changes in the healthcare and educational landscape.

The court had to determine whether the proposed amendments to the purposes and administration of the GMSF Trust were permissible under the Charitable Trusts Act 1957. The court found that the existing purposes of the GMSF Trust were charitable and that the proposed changes would still serve charitable ends by providing educational opportunities and equipment for medical students and junior medical officers. Furthermore, the court concluded that the proposed administrative changes, which involved transferring the GMSF Trust's assets to the HCO Trust, would facilitate the administration of the trust and ensure its funds could be used as intended. The court also addressed potential concerns about the broader investment powers of the HCO Trust and directed that the winding-up clause of the HCO Trust deed would not apply to the GMSF Trust fund.

In light of these findings, the court approved the proposed changes to the purposes and administration of the GMSF Trust. The court ordered that the GMSF Trust's purposes be amended to support educational opportunities and equipment for medical students and junior medical officers in Otago's public health institutions. Additionally, the court directed that the assets of the GMSF Trust be transferred to the HCO Trust, which would hold them as a separate fund, subject to consultation with representatives of the general medical staff. The court also provided that if the GMSF Trust's purposes could no longer be met, a separate application would be required under the Charitable Trusts Act 1957 for directions regarding the trust fund.

Orders