J K Morris Family Trust v Morris

[2018] NZHC 2031

IN THE HIGH COURT OF NEW ZEALAND TAURANGA REGISTRY

I TE KŌTI MATUA O AOTEAROA TAURANGA MOANA ROHE

CIV-2018-470-000110

[2018] NZHC 2031

UNDER

Trustee Act 1956 and the High Court’s Inherent Jurisdiction

BETWEEN

J K MORRIS FAMILY TRUST, ALAN RAYMOND HUTCHINGS

Applicants

AND

JOHN KENNETH MORRIS

Respondent

Hearing:	On the papers
Judgment:	10 August 2018

JUDGMENT OF COURTNEY J

This judgment was delivered by Justice Courtney on 10 August 2018 at 4.00 pm

pursuant to R 11.5 of the High Court Rules Registrar / Deputy Registrar Date………………………

HUTCHINGS v MORRIS [2018] NZHC 2031 [10 August 2018]

[1]    John Kenneth Morris and Alan Raymond Hutchings are the trustees of J K Morris Family Trust. As a result of a recent stroke, Mr Morris is no longer able to discharge his obligations as a trustee. Mr Hutchings has found that his other obligations make it very difficult for him to execute his duties as a trustee. Mr Hutchings seeks leave to make an originating application under r 19.5 of the High Court Rules to apply for orders (1) under s 51 of the Trustee Act 1956 removing both himself and Mr Morris as trustees and appointing Shay Marie Morris and Lyon Trustees 2017 Ltd in their place and (2) under s 52 of the Trustee Act vesting the following trust property in the new trustees:

(a)122 Lochhead Rd, Te Puna, contained in identifier SA44C/668;

(b)299,999 shares in Argissentials NZ Ltd;

(c)Funds held in bank accounts in the name of the trust.

[2]    Shay Morris is one of Mr Morris’ four children, all of whom are beneficiaries under the trust. Lyon Trustees 2017 Ltd is an independent trustee, the director of which is Douglas John Lyon. Shay Morris and Douglas Lyon has each sworn an affidavit in support of the application. I am satisfied from those affidavits that Mr Morris is no longer capable of discharging his obligations as a trustee and that, as a result of his other commitments, Mr Hutchings is, likewise, unable to continue acting as a trustee.

[3]    Shay Morris’ three siblings consent to the applications and written consents from each have been filed.

[4]    In the circumstances, it is expedient to appoint new trustees in substitution for them and for the trust property to vest in the new trustees. In these circumstances, I grant the applications and make orders in the terms of the draft order filed.

P Courtney J