Kain v Public Trust - [2022] NZSC 65

IN THE SUPREME COURT OF NEW ZEALAND

I TE KŌTI MANA NUI O AOTEAROA

SC 17/2022
[2022] NZSC 65

BETWEEN	JACK KAIN, MOLLY KAIN, RACHEL KAIN, STANLEY KAIN, WOLSEY KAIN, GEORGE COUPER MCHARDY KAIN, ASTA KAIN, MADELINE KAIN, GEORGE PAVEY KAIN, MICHAEL KAIN, RUPERT KAIN, SAMUEL KAIN and MARNIE COUPIE FORCER KAIN Applicants
AND	PUBLIC TRUST First Respondent GEORGINA KAIN, GEORGE CHARLES KAIN, GEORGE HARRY COUPER KAIN, GEORGE MICHAEL KAIN, MARY HUTTON, GEORGIA HUMPHREY, CONSTANCE HUTTON and HARRIET HUTTON Second Respondents GEORGIA HUMPHREY, CONSTANCE HUTTON, HARRIET HUTTON, DAVID WHYTE, KIRSTY MARGUERITE COUPER MASTERSON and ELIZABETH DIANE COUPER FRENDIN Third Respondents

SC 18/2022
BETWEEN	GEORGINA KAIN, GEORGE CHARLES KAIN, GEORGE HARRY COUPER KAIN and GEORGE MICHAEL KAIN Applicants
AND	PUBLIC TRUST First Respondent MARY HUTTON, MARNIE COUPIE FORCER KAIN, JACK KAIN, MOLLY KAIN, RACHEL KAIN, STANLEY KAIN, WOLSEY KAIN, GEORGE COUPER MCHARDY KAIN, ASTA KAIN, MADELINE KAIN, GEORGE PAVEY KAIN, MICHAEL KAIN, RUPERT KAIN, SAMUEL KAIN, GEORGIA HUMPHREY, CONSTANCE HUTTON and HARRIET HUTTON Second Respondents MARNIE COUPIE FORCER KAIN, JACK KAIN, MOLLY KAIN, RACHEL KAIN, STANLEY KAIN, WOLSEY KAIN, GEORGE COUPER MCHARDY KAIN, ASTA KAIN, MADELINE KAIN, GEORGE PAVEY KAIN, MICHAEL KAIN, RUPERT KAIN, SAMUEL KAIN, GEORGIA HUMPHREY, CONSTANCE HUTTON, HARRIET HUTTON, DAVID WHYTE, KIRSTY MARGUERITE COUPER MASTERSON and ELIZABETH DIANE COUPER FRENDIN Third Respondents

Court:	O’Regan, Ellen France and Williams JJ
Counsel:	D A T Chambers QC for Applicants in SC 17/2022, and 2nd to 14th Named Second Respondents and 1st to 13th Named Third Respondents in SC 18/2022 B D Gray QC and A G Holden for First Respondent in SC 17/2022 and SC 18/2022 J W A Johnson and W L Porter for 1st to 4th Named Second Respondents in SC 17/2022 and Applicants in SC 18/2022 T C Weston QC and A V Foote for 5th Named Second Respondent in SC 17/2022 and 1st Named Second Respondent in SC 18/2022 J F Anderson QC for 6th to 8th Named Second Respondents and 1st to 3rd Named Third Respondents in SC 17/2022, and 15th to 17th Named Second Respondents and 14th to 16th Named Third Respondents in SC 18/2022
Judgment:	24 May 2022

JUDGMENT OF THE COURT

AThe applications for leave to appeal in SC 17/2022 and SC 18/2022 are dismissed.

BLeave is reserved for submissions to be filed if costs are in issue.

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REASONS

Introduction

Public Trust sought directions in the High Court under s 66 of the Trustee Act 1956 in respect of two trusts. This was opposed by both sets of current applicants (we will refer to them jointly as the applicants). The High Court largely made the directions sought.[1] The applicants’ appeal to the Court of Appeal against a number of the directions was dismissed except in respect of one direction.[2] The applicants now seek leave to appeal from the decision of the Court of Appeal to this Court.

Background

[1]Public Trust v Kain [2021] NZHC 1000, (2021) 5 NZTR 31-002 (Mander J) [HC judgment].

[2]Kain v Public Trust [2021]…

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 Kain v Public Trust

Details

AGLC: Kain v Public Trust [2022] NZSC 65
Case: [2022] NZSC 65
Decision Date: 24 May 2022

CaseChat Overview and Summary

In Kain v Public Trust, the Supreme Court of New Zealand considered applications for leave to appeal from decisions of the Court of Appeal regarding the administration of two discretionary trusts, the Waitaha Trust and the Middle Road Block Trust. The applicants, who are beneficiaries of these trusts, sought to challenge several directions given by the High Court, which were largely upheld by the Court of Appeal. The key legal issues the Court needed to address were whether the Court of Appeal had erred in certain respects concerning the directions it gave to the trustee, Public Trust.

The Court examined the arguments raised by the applicants. Firstly, the applicants argued that the Court of Appeal should have removed a proviso in a direction that required Public Trust to recognise the principle of equality as per the 1997 Deed. The Court found that this issue turned on specific facts and did not present a question of general or public importance. Secondly, the applicants contended that the Court of Appeal should have required Public Trust to consider what beneficiaries of other trusts in the Couper-Kain Group had received. The Court found that the Court of Appeal's approach was consistent with the law and that the matter did not raise a question of general importance. Thirdly, the applicants challenged the directions concerning the trustee's consideration of the settlor's subsequent wishes. The Court concluded that these issues were also fact-specific and did not merit further appellate consideration at this stage.

Based on its analysis, the Supreme Court held that the criteria for leave to appeal were not met. Consequently, the applications for leave to appeal were dismissed. The Court reserved leave for submissions to be filed if costs were in issue. This outcome effectively upholds the decisions of the Court of Appeal regarding the directions given to the trustee in administering the trusts.

Orders