New Zealand Māori Council v Foulkes

The case of New Zealand Māori Council v Foulkes involved a dispute among trustees of the Crown Forestry Rental Trust concerning the management of the Trust and related issues. The applicants, including the New Zealand Māori Council and Sir Edward Taihakurei Durie, sought directions from the Court regarding the Trust's administration. The Court was required to decide on the legal issues concerning the recovery of costs from the Trust assets under the Trustee Act 1956, specifically section 71, and the eligibility of costs incurred by the Māori Appointor and trustees. The Court also had to determine whether the costs incurred were reasonably and properly incurred, and if they should be reimbursed from the Trust funds.

The Court held that the recovery of expenses was a matter for the trustees to decide, but provided directions to assist them. The Court confirmed that the costs incurred by the Māori Appointor, acting jointly as trustees, could be met from the Trust assets. However, the Court found that no costs should be awarded to the non-trustees (NZMC and FOMA) in any other capacity. The Court also confirmed that reasonable costs of trustees could be met from the Trust funds under section 71 of the Trustee Act. The Court emphasized that only properly incurred expenses should be reimbursed, and excessive or unnecessary costs should not be allowed. The Court directed the trustees to determine the claims for reimbursement, in accordance with the principles stated in the judgment.

The Court confirmed the costs orders made previously and directed parties seeking costs to submit detailed claims for reimbursement to the Trust. Trustees were instructed to determine those claims, in accordance with the principles stated in the judgment. The Court reserved the right to apply for further directions if necessary, but noted that such an application would not automatically generate an entitlement to reimbursement or award of further costs.