Pye v Pye

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2016-404-3271 [2017] NZHC 17

IN THE MATTER
An application for vesting orders under

Section 52 Trustee Act 1956

AND IN THE MATTER

of Part 18 High Court Rules

BETWEEN

GRAHAM COUCH PYE AND PYE FAMILY TRUSTEE LIMITED AS CURRENT TRUSTEES OF THE PYE FAMILY TRUST

Plaintiffs

AND

GRAHAM COUCH PYE AND RUTH ISABELLA PYE AND BM TRUSTEES LIMITED AS FORMER TRUSTEES OF THE PYE FAMILY TRUST

Defendants

On the papers

Appearances:

M Phillipps for Plaintiff

Judgment:

18 January 2017

JUDGMENT OF TOOGOOD J

Solicitors:
Vicki Ammundsen Trust Law Limited

Pye v Pye & Ors [2017] NZHC 17 [18 January 2017]

[1] Graham Couch Pye and his wife Ruth Isabella Pye are the settlors of the Pye Family Trust (the Trust). The discretionary beneficiaries of the Trust and now Mr and Mrs Pye and their daughters Jennifer Ruth McKenzie and Carolyn Gwen Pye.

[2] Although Mrs Pye and a trustee company were the original trustees with Mr Pye, both the trustee company and Mrs Pye have been replaced. The trustees are now Mr Pye and Pye Family Trustee Company Limited.

[3] The changes in trustees were motivated in part by the fact that Mrs Pye is suffering dementia and I am satisfied on the evidence that she no longer has mental capacity.

[4] The Trust has entered into an unconditional agreement for sale of the Manly property with settlement now due to occur on 20 January 2017, so long as vesting orders are made to enable the sale to proceed without requiring Mrs Pye's agreement.

[5] I am satisfied that sale is appropriate in the interests of the beneficiaries in order to assist Mr Pye to meet his own living expenses and the cost of care for his wife who is a resident of the Edmund Hillary Retirement Village hospital wing.

[6] Jennifer and Carolyn consent to the vesting orders. [7] I make the following orders accordingly:
(a) Service of the proceeding on the defendants is dispensed with;

(b)An order is made pursuant to s 52 (1) Trustee Act 1956 vesting the right, title and interest of the defendants Graham Couch Pye, Ruth Isabella Pye and BM Trustees Limited in the property at 47 The Circle, Manly, Whangaparoa with the CFR Identifier NA 14C/682 being Lot 107, Deposited Plan 59177, North Auckland Registry and the property at 3 Mataroa Road, Mt Wellington, Auckland with the CFR Identifier NA 1687/65 being Lot 9, Deposited Plan 45593, North

Auckland Registry, absolutely in the plaintiffs' Graham Couch Pye and Pye Family Trustee Limited as trustees of the Pye Family Trust;

(c) To give effect to the vesting order the Registrar General of Land (Land Information New Zealand) is authorised to record the transfer of the title to the properties at 47 The Circle, Manly, Whangaparoa comprised in Certificate of Title NA 14C/682, and 3 Mataroa Road, Mt Wellington, Auckland comprised in Certificate of Title NA
1687/65, from the defendants to the plaintiffs as registered proprietors.

...................................................

Toogood J

CaseChat Overview and Summary

The High Court of New Zealand, Auckland Registry, heard an application for vesting orders under Section 52 of the Trustee Act 1956 in the case of Pye v Pye. The application was made by Graham Couch Pye and Pye Family Trustee Limited, the current trustees of the Pye Family Trust, against Graham Couch Pye, Ruth Isabella Pye, and BM Trustees Limited, the former trustees of the same trust. The central issue in the case was whether vesting orders should be granted to allow the sale of two properties owned by the Trust, without the consent of Mrs Pye, who was deemed to lack mental capacity. The sale of the properties was considered necessary to meet the living expenses of Mr Pye and the cost of care for his wife, who resided at the Edmund Hillary Retirement Village.

The court had to determine if it was in the best interests of the beneficiaries to proceed with the sale of the properties, despite the lack of consent from one of the former trustees, Mrs Pye, who was deemed to be mentally incapacitated. The court also had to consider the consent of the discretionary beneficiaries of the Trust, Jennifer Ruth McKenzie and Carolyn Gwen Pye, who had given their consent to the vesting orders.

The court concluded that the sale of the properties was in the best interest of the beneficiaries and granted the vesting orders. The court was satisfied that the sale would assist Mr Pye in meeting his living expenses and the cost of care for his wife. Additionally, the court noted that Jennifer and Carolyn had consented to the vesting orders. The court therefore ordered that the right, title, and interest of the defendants in the two properties be vested in the plaintiffs as trustees of the Pye Family Trust. The Registrar General of Land (Land Information New Zealand) was authorised to record the transfer of the title to the properties from the defendants to the plaintiffs as registered proprietors.

The court made several orders, including dispensing with the service of the proceeding on the defendants, vesting the right, title, and interest of the defendants in the two properties with the plaintiffs as trustees of the Pye Family Trust, and authorising the Registrar General of Land to record the transfer of the title to the properties from the defendants to the plaintiffs as registered proprietors. These orders enabled the sale of the properties to proceed without the need for Mrs Pye's consent.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

IN THE MATTER	An application for vesting orders under Section 52 Trustee Act 1956
AND IN THE MATTER	of Part 18 High Court Rules
BETWEEN	GRAHAM COUCH PYE AND PYE FAMILY TRUSTEE LIMITED AS CURRENT TRUSTEES OF THE PYE FAMILY TRUST Plaintiffs
AND	GRAHAM COUCH PYE AND RUTH ISABELLA PYE AND BM TRUSTEES LIMITED AS FORMER TRUSTEES OF THE PYE FAMILY TRUST Defendants

On the papers
Appearances:	M Phillipps for Plaintiff
Judgment:	18 January 2017