Rangi v Rangi HC Auckland CIV 2006-404-5182

[2007] NZHC 1669

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV 2006-404-005182

BETWEEN  WARREN DEAN RANGI AND VANESSA CAROL PERRY

Plaintiffs

AND  MINACHI RANGI AND DHAMODRAN JERARD

Defendants

Hearing:         26 February 2007

Appearances: M Jordan for plaintiffs on instructions from M Bell

No appearance for defendants

Judgment:      26 February 2007

(ORAL) JUDGMENT OF ANDREWS J

Solicitors:

Corcoran French, Christchurch  Fax [phone]
Copy to:
Minachi Rangi, 25 Bremner Avenue, Mt Roskill, Auckland
Simpson Dowset Mackie, Auckland fax  [phone]

Tetley-Jones Thom Sexton, Auckland  Fax [phone]

WD RANGI AND VC PERRY V M RANGI AND D JERARD HC AK CIV 2006-404-005182  26 February

2007

[1]      The plaintiffs have brought this proceeding seeking orders under s 51 of the

Trustee Act 1956 relating to the trustees of the Kenn and Manachi Family Trust.

[2]      The present trustees are Manachi Rangi and her son Dhamodran Jerard.   The plaintiffs are the son and daughter of Kenn Rangi.  Dhamodran Jerard is Manachi’s son and is therefore the plaintiffs’ step-brother.    The trustees and the plaintiffs are all beneficiaries under the Trust.

[3]      The application was made as a result  of the plaintiffs’ concern as to the actions  of  Manachi  Rangi  as  trustee.      Specifically,  they  were  concerned  that Manachi Rangi was dealing with the property at 25 Bremner Avenue, Mt Roskill, Auckland as if it were her own rather than in the proper form which is that she is one of the trustee owners of the property.

[4]      In particular, she had allowed the title to the property to be subject to a caveat from Broadlands Finance Limited in 2005.   Further, she had placed the property on the   market   for   sale   without   consultation  with  her   co-trustees   or   with   the beneficiaries.

[5]      Further, in an affidavit Mr Rangi said that the mortgage on the property is in arrears.

[6]      There  was  a  settlement   conference  convened   before  Associate  Judge D H Abbott on 22 January 2007.  That conference was attended by Manachi Rangi, Warren Rangi, counsel for the plaintiffs and a person accompanying Manachi Rangi. Judge Abbott’s minute as to the conference makes clear his view that Manachi Rangi lacked understanding as to her position as trustee.  The conference did not achieve any settlement and was adjourned to a further telephone conference to be held on 8

February 2007.

[7]      The defendants Manachi Rangi and Dhamodran Jerard were to file a notice of appearance  giving  an  address  for  service  and  telephone  contact  details  for  the

telephone conference on 8 February 2007.  They failed to do so and the conference proceeded in their absence.

[8]      Judge Abbott set the proceeding down for a formal proof hearing which was scheduled for today.  There has again been no appearance by the defendants.

[9]      Having heard evidence from Warren Rangi and  having reviewed the two affidavits sworn by him filed in this proceeding, I am satisfied it is appropriate for the orders sought to be made.

[10]     The terms of the orders sought are set out in a memorandum of counsel for the plaintiffs dated 22 February 2007, as follows:

a)        That  Manachi  Rangi  be  removed  as  a  Trustee  of  the  Kenn  and

Manachi Family Trust.

b)       That Warren Dean Rangi of Wellington be appointed as Trustee in substitution for Manachi Rangi.

c)        That Dhamodran Jerard shall remain as a Trustee of the Kenn and

Manachi Family Trust.

d)Any consequential order necessary to vest Manachi Rangi’s interest in the property at 25 Bremner Avenue, Mt Roskill, Auckland into the name of Warren Rangi in  his capacity as replacement  Trustee or, alternatively Leave to allow the Applicants to apply to the Court for any further orders that may prove necessary.

[11]     I am happy to make orders a), b) and c) but have asked that the terms of the orders sought in paragraph d) should be provided in draft terms for approval and it is anticipated that this should be provided today.

Costs

[12]     The  plaintiffs  seek  an  order  full  solicitor  client  costs  and  disbursements against the trustees, but to be payable out of the Kenn and Manachi Trust.

[13]     There will be an order for the full solicitor-client costs and disbursements against the trustees but to be payable out of the Kenn and Manachi Trust.

[14]     It is to be noted that Mr Rangi has travelled twice from Wellington to this Court first, for the settlement conference and secondly for this hearing.   It is appropriate that his costs be met.  Costs to be certified by the Registrar.

Addendum

[15]     Following the hearing of the plaintiff’s application I was provided with terms of a draft order reflecting paragraph [10](d) above, as follows:

That any Trust property including the land and buildings  situated at  25

Bremner Avenue being all the land contained and described in Certificate of Title 34A/838 North Auckland Land Registry shall vest jointly in the names of Warren Dean Rangi of Wellington the newly appointed Trustee and Dhamodran Jerard being the Continuing Trustee.

[16]     The plaintiff’s solicitors have been advised that an order in those terms is approved.

Andrews  J