Reed v Reed

Case [2017] NZHC 3030


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2017-404-2877 [2017] NZHC 3030

UNDER section 52 Trustee Act 1956

IN THE MATTER

of an application to vest land in respect of
The TRF Trust

BETWEEN

OLIVE PATRICIA REED, PETER CARL NEUMEGEN AND SARAH HILLARY CAMMICK

Applicants

AND

GRAEME HAMILTON REED Respondent

Hearing: (On the papers)

Counsel:

R O Parmenter for Applicants

Judgment:

7 December 2017

JUDGMENT OF BREWER J

REED & ORS v REED [2017] NZHC 3030 [7 December 2017]

Solicitors:

Daniel Overton & Goulding (Auckland) for Applicants

[1]      The applicants apply without notice for leave to proceed by way of originating application and for related orders, including an order to vest land in the applicants as trustees of The TRF Trust (the Trust).

[2]      The respondent is Mr Graeme Hamilton Reed.  He was formerly a trustee of the Trust until he was replaced by Sarah Hillary Cammick, one of his daughters. The reason Mr Reed was replaced as a trustee is that he is mentally incapable through a form of dementia.  According to the affidavit of his wife, Mrs Olive Patricia Reed,

Mr Reed is now also gravely ill physically and is in hospital.  I infer he is unlikely to ever be released.

[3]      Having read the affidavits of Mrs Reed and of Peter Carl Neumegen, another trustee, I am satisfied that I should make the orders sought even though this will streamline or truncate the usual procedure.  The only effect of the orders will be to remove from the title to property owned by the applicants subject to their Trust, a person who is no longer a trustee and who has no ability to take part in the proceeding. I am satisfied also that no beneficiary of the Trust has an interest which requires them to be offered the chance to participate in this application.   Their positions as beneficiaries will be unchanged.

[4]      Accordingly:

(a)Leave is granted for the applicants to commence this proceeding by way of an originating application to vest land in the applicants as trustees.

(b)I dispense with service of the originating application on any person, including the respondent.

(c)The respondent, an incapacitated person, need not be represented by a litigation guardian.

(d)      The application to vest land is granted.

(e)The land to be vested in the applicants in their capacity as trustees of the Trust is an estate in fee simple comprising 2426 square metres and being lots 4 and 5 DP 60220 and the land in Identifier 116855 (North Auckland Registry).

[5]      The applicants may seal the vesting order as above.

[6]      I make no order for costs.

Brewer J

Details
AGLC
Reed v Reed [2017] NZHC 3030
Case
[2017] NZHC 3030
Decision Date

CaseChat Overview and Summary

In the High Court of New Zealand, the case of Reed and Others versus Reed involves an application for leave to proceed by way of an originating application, along with related orders, to vest land in the applicants as trustees of The TRF Trust. The applicants, Olive Patricia Reed, Peter Carl Neumegen, and Sarah Hillary Cammick, seek these orders as they aim to streamline or truncate the usual procedure. The respondent, Graeme Hamilton Reed, was formerly a trustee of the Trust but was replaced due to his mental incapacity caused by dementia, and his wife's affidavit states that he is now gravely ill physically and unlikely to ever be released from the hospital.

The primary legal issue in this case revolves around the applicants' request to proceed with an originating application and related orders to vest land in the applicants as trustees of The TRF Trust, and whether this can be done without notice and without the respondent being represented by a litigation guardian. Additionally, the court must determine if the positions of the beneficiaries of the Trust will be affected by these orders.

In delivering the judgment, Justice Brewer found that the applicants should be granted leave to commence the proceeding by way of an originating application to vest land in the applicants as trustees. The court was satisfied that no beneficiary of the Trust has an interest which requires them to be offered the chance to participate in this application, and their positions as beneficiaries will remain unchanged. Consequently, the court granted the applicants leave to commence the proceeding, dispensed with service of the originating application on any person, and ruled that the respondent, an incapacitated person, need not be represented by a litigation guardian. The application to vest land was also granted, with the specified land to be vested in the applicants in their capacity as trustees of the Trust. No order for costs was made.

This case highlights the importance of considering the circumstances of incapacitated individuals in legal proceedings, and how courts can adapt their processes to accommodate such situations while ensuring the rights of all parties involved are protected.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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