IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE
CIV-2015-404-3009
[2020] NZHC 2313
BETWEEN ROSS RONAYNE REID
Plaintiff
AND
BARRY ROSS LAURENCE CASTELTON- REID
Defendant
Hearing: 23 July 2020 Appearances:
S Abdale for the Plaintiff
M J Matthews for the Defendant
Judgment:
7 September 2020
JUDGMENT OF GORDON J
This judgment was delivered by me
on 7 September 2020 at 12 pm, pursuant to r 11.5 of the High Court Rules
Registrar/Deputy Registrar Date:
Solicitors: Clive Gardner Law, Tauranga
Rennie Cox, Auckland
Counsel: S Abdale, Auckland
REID v CASTELTON-REID [2020] NZHC 2313 [7 September 2020]
TABLE OF CONTENTS
Introduction [1]
Summary of facts [5]
Further inquiry [12]
Court of Appeal findings [14]
Scope of resulting trust [19]
Payment of $800,000 to Dee Ann in September 2009 [19]
Payment for Barry’s apartment (first Eclipse apartment) [80] Payment for Ron and Mrs Reid’s apartment (second Eclipse apartment) [94] Allocation of the mixed fund and income earned between the parties [97] First affirmative defence: abuse of process [98] Validity of document and availability of revocation. [100] Second affirmative defence: equitable estoppel [134] Is equitable estoppel available to Barry? [134]
Representation evidence. [150]
Reliance evidence [161]
Detriment evidence [162]
Remedy [163]
Third affirmative defence: change of position [184]
Interest [211]
Result [219]
Orders [220]
Costs [221]
Introduction
[1] Mrs Esme Dede Reid died on 22 November 2008. Her husband, the plaintiff, Ross Ronayne Reid (Ron), and their son, the defendant, Barry Ross Laurence Castleton-Reid (Barry), have been in dispute for some years over matters relating to Mrs Reid’s estate. A large sum of money paid by Ron to Barry is in issue. Efforts at resolution in the earlier part of this decade failed, and have led to an extended period of litigation. The situation has been substantially exacerbated by Ron’s earlier unwillingness to obtain and act on legal advice. The issues which have arisen in this litigation are a direct consequence of mistakes Ron has made about his powers, rights and liabilities in several key transactions in the years since Mrs Reid’s death.
[2] This is the second time this matter has been before me. On the first occasion, I found against Ron on his three causes of action: breach of fiduciary duty; breach of constructive trust; and, restitution. This was on the basis of my finding that Ron had gifted the money in question to Barry. Having regard to my decision I did not consider Barry’s affirmative defences.1
[3] Ron appealed my judgment to the Court of Appeal. The Court of Appeal found Barry held the money on a resulting trust for Ron. The circumstances of the transaction raised a presumption of a resulting trust in Ron’s favour, which was not displaced by evidence of an alternative intention such as a gift or advancement. The Court of Appeal directed this Court to consider the three affirmative defences advanced by Barry and the allocation of the money between the parties given transactions which occurred while…
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- Case
- [2020] NZHC 2313
- Decision Date
CaseChat Overview and Summary
Gordon J found that Barry was not liable for the $800,000 paid to Dee Ann from the disputed amount as the payment was made based on Ron's misunderstanding of his rights to the funds. Barry's liability for the amounts used to purchase the Eclipse apartments was subject to his second affirmative defence of equitable estoppel, which he successfully established. Consequently, Barry was not required to repay the amounts used for the purchases of the two Eclipse apartments. However, the net income earned on the mixed fund was to be shared equally between Ron and Barry. Barry was ordered to repay Ross the sum of $417,414.58, representing Ross's half share of the net income and a proportion of the interest earned while the funds were deposited in the solicitor's trust account. Interest on $417,023.50 at the rate of 2.5 per cent from 15 December 2015 was also awarded. The court noted that each party had a measure of success and invited the parties to agree on costs or file memoranda if they were unable to reach an agreement.
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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