IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
CIV-2015-404-003009 [2016] NZHC 1609
BETWEEN ROSS RONAYNE REID
Plaintiff
AND
BARRY ROSS LAURENCE CASTLETON-REID Defendant
Hearing: 4 July 2016 Appearances:
Ms S Abdale for Plaintiff
Ms Matthew for DefendantJudgment:
18 July 2016
JUDGMENT OF ASSOCIATE JUDGE J P DOOGUE
This judgment was delivered by me on
18.07.16 at 3 p.m., pursuant to
Rule 11.5 of the High Court Rules.
Registrar/Deputy Registrar
Date……………
REID v CASTLETON-REID [2016] NZHC 1609 [18 July 2016]
[1] This matter comes before the court for determination of the defendant’s
application seeking an order for security for costs against the plaintiff pursuant to r
5.45 of the High Court Rules.
Background
[2] The plaintiff was at one time a wealthy man, having been the proprietor, together with his brother, Emslie, of a housebuilding firm that was reasonably well known in Auckland called “Reidbuilt Homes Ltd”. It would now appear that he does not have much money at all. He has been living in Australia for approximately nine years.
[3] The defendant is the adopted son of the plaintiff and his late wife, Esme. Following the death of Esme, the defendant received in terms of her will two properties in Verbena Road, in Birkenhead, Auckland. One of the properties was the former matrimonial home which the parties have referred to by the name they gave to it, “the castle”. The other property was an apartment also in Verbena Road. As well, the defendant was the residuary beneficiary under the estate of his late mother, Esme.
[4] During her lifetime, Esme acquired substantial property from the Hallmark Trust, which the plaintiff and his brother Emslie established for the benefit of their wives and families in or about 1986. In 2007, following the sale of a commercial property, the trustees paid a capital distribution to Esme of approximately
$1,800,000. That sum was initially paid into a bank account of the plaintiff and was then eventually transferred into a joint account of Esme and the plaintiff. In April 2008, the plaintiff and Esme transferred $1,750,000 into a term deposit account where it remained until after Esme’s death.
[5] In March or April 2009, the plaintiff requested the defendant to open a shareholding account with Craigs Investment Partners (“shareholding account”). The account would be held in the defendant’s name but the plaintiff was to have management rights which would enable him to carry out share transactions. It seems
that the plaintiff may also have requested the defendant to open an account with ASB
bank under similar conditions (“ASB account”).
[6] There were a number of key transactions which were carried out in relation to these two accounts. On 2 April 2009, the day after the term deposit had matured, the plaintiff transferred $1,700,000 to the shareholding account. Additionally, the plaintiff transferred approximately $477,000, derived from the sale of shares that had been held in Esme’s name, into the shareholding account on 8 July 2008. Therefore, in excess of $2.2 million in…
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- AGLC
- Reid v Castleton-Reid [2016] NZHC 1609
- Case
- [2016] NZHC 1609
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Background
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