Walters v Wikiriwhi - [2022] NZCA 93

IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA

CA345/2021
[2022] NZCA 93

BETWEEN	ERIC THOMAS HIRAU WALTERS, APERAHAMA WITHERS, STEVEN KORI TREVELYAN AND MICHELLE HURAE VALIANTINA SATCHELL Appellants
AND	SUNNY WIKIRIWHI AND RENEE DES BARRES Respondents

Hearing:	10 February 2022
Court:	Kós P, Clifford and Collins JJ
Counsel:	T J Conder and S A Stretton for Appellants J P Koning for Respondents
Judgment:	29 March 2022 at 9.30 am

JUDGMENT OF THE COURT

AThe application to adduce further evidence is declined.
BThe appeal is dismissed.
CWe make no order for costs.

____________________________________________________________________

REASONS OF THE COURT

(Given by Collins J)

Introduction

At issue are the duties and liabilities of the trustees of an ahu whenua trust administered pursuant to the Te Ture Whenua Māori Act 1993 (the Act). The Trust is called the Oruanui Lands Trust (the Trust) and holds on behalf of its beneficiaries a farm located approximately 10 kilometres north-west of Taupō.[1]
[1]There are two separate trust orders, but they are both called the Oruanui Lands Trust and are administered together.
The Māori Land Court found the appellants, who were trustees of the Trust, had breached the duties they owed the beneficiaries when allowing Mr Walters (one of the trustees) to acquire a house and land that formed part of a block of farm land the Trust purchased in 2013.[2] The Māori Land Court ordered Mr Walters pay $101,000 by way of equitable damages and $27,475 for unpaid rent and subdivision costs.[3] The Court removed the appellants from their roles as trustees.[4]
[2]Wikiriwhi v Walters – Oruanui 9 Block and Part Oruanui 10 Block, Lot 1 Deposited Plan 471989 and Lot 2 Deposited Plan 471989 (2020) 232 Waiariki MB 212 (232 WAR 212) [Māori Land Court decision] at [68].
[3]At [100(d)].
[4]At [71].
The Māori Appellate Court upheld Mr Walters’ appeal concerning the payment of equitable damages and remitted that issue back to the Māori Land Court for redetermination.[5] The balance of the Māori Land Court judgment was upheld by the Māori Appellate Court.[6]
[5]Walters v Wikiriwhi – Oruanui 9 Block and Part Oruanui 10 Block, Lot 1 and 2 Deposited Plan 471989 [2021] Māori Appellate Court MB 102 (2021 APPEAL 102) [Māori Appellate Court decision] at [96]–[97].
[6]At [62]–[63] and [75]–[80].
The former trustees now appeal the decision of the Māori Appellate Court upholding their removal, and on behalf of Mr Walters, they appeal that Court’s decision as to equitable damages. The respondents, who sued in their capacities as beneficiaries of the Trust, oppose the appeal.

Background

Before the events in question, the Trust lands consisted of:
(a)Oruanui 9 Block: This comprised approximately 195 ha of Māori freehold land and, at the relevant time, had 652 beneficial owners.
(b)Part of Oruanui 10 Block: This is about 14.5 ha of Māori freehold land and had 643 beneficial owners. Of this land, about 10.5 ha was farmed. The remaining four hectares is administered as a Māori reservation for the purposes of…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Walters v Wikiriwhi

Details

AGLC: Walters v Wikiriwhi [2022] NZCA 93
Case: [2022] NZCA 93
Decision Date: 29 March 2022 at 9.30 am

CaseChat Overview and Summary

The appellants, who were trustees of the Oruanui Lands Trust, sought to appeal the decision of the Māori Appellate Court upholding their removal as trustees, and on behalf of Mr Walters, they appealed that Court’s decision regarding the amount of equitable damages. The respondents, who sued in their capacities as beneficiaries of the Trust, opposed the appeal. The main legal issues the Court was required to decide were whether the appellants breached their fiduciary duties, and if so, whether their removal was justified, and whether the quantum of equitable damages should be redetermined. The Court found that the appellants breached their fiduciary duties by allowing Mr Walters to acquire a house and land that formed part of a block of farm land the Trust purchased. The Court held that the breaches of trust were serious and warranted the removal of the appellants as trustees. The Court also found that the Māori Appellate Court was correct in remitting the issue of equitable damages back to the Māori Land Court for redetermination. The appeal was dismissed, and no order for costs was made.

Orders