TOKAANU ESTATE

New Zealand Herald, Volume LXXIII, Issue 22353, 26 February 1936, Page 19

TOKAANU ESTATE

A WIDOW'S CLAIM . MANAGEMENT in question ___ action against brother [from our OTVX correspondent] HAMILTON, Tuesday An involved civil action relating to t ]j e ownership and management of the Tokaanu Hotel, a store and fishing lodge-; at Tokaanu, was heard before jjr. Justice Cnllan in tho Hamilton Supreme Court to-day. The plaintiff, was Annie Jones, widow, 0 f Tauranga (Mr. Cooney), as trustee . t jj C estate of Robert Jones, formerly 0 f Tokaanu, deceased, and tho defendant was her brother, John Atirau Asher, storekeeper, of Tokaanu (Mr. Ongley)' Plaintiff's Allegations The statement of claim set out that flobert Jones made his will on January 29. 1923. appointing William Whittaker Warnock, of Auckland, and defendant as executors and trustees. Mr. Jones died on May .30, 1924, and was survived by Jiis widow and three children. ruder the will the widow received a life interest in tho residuary estate, the remainder going to the three chil- j (jren as: tenants in common. From 1024 to 1032 the trustees and their successors permitted plaintiff to carry on deceased's hotel, store business and fishing lodpes at Tokaanu. The estate was then -north £20.000. The trustees retired in 1020 and Henry Herbert Steedman, of Taihape, and plaintiff were appointed in their stead. Mr. Steedman died last year. Plaintiff stated that defendant continued to act as virtual trustee, retaining control of the estato and dominating the real trustees for his own benefit. In 1932 defendant induced the trustees to lease to him the lands and property of the trust estate for a term of five years at £6 a week with a right of renewal for a further fire years. "Rental Inadequate" Counsel for plaintiff contended that the rental was inadequate and unconscionable, and that the lease was obtained in fraudulent breach of trust. It was further claimed that defendant involved the estate in heavy liabilities 1 and much of the estate was used in paying these off. Defendant, he said, retained possession of the estate accounts .and documents. Plaintiff asked that the deed of lease be surrendered and cancelled, that defendant be required to account to her for his administration of the estate and for all , moneys received. An order for possession of the land and property described in the lease was also sought. Alternatively, plaintiff stated that if the deed of lease was held to be binding, then she claimed that defendant -was £4OO in. arrears with his rent under it, and her right to terminate his lease had arisen. General Denial Defendant said he ,liad always kept full accounts and had always been ready to supply plaintiff with all the information she required. He denied that he had fallen in arrears with rent and he denied misappropriation of trust moneys. He also denied that he had been guilty of misconduct or that his retirement from the trusteeship was due to his mismanagement. Defendant contended that the rental he was paying 7 for the lease of the property was a fair one. He claimed that between May 11, 1932, and December 31, 193-5, he had paid out on behalf of the trustees £4613 2s 3d, and during the same period he received £3255 15s lid. The amount he paid out over and above * the receipts was thus £1357 6s 4d. Ho claimed that the trustees undertook to refund this sum to him, but had failed to do so. He therefore counter-claimed for £1357 6s 4d and costs. "Credit to Natives" Mr. Cooney said defendant owed £341 .' 16s under the head lease to the Aotea Land Board and £BO6 under the second lease to Mrs. Jones. There was therefore £1147 16s due directly and indirectly to the 'trustees. Mrs. Jones received £2 a week during the currency of the lease up to six months ago. Defendant gave credit to natives for goods of a value aggregating £6OOO. The estate, which was originally worth anything up to '£20,000, was now not worth more than £3OOO or £4OOO clear of liabilities. There were bailiffs in the hotel at the present time. Plaintiff gave evidence supporting the statement of claim. The case was adjourned till to-morrow.