REMOVAL OF TRUSTEES

Poverty Bay Herald, Volume LXIV, Issue 19423, 7 September 1937, Page 6

REMOVAL OF TRUSTEES

LADY HUNTER SUCCEEDS ALL CAUSES OP ACTION COURT RULTNCI CIVEN (Per Press Association.) WELLINGTON, this day. The reserved judgment of Mr. Justice Smith in the claim by Lady Hunter for the removal from the trusteeship of the estate of her late husband. Sir George Hunter, of Cyril Paul Hunter and Thomas Percy Hunter, nephews of Sir George, is in favour of the plaintiff. The judgment was released to-day. Lady Hunter succeeds on all four causes ■ !' action Mr. Justice Smith says that the facts he had found clearly justified an order for the removal of the defendants as trustees. There had been slackness in management, unnecessary loss, a failure to investigate a claim which particularly tested the capacity of the defendants to act correctly when their interest conflicted with their duty, and there existed a state of hostility which prevented the life tenant from working harmoniously with the trustees. Mr. Justice Smith says he desired to make it very clear that he made no reflection on the honesty of the trustees, but in his judgment the welfare of the beneficiaries and of the trust estate would be best secured by removing the defendants as trustees and appointing some independent person, or persons, or corporation in their place. The judge deferred the making of an order appointing a trustee company until the company consented to such trusteeship. Arrangement Criticised Cyril Hunter's executorship in the estate remains, but he is no longer to administer the assets. Referring to the arrangement with Bcthune and Hunter, Mr. Justice Smith says that an arrangement of this nature which protected the stock and station agent and not the estate when prices were low, and contained no stipulation that it. would continue when prices were high, should not have been carried on by the executor or by the trustees. Upon this cause action he thought that Bethune and Hunter had been employed at ,a remuneration which had been excessive by about £7O a year during the past six years. The judgment indicates that though Cyril Hunter's executorship is not immediately affected the judge holds the opinion that it is expedient that he should be removed and to enable the proposed trustee to state its attitude, both with regard to the trusteeship and the executorship no order will be made immediately. The action is adjourned sine die for further consideration to be brought at three days' notice by either party. The question of costs in the meantime is reserved