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Johns v Lord [2020] NZFC 8974

Published 17 January 2022

Application for provision from estate — clawback of assets — duty of executor and trustees — self dealing — fiduciary obligation — Family Protection Act 1955 — Administration Act 1969 — Trustee Act 1956 — Joint Family Homes Act 1964 — Protection of Personal and Property Rights Act 1988, ss 97, 99, 107, 108 & 183 — Property (Relationships) Act 1976, s 10. This was an application by the son of the deceased for further provision from the Estate of his father. The applicant sought an adjournment of the hearing on the basis that the respondents failed to take appropriate steps to ensure that assets were properly brought within the estate. He claimed that the proceeds from the sale of a property that the deceased had received as an inheritance should have formed part of the deceased's estate, and the widow acted inappropriately in placing the funds into the joint account of the parties. Prior to his death, the deceased had signed an enduring Power of Attorney (EPOA) to his wife, and upon the sale of the property the money was paid into the couple's joint account. From this sum of money that formed the inheritance, roughly 40 per cent was used to pay the deceased's rest home fees until his death. The respondents together with the widow opposed the adjournment application and asserted that the application under the FPA should be dismissed. The Judge held that there was little prospect of success if the applicant's claim was to proceed. Any amendment to s 107 Protection of Personal and Property Rights Act had occurred after the EPOA had come into force, diminishing the merit of the applicant's self-dealing argument. The Court concluded that even if a clawback attempt under the Family Protection Act was successful, the applicant would get a similar amount to what he had already received as a legacy, and the costs would exceed such a benefit. The Judge declined to adjourn the proceedings, and the application was dismissed. Judgment Date: 16 October 2020.