23 April 2015

Estate: MacKintosh & Hall v. Thomas

Descendants of Norman Thomas are at arm’s length in a family stoush over entitlement to his $20 million dollar Canterbury farming estate with son pitted against his sister’s children.
The High Court was asked to intervene when son Philip gave notice to his nephews requiring them to vacate farms they are occupying.  This after an earlier family arrangement fell apart.  As a temporary measure, the High Court ordered the nephews start paying a market rental for farms they are occupying and further ordered that Norman’s son Philip is not to go on to the disputed land pending resolution of estate litigation as to who is entitled to what.
Prior to his death, Norman Thomas had been farming in partnership for 35 years with his son Philip.  The two fell out in Norman’s final years and in April 2012 Norman started court action to declare their partnership at end.  This was not resolved before his death.
At the time of Norman’s death, two of his grandsons (children of Philip’s sister) were farming various partnership properties.  Since 2010, grandson Mark Reed has been in possession of two farms known as Yaldhurst and Halkett and grandson Simon Reed has been in occupation of two others, Chesmars and Cridges.   Philip claims ownership of these farms as partnership assets from the partnership that existed with his father.  Family members, including other grandchildren, have made claims against Norman’s estate under the Family Protection Act.
A High Court hearing to resolve all these issues was put on hold in May 2014 following an agreement in principle between all family members on ways to settle their dispute.  Nothing came of this.
The High Court was told matters reached a head when Philip gave notice requiring his nephews to vacate their farms by early March 2015.  Evidence was given that the two grandsons have not paid for the last five years any rent or outgoings on the properties they are occupying.  Grandson Simon claims he has a valid claim against Norman’s estate for at least a half share of the property he is occupying.  Grandson Mark claims Norman promised him a ten year lease over the property he is occupying.  Justice Dunningham said this was a case of the two in occupation arguing that Philip had no right to possession of the land, despite Philip being a co-owner of the land and a co-owner who had never agreed to the rights of possession claimed by the grandsons.  A hearing date to resolve these claims is set down for 2016, she said.
Justice Dunningham ruled the two grandsons were to pay rent in the interim, with half payable to Norman’s estate and the other half to Philip as co-owner of the properties.
Annual rent payable from March 2015 was fixed at $49,000 for Simon and $46,000 for Mark, with the two to pay future outgoings on the properties they occupy including rates and insurance.  They are entitled to a refund of rentals paid should the 2016 court hearing determine they have a valid ownership claim over the disputed farms, Her Honour said.
Estate: MacKintosh & Hall v. Thomas – High Court (23.4.15)
15.036