The High Court revoked an enduring power of attorney a sister held over her brother’s financial affairs. She has over sixty convictions for dishonesty spread over two decades. He has chronic mental illness, with impaired short-term memory. His bank account was frozen by bank management after an inheritance from his mother began disappearing at an alarming rate, spent gambling at Sky City casino. Public Trust was given control of his bank account.
All names were supressed by the High Court, with aliases given for the case name.
In 2015, an inheritance of $203,400 was paid into the brother’s credit union account. Within one month, over $100,000 had been spent at Sky City. Knowing his personal circumstances, credit union management froze the account. The sister, accompanied by her brother, called at credit union offices demanding the account be unfrozen. She tried to stop management speaking to her brother alone. She had to be removed by police. She was subsequently convicted of trespass. A complaint made to the consumer complaints service operated by Financial Services Complaints Ltd was dismissed. The credit union was justified in freezing the account, it said.
The court was told the brother then signed an enduring power of attorney giving his sister control over his financial affairs. The credit union ignored this power of attorney, refusing to hand over her brother’s money. She sued. A court-appointed psychiatrist was to later report the brother lacked capacity to manage his own affairs and would have been mentally incapable of understanding the legal effect of granting a power of attorney in favour of his sister. This report came after the sister attempted to stop his brother attending a psychiatric examination.
In court, the brother said his sister was his ‘best friend’ providing help and support for his mental issues. Revoking the power of attorney, Justice Moore said this does not affect her ability to continue supporting her brother. But she is not a fit and proper person to manage her brother’s financial affairs, he said.
Flavell v. Campbell – High Court (12.04.19)
19.076