Cut out of their father’s will, four of Jack Enright’s children were awarded damages totalling $1.7 million from their youngest brother having been wrongly denied fourteen years income from their father’s family trust.
In 2014, Jack Enright died in Australia, near his youngest son Tony. Tony has five siblings. Questions were asked about circumstances in which Tony became sole beneficiary of their father’s family trust owning Dunstan Burn Station at St Bathan’s in central Otago. Covering over 10,000 hectares, Dunstan Burn runs sheep along with some cattle and deer.
The J.J. Enright Trust was created in 1974 with a rental property in Athol Street, Queenstown, settled on the trust. Subsequently, Athol Street was sold, the funds used to subdivide properties at Wye Creek and these profits used to buy Dunstan Burn. It was a matter of pride for Jack to buy back Dunstan Burn; the farm, previously owned by his forebears, had passed out of family hands following financial difficulties.
Evidence was given of Jack progressively falling out with all of his children, bar Tony. Jack was variously described as forceful, strict and dominating. The children were unaware of any entitlement as beneficiaries under Jack’s 1974 family trust. Terms of the trust deed specified net income in each tax year was to be distributed according to the unanimous decision of the trustees, failing that it was to be appropriated each year equally between the six children. The court was told no trustee decisions were in fact made. No provision was made in trust annual accounts for the required allocation of income. Over a fourteen year period to 2008, trustees failed to properly appropriate a total of $2.2 million to the children as beneficiaries. In 2007, Jack transferred all trust assets, then valued at $2.5 million, to Tony despite legal advice this was not permitted by the trust deed. Two years later, these trust assets were valued at $11.5 million.
Justice Palmer ordered Tony compensate siblings Cathie, Wayne and Shell, together with the estate of deceased sibling Adrian, a total of some $1.7 million out of trust assets he had wrongly received; the money to be divided equally between the four. Fellow sibling Terry receives no payment. He was aware back in 2008 of his right to sue but was now out of time to take legal action. Tony was described as born in 1965, qualified with a PhD in medical research and now living in Brisbane.
Re J.J. Enright Trust – High Court (22.05.19)
(19.098)
Post Judgment Note: The Court of Appeal ruled in October 2020 that Terry was also entitled to compensation. His claim was not out of time.