Putting fishing ITQ into a family trust was easy, getting out caused heartbreak and heavy legal expenses as Wellington’s Ruocco family found.
Sons of Italian-born Luigi Ruocco followed their father into the fishing industry. Issued with Individual Transferable Quota when deep sea fishing stocks were privatised, the families’ quota was put into a family trust. As at 2019, the Trust held ITQ valued at $3.4 million plus $500,000 cash. The High Court was told one of Luigi’s sons, also called Luigi but universally known as Bidgi, wanted out. A family scrap followed. Legal expenses mounted. Eventually, all family members came to an agreement; Bidgi could take a one fifth share of the Trust’s ITQ plus a similar share of remaining assets, with Bidgi and his family then excluded as future Trust beneficiaries. Court approval was needed. Named as Trust beneficiaries are children, grandchildren and great-grandchildren of Luigi. For those aged under 18, their parents consented. Children yet born cannot give consent; the High Court stands in their stead, scrutinising changes to Trust arrangements on their behalf. The High Court does not act as a ‘rubber stamp,’ nodding through anything put in front of it.
Justice Grice approved the deal. Splitting off a one fifth share was equitable. It removed stress and disruption within the wider Ruocco family and brought ongoing legal costs to an end.
Ruocco v. Ruocco – High Court (28.05.20)
20.092