As a discretionary beneficiary in the Lambie Trust, Prudence Addleman wants to know why $44 million dollars of trust money was paid across to an Australian company called Edmonton Pty Ltd, a company not named as a trust beneficiary.
In pre-trial skirmishing at the High Court, Prudence’s sister Annette failed to get breach of trust claims against Edmonton Pty shifted to Australia where she lives.
Litigation has its origins in a $4.25 million payment Prudence received in 2002 described as a first and final payment to her as a discretionary beneficiary in a family trust called the Lambie Trust. This came as a complete surprise. She had never heard of the Trust and was unaware she was a beneficiary. Some sleuthing followed. A series of court cases forced disclosure of Trust accounts. There have been various changes of trustee over the years. Annette was a trustee.
Prudence, Annette and their two siblings were raised in Australia. Annette lives in Australia; Prudence lives in the United Kingdom. The two have been estranged for decades. The Lambie Trust was established by their father in 1990, having as its major asset land surrounding Auckland suburb Howick. Funding for the purchase and development of the 42 hectare land holding came in part from a $1.02 million compensation payout Annette received after being left a quadriplegic following a catastrophic accident at a Sydney swimming pool.
After identifying some $65 million dollars had flowed through Trust bank accounts since 1990, Prudence sued both her sister Annette and Edmonton Co Pty Ltd alleging breach of trust. In particular, Prudence wants Edmonton Pty to repay $44 million.
In the High Court, Edmonton Pty asked to be removed from the case. Any claim against it should be heard in Australia, it said. It is an Australian registered company. Its relationship to the Lambie Trust and disputed links to Panama could be dealt with in the Australian courts, it said. Named as a final beneficiary of the Lambie Trust is a Panama company: Edmonton Co Ltd SA. Annette says Edmonton Pty in Australia replaced Edmonton SA in Panama.
Associate judge Bell ruled Edmonton Pty has to front up in the New Zealand courts. Lambie Trust was established in New Zealand. The role of Edmonton Pty and any links to Edmonton SA in Panama could be dealt with by New Zealand courts as easily as by Australian courts. The disputed payments were made from New Zealand out of New Zealand assets, he said.
Addleman v. Lambie Trustee Ltd – High Court (23.09.21)
21.158