Colin Friend won one million dollars in a 2015 bonus bonds draw, at age 88. His death one year later resulted in litigation over who benefits. Over family objections, the High Court ruled his caregiver was entitled to full ownership of a Nelson house he purchased for her and her family.
Latika Sen and her family immigrated to Nelson from Fiji in 2011. She met Colin outside a local dairy one morning as they both waited for the shop to open. Over time, they became good friends. Latika and her family provided him with both friendship and support. The High Court was told Colin was widowed in 2007. He had three children. One son had died, another was well off and his daughter had not been in touch for nearly a decade. Needing care following some weeks in hospital during 2013, Latika and her family took him in for several months while he recovered. Then, Colin’s social support evaporated. Latika and her family shifted to Wellington for better work opportunities. After the million dollar win, Colin made cash gifts to his grandchildren and his surviving children and contacted Latika. He had bought a second house in Stoke. Latika was told the house would be hers on his death if the family moved back to provide care and support in his old age. She agreed. Legal paperwork was completed having Latika and Colin recorded as joint owners of the $425,000 property. He had his own bedroom in the house, staying overnight weeknights.
Weeks before Colin’s death from cancer, his family learnt for the first time details of ownership for the Stoke property. His son used a power of attorney in his father’s name to change the joint ownership status from joint tenants (which would see Latika assume full ownership on Colin’s death) to tenants in common (which would have Colin’s half share of Stoke remain as an asset in his estate). Latika sued to gain full ownership.
Justice Cooke ruled Latika had a contractual right to full ownership. The promised deal was for the family to return from Wellington and to care for Colin; in return she would get half ownership of Stoke up front and the remainder on Colin’s death. Latika had performed her part of the contract. It was a breach of contract for Colin’s son to change Stoke’s ownership status, defeating Latika’s claim to the other half. Colin’s children said Colin suffered from mild dementia, lacking the capacity to understand what he had agreed. Justice Cooke said Colin’s actions in successfully negotiating a house purchase and putting in place plans to bring back Latika and her family from Wellington demonstrated a degree of sophistication that indicated he knew what he was doing.
Justice Cook dismissed claims Latika had exercised undue influence over Colin. If anything, it was the other way round, he said. It was Colin who manipulated Latika to have her return to Nelson.
Sen v. Public Trust – High Court (22.07.22)
22.128