With his younger brother in line to inherit about $10.9 million from a close relative, Roderick Craig claims he is owed six million dollars of that money as a result of a business deal struck over fifty years ago with their relative Max.
Roderick is challenging distribution of Max’s estate in what is direct challenge to his younger brother James inheriting the full $10.9 million. James is residuary beneficiary in the estate of Max Alexander Craig, who died in 2021. Roderick is not named as an estate beneficiary.
Roderick claims he sold his Taranaki panelbeating business at Manaia in 1981 and relocated to Norfolk Island with his family to assist Max in his retail store on the basis that Max had promised Roderick would inherit on his death. Difficulties followed. Roderick’s marriage came to an end two years later. Roderick and Max parted company the following year in circumstances which are proving critical to his claim against Max’s estate.
Estate executor NZ Guardian Trust questions whether Roderick has any grounds to bring a six million dollar claim. If successful, this would amount to two million dollars for each of the three years he worked in Max’s shoe and knitwear business.
Roderick claims the promise of a share in Max’s estate can be enforced under the Law Reform (Testamentary) Promises Act. Claims can be reduced or rejected if adequate payment in some form is made during the deceased’s lifetime in return for the promise made.
Guardian Trust says that even if there were a testamentary promise, wages paid Roderick while he was employed were sufficient compensation for the work done. It further claims that payment of AUD 30,000 made by Max in 1984 to sever their business relationship is a bar to any testamentary promise claim. Roderick returned to New Zealand shortly afterwards.
Roderick said wages received were no more than the amount paid store counter staff and did not represent full payment for the work done. He further claims the AUD 30,000 severance payment was not fully explained and was forced on him at a time when his personal relationship with Max had soured.
Associate judge Skelton left open Roderick’s testamentary promise claim. A full court hearing is needed to establish the reasonableness of payments Roderick received from Max measured against the work done.
Craig v. NZ Guardian Trust Co Ltd – High Court (4.08.23)
23.131