FARM MUST BE SOLD

Chronicle (Levin), 21 July 1947, Page 8

FARM MUST BE SOLD

Court's Order To Trnstee Of Estate Reserved judgment was recently delivered by tho Supreme Court ip a case in which Robert Lionel Bpvan, of Manakau, represented by lyir. W. E. Leicester, of Wellington, and Normari Bevan, of Manakau, for whom Mr. N. M. Thomson, of Levin appeared, proceeded againsf; Ralph John Bevan and Ruby Miles, both of Manakau, represented by Mr. H. R. Cooper, of Palmerston North. The object of the case was to compel Ralph John Bevan, as trustee in the estate pf jhe late Mr. Robert William Bevan, to proceed with the sale of the last unrealised asset in the estate, a small farm of approximately eight acres at Manakau. ■■ Mr. Justice Christie, who heard the proceedings, has given judgment in favour of Robert Lionel and Norman Bevan, ordering the sale of ihe property. By the -will of the testator, said His Honour in the course of his jqdgment, his widow and one son, Ralph John, were appointed executors and trustees . The widow died in 1942, leaving Ralph John Bevan sole trustee. Under the will the widow was entitled to receive the income from ihe estate and after her death the four parties to the action, who were the daughter and three sons, became eniitled in equal shares to the capital and income. The will directed the trustees to realise the" estate, but with power tq postpone the realisatipn. The estate had now been realised except the small farm, cpntimjpd Mr. Justice Christie, on which Rpbr ert Lionel Bevan had resided for more than 20 'years, during whiclj he had eff ected substantial improvements to the house' and land. For five years from January 1, 1941, he had held a lease whipb had not been renewed, pior did' he desire a new lease t'hough he remained in occupation. About January 23, 1946, he had entered into an. agreement with Ralph John Bevan, as trusiee, to purchase the property for £1350, but .the Land Saies Committee had fixed ihe price at £825. The trustee had refused to sell at the price fixed, relying o?i the authority conferred on him by the will to postpone the sale, in the speculative hope that the restricr tions under the Land Saies Act would be relaxed or abolished. Meanwhile, this last remaining asset contrnued undisposed of, added His Honour. The plaintiffs asked: (1) That Ralph John Bevan be removed as trustee and thiat some other person or persons be appointed; (2') for an order that Robert Lionel Bevdn should have ihe land on payment of £825, or, alternatively; fthat the four beneficiaries were entitled to have the land transferred to them as tenants in equal shares; and (3) for any other relief the court thought iust.

It appeared to him, proceeded Mr. Justice Christie, that the real question was to determine whether the trustee could postpone the sale indefinitely, or whetner he should be required to sell within a reasonable time ahd eomplete his administration of the estate. If the trustee had to sell, the first question which arose was •\yhether he could he required to offer the property in the first instance to Robert Lionel Bevan. to the exclusion of the other beneficiaries or other possibie purchasers, said His Honour. It appeared to him that the trustee was not empowered by the will to arbitrarily postpone the sale. His only reason for doing so was that he was not satisfied with the price fixed. His suggestion that he might get a better price by first expending estate moneys on improving it did not appear pra'eC' tiqable. -There.was np suhstaifitlai. I ambnn't : ,of tr ii# '-pioneys j^difeb|e ( for this purpos'e, ,ewen" if jhelhehe"fifciari.es ' concurred.V-", were it was not to be assumed that after improvements the sale would result in a price appreciably in excess of the present value and the cost of improvements.

After reviewing the legal authorities, His Honour conclude.d his judgment as follows: "I do n.ot think the trustee has any authority to further postpone the sale ,of the property. Having regard, howlever, to the fact that when the matter was before the Land Saies Committee he had made no attempt to substantiate the price specified in -the agreement for s.ale, I think that if he is "genuinLely of the opinion that the price fixed by ihe committee is not the tjrqe value, he should, before proceedihg to sell at the price approved, endeavour to have tlie matter considered again by the Land Saies Committee or Land Saies Court. . "The direction of the court is that within twelve months after the date of this order the trustee, unless all the beneficiaries agree to the contrary, shall proceed to sell the property at the best price

'obtainable in accordance with the Servicemen's Settlement and Land Saies Act. I do not think I have any authority to direct that the property be first offered to Robert Lionel Bevan, but having regard to his long association with it and the improvements he has effected at his own expense, and to the further fact that had the price fixed by the Land Saies Committee been acceptable, the trustee would have sold to him without "a coUrt order, I think that the first ojfer should be made to him." An order \yas also made that the costs of all parties to the action be paid out of the -estate.