THE HUNTER ESTATE CASE

Hawke's Bay Herald-Tribune, Issue 142, 3 July 1937, Page 7

THE HUNTER ESTATE CASE

-PresB Aaaoclation.)

Judge and Defence Counsel at Variance FINANCES DISCUSSED

(By Tolegraph-

WELLINGTON, Last Night. The hnanciai position of th'e late Sir Geotge Hunter 's estate at Porangahau' was commented upoh in the Supreme' Court to-day by counsel for Cyril Paul Hunter, of Akitio, and Thomas Percy Hunter, of Porangahau, whoSe retuoval as trustees of the estate is being sought ' by Lady Hunter, the'widow. To-day was the twelf th day of the hearing of the case,- which is. being. heard Dy Mr. Justice Smith. . Mr. J. D. Willis and Mr* E* E. Scott; are appearing for Lady Hunter, and Mr. i C. H. Weston, K.G., and Mr. J. H. Dunn for th6 dfefehdant trustees. Mr. Weston opeiied the Case for the defence yesterday af temoon, and continued to-day. "I would submit that even now the ;trustees cannot really, with any Teason;able safety, incur .much expense," said Mr. Westo.n, . "The safety or otherwise depends on the approaching . seafion; if it is a good one, well and goodp if it is poor, they are again in difiiculties. "I submit that even to-day we arei not reasonably entitled to make large j capital expenditure, because Miss Helenj Hunter 's legacy of £5000 is still un-i paid; but the trustees are now proceed-1 ing with the fencing, and will do some; of the scrub. I do submit that, looking 'back on six and a-half years of these gentlemen's administration, it is a record of which they may well be proud._ "We have had the case of an estato, with big demand liabilities, and, in the main, only frozen assets. That estate has been nursed through the most difQ.-i ciilt times, I suppose, in the memory ofi most living mbn, and it emerges safe' and sound, with an increasing income.' And when we take into accoUnt the state of the station on Sir George's death I do submit that we must enlarge Our xespect for these gentlemen.'" Mr. Weston discttssed details of the estate 's eondition at Sir George's death and the improvements that had been ;made since. Lady Hunter 's expert witnesscs, he said, could not have spenfc more than twenty hours on the station, •which was 8000 acres and carried 14,000 isheep. Yet they formed a considered iopittion. Mr. Weston deseribed Lady Hunter 's lattitude, ahd said that the start of the iproceedings was like "aeroplanes over ILondon." • "There was no declaration of w'ar," (said Mr. Weston. "We were engaged lin correspondence, and the next thing :we get is a Writ; and I suggest that for 'Lady Hunter that is not a fair thing." Mr. Justice Smith: You are right up to date in your manner of declaring ihostilities. Mr. Weston: The first intimation we got is bombs over London. Referring to plaintiff's complaint about trustees not taking legal advice in 1932 as to whether they should bring an action to recover a gift of £1166 made by Sir George Hunter to the Paul Hunter estate, Mr. Weston said that though Lady Hunter was an indomit-: able litigant, the parties at that time, were becoming war weary. There had1 been a lot of litigation, the cost of •. which had amounted to something like £6000. The trustees, if they had honest]y thought there was no ground for taking action, would naturally have been hesitant of embarking on any further litigation, Apart altogether from the case, thefe was a feeling the estate had been penalised enough. His Honour: The difficulty was they were personally concerned in the matter. Counsel: How could they act if they wero personally concerned? They ■couldn'fc sue themselves. His Honour: Yery well, hobody would. oxpect tliem to sue themselves. They announced they were ready to take counsel 's opinion. Why didn't they take itl Seeing they were personally concerned, Oue would have thought they would haVe taken counsel- 'a Opinion. Counsel: They were satisfied there Was no case. TUa Honour: I suppose there were other people concerned besides Lady Hunter, and seeing they were personally; concerned I should say they should have taken eVery step to make their own position perfectly elear. Counsel: They thought there was nothing in the complaint. His Honour: But they were judges in their own cause, that is the trouble. Counsel: That is so, but at the same time they were honest people. His Honour: Yes, no doubt they honestly thought there was nothing in it, but is that the way trustees can aet Whcn they are personally coneerned? what do you say is the tcst I should apply now? Counsel: Thc test is whether they acted honestly and reasonably in the eircumStAnces. His Honour: Suppose 1 say they should have got indepohdent advice at least? Suppo&e I think now that inde^endenfc advice should be obtained? Counsel: How can they 6bt4in it if they themselves have to present the case for an opinion? His Honour: That should bo done by independent solicitors but to cspect trustees to rcsign in every case whore there is conflict of intercsts would, I thiuk, be carrying it too far. The law provides for the position. Lady Hunter stated tho law correetly. 8he said: "If you don't care to do so, I will do it myself. " That is what the law allowed hor to do. Mr. Weston added that Lady Hunter had hor own solicitors. Sho was separately advised aud if she had wanted to pursue the point sho could have done so without any difficulty. His Honour: What is to be done to-day? How can these two gentlemen

who are personally interested in thi«| matteiy decide whether this £11661 should be repaid or ndtf-How can they I properly take steps to have that dete?* mined when they have control of all pape'fs hhd do'cume'ntsf Mr. Weston said they could hand over all. documents ..to .Willia and he could take chargo of them. . Whatever the position, it did not involve their retix'ement from the trusteeship* He subihitted that. they had been guilty ef no inisconduct and Mr. Willis could •not gb so'far -as'to submit that because j the trustees had' a personal interest, |th6y should be removed. - • His HohoUr Said the* law provided that in SuCh' a cass trustees would "get no remuneratiph, With the ihter ests of an. infant inv6lved,"the trustees should have taken some opinion either of counsel or the Court. Mr. Weston said he considered that course would be carrying the matter. very far. His Honour said. that leaving it, to Lady Hunter would be asking her to pay for it personally. .The question was that £1166 had gone from the Sir George , Hunter estate- and should be returned. "The trustees are personally concerned," added his Honour, "and I -do say -that mbst trustees, if an infant were invplved, Would" have taken advice eithef of counsel or the Court. " The case is .to be continued on ' Monday, v.. ' *'