TETIIWAITANGIB3TRUSTMLC17TaitokerauMB29416March2011INTHEMAORILANDCOURTOFNEWZEALANDTAITOKERAUDISTRICT17TaitokerauMB294(17TTK294)A20100003350UNDERSection239,TeTureWhenuaMaoriAct1993INTHEMATTEROFTeTiiWaitangiB3BETWEENTETIIWAITANGIB3TRUSTApplicantHearing:26May201015October201020December2010(HeardatWhangarei)Judgment:16March2011RESERVEDJUDGMENTOFJUDGEDJAMBLERIntroduction[1]On20December2010IdeclinedtoappointHapekaRamekaasatrusteeoftheTeTii(Waitangi)B3Trust(―theTrust‖)withmyreasonstofollow.
Thesearemyreasons.
Background[2]Theapplicationwastoappointreplacementtrusteespursuanttos239ofTeTureWhenuaMāoriAct1993(―theAct‖)intermsoftheoutcomeoftheTrust'sAGMheldon29August2009.
[3]Theapplicationfirstcamebeforemeon26May2010.
WiremuTane,thechairmanoftheTrust,challengedthenominationofMrRamekaonthebasisthathehadnotbeennominatedinaccordancewiththeTrust'sprocess.
InanoraldecisiononthatdayIruledthatMrTane'schallengecouldnotstandinthewayofMrRameka'snominationbutthatthequestionofMrRameka'ssuitabilitytobeatrusteeremainedfortheCourttoconsider:17TaitokerauMB295Theissuethatremainsformetoconsideriswhetherhe[MrRameka]isasuitablepersontobeappointedastrustee.
Thereisnoinformationbeforemeofanysubstanceinthatregard.
HehasnotattendedthehearingtodayandIhaveraisedmyconcernsfromwhatIhavereadintheminutesastowhetherhewouldbeaproperpersontoholdtheroleasatrustee.
InlightofwhatItaketobeassertionsinrelationtothestatusofthelandasbeingcustomarylandandothermatterscontainedintheAGM,theysuggestthathemayhaveaninherentconflictincarryingouthisobligationsasatrusteeasdictatedbytheActandbythetrustorder.
Ican'tmakeadecisiononthattodayandso,whatIamgoingtodoisadjourntheapplicationasitrelatestoHapetaRamekatothenextsittingoftheCourtforhimtohaveanopportunitytocomealongtotheCourttoexplainwhatskillsandsoforthhemightbringastrustee.
1[4]IconcludedthehearingbyappointingtheotherthreetrusteenomineesandadjourningtheapplicationforMrRamekatoattendCourt.
[5]Theapplicationwasnextcalledon15October2010.
MrRamekadidnotattendthoughImakenocriticismofhimashisabsencewasduetotheconsequencesofafamilytragedy.
IadjournedtheapplicationtothenextsittingoftheCourtinKaikohe.
[6]ThefinalhearingtookplaceinKaikoheon20December2010.
MrRamekaattended.
HeinitiallywishedtoaddressmefromthebackoftheCourt.
ItoldhimthathewouldneedtocomeintothebodyoftheCourt.
[7]MrRamekathentookissuewiththefactthatthePanuihadincorrectlylistedMaryanneBakerasanapplicantinadditiontotheTrustandinvitedmetocorrectit.
IdeclinedtocorrectthePanui.
IobservedthateveryoneunderstoodthatthehearingwastoconsidertheapplicationtoreplacetrusteesregardlessofthereferencetoMaryanneBaker.
[8]IthenexplainedtoMrRamekathatthehearingwastogivehimanopportunitytotellmewhyheshouldbeappointedasatrustee,thatis,whetherhewasaproperorappropriatepersontobeappointedastrustee.
[9]MrRamekaproducedanaffidavitwhichhereadout.
Hethentookissuewithhavingtoestablishhisability,experienceandknowledgetobeappointedasatrustee.
IntheexchangethatfollowedMrRamekachallengedmyroleinassessingwhetherheshouldbeappointedasatrustee,challengedtherightofthoseopposinghisappointmenttoraiseissueswiththeCourt,arguedintermsofthePreambletotheActthatIwasobligedtoappointhimastrusteeasofright,arguedthattheTrust'sconstitutionalsorequiredthathisnamebe16TaitokerauMB297(6TTK297)17TaitokerauMB296automaticallynotedwiththeCourtandarguedthatheshouldbecompensatedfornotbeingabletoattendandparticipateintrusteemeetingspendinghisappointmentbytheCourt.
[10]MrRamekathenarguedthatthelandisMāoricustomaryland.
HedidnotacceptmyadvicethatthelandisMāorifreeholdland.
HewentontoarguethattheTrustwasan―alienjurisdiction‖.
IquestionedMrRamekaontheapparentcontradictioninhimwantingtobeatrusteewhenhedidnotrecognisetheTrust.
Isetouttherelevantexchange:2Court:So,whatItakefromthatisthatyoumaintainthatthislandisMāoricustomarylandnotMāorifreeholdland.
HRameka:Sir,theCourtstatesitis.
Court:Well,thetitles,theCourttitlesandtheLandTransfertitlesalltellmethatthelandisMāorifreeholdland.
HRameka:Ithasn'tbeentransferredbythebeneficiaries,Sir.
ItmayhavebeentransferredbytrusteesinthealiencontractsthataresignedbuttheyaresubjecttotikangaMaoriasorderedanddirectedbyTeTureWhenuaMaori.
Anythingalien.
It'sregisteredas0.
0,Sir,Maoricustomarylands129(2)(a)heldinaccordancewithtikangaMaorinotanaliendocument.
Letaloneanalienjurisdiction.
ThetrustTeTiiB3isaalienjurisdiction,Sir.
Thereisnofreehold.
Court:Alright.
CanIaskyouthisthen,whyisitthatyouwanttobeatrusteethenifyoudon'trecognisethetrustHRameka:ExcusemeCourt:Whyisitthatyouwanttobeatrusteeifyoudon'trecognisethetrustHRameka:Sir,whyistheAGMallowedmetobeatrusteeWhyhasmyfamilynominatedmetobeatrusteeWhyhaveyouaminuteofmyfamilyrecordonyourrecordthatsaysit'sprivateIneverwantedtobehere.
SomebodythoughtthatIqualityandputmynameup.
ThisiswhoIam.
Court:Doyouseethoughthatthere'saninherentproblemifyoudon'trecognisethestatus-HRameka:Thelaw,Sir.
Court:Justletmefinish.
Ifyoudon'trecognisethestatusandroleofthetrust,thenyouhaveaninherentdifficultyinbeingatrustee.
HRameka:Sir,IhavenoinherentproblemwithTeTureWhenuaMaoriasreferredintheaffidavit-sorry,theletterdeliveredtoyouonthe23rd.
TeTureWhenuaMaorihasnoconflictinmeaningwithus.
Court:Alright.
HRameka:Theconstitutionregulationsupportsthatinherentjurisdiction,Sir.
TeTureWhenuaMaorisupports,promotesandfacilitatesinherentjurisdiction,Sir.
Ihavenodifficultywiththat.
215TaitokerauMB138–140(15TTK138-140)17TaitokerauMB297Court:Alright,thankyou.
Haveaseat.
HRameka:Iwillwaitforyourminute.
I'moffsoon.
Iunderstandyouaregoingtobeaskingforopposition,I'vealreadynotedonyourrecordthattheoppositionistobetransferredbacktothepreferredjurisdictionbeforethebeneficiaries.
So,haveaniceday.
Court:Well,ifyouaregoingtoleaveletmemakeitclearthatIdoneedtohearfromthosewhooppose-HRameka:That'sfineSir.
Court:-andthisistheforumforthattobeaddressed.
HRameka:NoSiritisn't.
ThebeneficiariesaretheownersofthelandwithrespecttotheCourt,notthisCourt.
But,assoonasIgetyourthingthenIwillknowwhattimeframeIhavetoappeal.
Thankyouverymuchforhearingmykorero.
[11]MrRamekathenleftthehearing.
[12]IhavesummarisedMrRameka'sviewsasbestasIcan.
HavingseenandheardMrRamekainpersonIwoulddescribehismannerasbelligerentanddogmatic.
HiswrittenmaterialandoralpresentationwereinthestyleofthosewhooccasionallyattendCourttochallengeitsjurisdictiononthebasisofTeWhakaputangaoNgaRangatiraoNiuTireni,TeTiritioWaitangiandtheflawedargumentthatMāorifreeholdlandisMāoricustomaryland.
Bywayofexample,accompanyinganundatedletterfromMrRamekawhichwasreceivedbytheCourton23August2010isaonepagedocumentwhichsetsoutwhakapapa,hasthestampofthe―NgatiRehiaHapuWhanauKotahitangaRegistry‖andatthebottomofthedocumentreads:Imposedpursuanttotheprovisionsofs2ands5ofMāoriIncorporationConstitutionRegulationsAmendmentAct/9/95inaccordancewiths2ands5ofTeTureWhenuaMāoriLandAct1993CAUTION:anypersonwho(1)falsifiesanyoftheparticularsontheCertificate,oruseswithoraltereddetailasknowingittobefalse,isliabletoprosecutionundertheMāoriCrimesandFalseJusticeAct2003.
[13]WhetherMrRamekaistheauthorofthedocumentdoesnotmatter.
ItisrelevantasitshowsthatMrRamekaispreparedtorelyonadocumentthatreferstofictionallegislationinamisguidedattempttogivethedocumentsomeformoflegitimacy.
Comingfromatrusteenominee,thatisaconcern.
[14]AfterMrRameka'sexitMrTanespokeinoppositiontoMrRameka'sappointment.
MrTaneexplainedthattheTrustadministersfourcommercialleases,45residentialproperties,aholidayparkandbackpackeraccommodation.
Inaletterdated4November2010MrTanehadsetouthisspecificconcerns,whichwere:17TaitokerauMB2981.
MrRameka'sdaughtervacatedoneoftheresidentialpropertiesowingadebtofover$2,500.
00.
2.
MrRamekadidnotcomplywiththenominationprocess.
3.
MrRamekadisplayed―unrulyandthreateningbehaviour‖atbeneficiarymeetings.
4.
TheTrusthasconcernsconcerningMrRameka'scomputerliteracyandmanagementofconfidentialityofTrustbusiness.
5.
On1November2010MrRamekaalarmedTruststaffbythrowingroadsideconesontotheTrust'sofficegrounds.
[15]ItoldMrTanethattheissueconcerningMrRameka'sdaughterwasirrelevant.
IalsoobservedthatIhadalreadyaddressedthequestionofthenominationprocessatthefirsthearing.
MrTanethenelaboratedontheremainingconcerns.
[16]Asfortheunrulyandthreateningbehaviour,MrTanesaidthatMrRamekawasuncooperativewiththemanagementofmeetingagendas,refusedtotakenoticeofthechairmanandwasthreateningtooneofthetrustees.
MrRamekasignedattendancelistswithhisfirstnameonlyandwithoutanycontactdetailsandhasattimescitedJudgeSpencerashis―ancestor‖andprovidedJudgeSpencer'saddressastheaddressforhiscorrespondence.
[17]Asforthequestionofconfidentialityoftrusteebusiness,MrTaneexplainedthattheTrusthastodealwithimportantissuesinrelationtoleasesexpiring,whethertheyshouldberenewedandrelatednegotiations.
HehadageneralconcernthatMrRamekawouldbreachconfidentiality.
[18]Asforthethrowingofroadsidecones,thisrelatedtoroadandinfrastructureworkbeingundertakenaroundtheTrust'slandwhichMrRamekaobjectedto.
[19]AlbieApiata,atrustee,spokeinsupportofMrRamekabeingappointedonthebasisthatthebeneficiarieshadnominatedhim.
[20]ApareriaRameka-Kere,MrRameka'ssister,alsospokeinsupportofMrRameka.
Shedownplayedtheconflictwiththeexistingtrusteeashavingbeeninstigatedbythattrustee.
Shedidnotconsiderherbrothertobethreatening.
Asfortheincidentwiththeroadsidecones,sheexplainedthatthisarosefrombeneficiariesnotbeingnotifiedaboutworkthatwasbeingundertakenandthatotherbeneficiarieshadsimilarconcerns.
Finally,sheemphasisedherbrother'swhakapapaandroleasmangaifortheirwhanau.
17TaitokerauMB299Thelaw[21]Section222(2)provides:222Appointmentoftrustees(2)TheCourt,indecidingwhethertoappointanyindividualorbodytobeatrusteeofatrustconstitutedunderthisPartofthisAct,—(a)Shallhaveregardtotheability,experience,andknowledgeoftheindividualorbody;and(b)Shallnotappointanindividualorbodyunlessitissatisfiedthattheappointmentofthatindividualorbodywouldbebroadlyacceptabletothebeneficiaries.
[22]Iamsolelyconcernedwiths222(2)(a),thatis,whetherMrRamekahastheability,experienceandknowledgetobeatrusteeoftheTrust.
ThisprovisionhasbeendiscussedbytheMāoriAppellateCourtintwodecisions.
[23]InBaker–TataraakinaCBlock3theappellantarguedthatthelowerCourthadnotenquiredsufficientlyintothetrusteenominees'ability,experienceandknowledge.
TheAppellateCourtrejectedtheargument.
[24]InRihiNiao–TeAokahariNiao4theappellantchallengedthelowerCourt'srefusaltoappointtheappellantaskaitiakitrusteeforherson.
TheAppellateCourtrejectedtheappellant'sgroundsandinparticularconcludedthatintermsofs222(2)(a)theCourthadconsidered―thequalitiesoftheappellantandrejectedherasapossibleappointee.
‖[25]Thesedecisionsconfirmthat,inappointingtrusteesunders222,theCourtisexercisingadiscretionandhasabroadscopeinhowitassesseswhetheratrusteenomineehastherequisiteability,experienceandknowledge.
[26]Clearly,inmakingitsassessmentunders222(2)(a)theCourtmustdosoinlightofthecircumstancesofthetrust.
Thatis,whatisthebusinessofthetrustThemoreatrust'sbusinessiscommerciallyorientatedthemoretheCourtwilllooktoappointtrusteeswithcommercialability,experienceandknowledge–thoughIwouldaddthattheCourtmayassessanindividual'sskillsinlightoftheoverallskillsamongstthetrustees.
Thelessatrust'sbusinessiscommerciallyorientatedthelesssuchcommercialskillsarerelevant.
3Baker–TataraakinaCBlock(1995)11TakitimuAppellateMB50(11ACTK50)4Niao–TeAokahariNiao(2003)10WaiarikiAppellateCourtMB110(10AP110)17TaitokerauMB300[27]TheCourtdealswithabroadrangeoftrustsasisillustratedbythetwodecisionsreferredtoabove.
InBaker–TataraakinaCBlockthetrustadministereda14,857.
6669hectareblockinrespectofwhichthetrusteeswereconsideringaforestryproposal.
Attheotherendoftherange,inNiao–TeAokahariNiaothetrustwasakaitiakitrustforasingleminor.
DiscussionCircumstancesoftheTrust[28]TheTrustadministers70titlesthatareallMāorifreeholdland.
Fouroftheblocksareundercommercialleaseswhichhavebeeninplaceforseveralyears.
Thereareapproximately45residentialpropertieswhicharerentedtobeneficiariesortheirwhanau.
Anindependentrealestatecompanyiscontractedtomanagetheresidentialpropertiesonadailybasis.
TheTrustalsooperatesaholidayparkandalittleoverayearagopurchasedabackpackeraccommodationbusinessoperatedbyoneofitslessees.
IamtoldthattheTrust'sannualrevenuenowexceeds$1,000,000.
00.
IthassignificantratingcommitmentstotheFarNorthDistrictCouncilasaresultofthenumberoftitlesitadministersandhassignificantpropertymaintenancetoattendtoinrelationtoitsvarioushousesandbuildings.
[29]TheTrust'sownershipandbeneficiarystructureisunusual.
AccordingtotheCourt'srecordsthereare1317owners.
However,asperthetrustorderof23January2003,thebeneficiariesoftheTrustarethedescendantsofthe251tupunaidentifiedasownersin1891.
Thus,thebeneficiariesarelikelytonumberinthethousands.
[30]InrecentyearstheTrust'sactivitieshavecomeundertheclosescrutinyoftheCourtasaconsequenceofanumberofapplications.
5Theseincludedapplicationsto:reviewthetrust,injunctthetrustees,enforcetheobligationsoftrusteesandenablethemajorityoftrusteestoconcludethepurchaseofthebackpackeraccommodationbusiness.
There5A20040004185s231A20040007225s239A20050002475s19(1)(b)A20050008403s43(repeatedreference)A20080003851s239A20090004415ss239,240and244A20090014026s351A20090016427s237A20090019485s19A20100003350s239A20100007590s43.
17TaitokerauMB301remainsoutstandinganapplicationunders231oftheActbyMaryanneBakertoreviewtheTrust.
MostoftheapplicationsraisedallegationsovertheperformanceoftrusteesandindeedatonetimetheCourtappointedanaccountantasanindependenttrusteeandengagedanotheraccountanttoreviewtheoperationoftheTrust.
TheseapplicationsdemonstratethatthecalibreoftrusteesiscriticaltothesuccessfulfunctioningoftheTrustbutthatinthelasttwoorthreeyearsthemajorityoftrusteeshavebeguntofunctionrelativelywelltogether.
[31]However,theTruststilloccasionallyencounterscostlyinternaldisputesthatsuggestalackofcommercialacumenamongstsometrustees.
In2009themajorityofthetrusteesappliedtotheCourtpursuanttoss227and237oftheActforanorderenablingthemtocompletethepurchaseofthebackpackeraccommodationbusinessviaacompanyestablishedbytheTrusttorunthebusiness.
Theminorityofthetrusteesrefusedtocompletethetransactionandopposedtheapplicationastheydidnotconsiderthatthebusinessshouldbeoperatedthroughacompany.
Igrantedtheapplicationandinthecourseofmydecisioncommentedonthestanceoftheminoritytrustees:6Third,theothercomplaintsaboutthemannerinwhichthepurchaseistobestructuredshowsasurprisinglevelofmisunderstandingbysometrusteesandbeneficiariesaboutcommercialtransactionsofthisnature.
Whetherthatlevelofmisunderstandingisbornofignoranceofmattersofbusinessorbecauseofpressurefromwhanauwithotheragendaswhichtheycannotwithstandorsheerobstinencebecauseoflongstandingpersonaldisagreementswithfellowtrusteesisnotclear.
Whiletrusteesareentitledtodisagreewiththeirfellowtrustees(seess227andclauses16and17ofthetrustorder),wheretheydosoforirrationalreasonsitreflectspoorlyontheirabilitytoactastrustees.
AsIhavealreadysaid,thestructureofthepurchaseviaacompanyisentirelyappropriateandIwillmaketheorderssought.
[32]GiventhebusinessoftheTrustanditsrecenthistoryitiscriticalthattheCourtcarefullyconsidertheappointmentoftrustees.
ReasonsfornotappointingMrRameka[33]IconcludethatMrRamekashouldnotbeappointedasatrustee.
[34]First,andofmostsignificance,MrRameka'spersonalconvictionsconcerningtheTrustbeingan―alienjurisdiction‖,thestatusoftheland,thelegislationaffectingMāorifreeholdlandandthejurisdictionoftheCourtareincompatiblewithhimbeingatrustee.
6143WhangareiMB30(140WH30)17TaitokerauMB302[35]IrejectthesuggestionthatMrRamekaismerelyapassionateadvocateoftheAct.
Inreality,hepassionatelyseekstochallengethestatusoftheland,thejurisdictionoftheCourtandtheauthorityofbodiescreatedbytheCourt.
HedoesthisthroughamixofselectivesamplingofprovisionsoftheActthataregenerallytakenoutofcontext,flawedlegalarguments,referencetofictionallegislationandtheinvokingoftheTreatyofWaitangiandotherhistoricalinstitutions.
Furthermore,herefusestoacceptacontraryview.
Hisattitudeisbeyondpassionatetothepointofbeingdogmatic.
Ihavenoconfidencethathecanseparatehisstronglyheldpersonalconvictionsfromtheroleoftrustee.
Heis,ofcourse,fullyentitledtohisconvictionsbuttheycarrywiththemconsequenceswhichIcannotavoidifIamtoproperlyperformmydutyofappointingsuitabletrusteestoactintheinterestsofallthebeneficiariesinaccordancewiththelaw.
[36]Second,IamnotsatisfiedthatMrRamekabringstheability,experienceandknowledgeneededtobeatrusteeofthistrust.
ItisnotenoughthatheisconsideredtobeamangaiforhiswhanauorbecausethoseatanAGMvotedforhim.
TheActmakesthatclear.
Heandhissupportershavenotdemonstratedthatheissuitedtobeatrusteeofthistrust.
[37]Third,IagreethatMrRamekawouldlikelybedisruptivetothebusinessoftheTrustanddisinclinedtoobserveimportanttrusteedisciplinessuchasconfidentiality.
Hisbehaviourinmeetingsandtheincidentconcerningtheroadsideconesconfirmthatheisledbyhispersonalconvictions.
Inmyassessment,hewouldstruggletomoderatehisbehaviourinordertomeethisobligationsasatrustee.
[38]InallthecircumstancesIdonotconsiderthatMrRamekashouldbeappointedasatrusteeintermsofthetestins222(2)(a).
DatedatWhangareithis16thdayofMarch2011.
DJAmblerJUDGE
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