Bank of New Zealand v New Zealand Guardian Trust Co Ltd - [1999] 1 NZLR 664

Trusts and trustees — Liability of trustees — Trustee in breach of trust deed by delay in reporting borrower's non-compliance with deed between borrower and plaintiff banks — Banks advancing further money to borrower — Receivership of borrower due to falling property prices and rising interest rates — Whether banks entitled to recover loss from trustee — Whether loss of trust property.

Equity — Fiduciary relationship — Trustee in breach of trust deed by delay in reporting borrower's non-compliance with deed between borrower and plaintiff banks — Whether trustee in fiduciary relationship to plaintiffs — Whether trustee in breach of fiduciary duty.

Damages — Assessment — Remoteness — Trustee negligent and in breach of trust deed by delay in reporting borrower's non-compliance with deed between borrower and plaintiff banks — Banks advancing further money to borrower — Receivership of borrower due to falling property prices and rising interest rates — Whether banks entitled to recover loss from trustee — Whether loss too remote.

Tort — Negligence — Trustee negligent in delay in reporting borrower's non-compliance with deed between borrower and plaintiff banks — Banks advancing further money to borrower — Receivership of borrower due to falling property prices and rising interest rates — Whether banks entitled to recover loss from trustee — Whether loss too remote.