Trusts Act 2019

Court powers and dispute resolution

129: Court may set off gains and losses arising from investment

You could also call this:

"Courts can balance investment losses and gains to make things fairer for you."

Illustration for Trusts Act 2019

If you are involved in a court case about a trustee's investment that did not go well, the court can look at the whole situation. You might have lost money on one investment, but made money on another. The court can decide to balance the loss against the gain. This means the court can subtract the loss from the gain, so you do not lose as much money. The court has this power, and it does not affect any other powers the court has to balance losses against other things.

The court's power to balance losses and gains is part of the law, and you can find similar rules in other laws, such as s 13Q of a previous law. You can look at how the court makes decisions in these situations to understand how it works. The court's main goal is to make a fair decision based on the circumstances.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383056.


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Part 7Court powers and dispute resolution

129Court may set off gains and losses arising from investment

  1. This section applies to a proceeding for breach of trust in relation to an investment by a trustee if a loss has been or is suspected to have been incurred by the trust.

  2. The court may set off all or part of the loss resulting from the investment against all or part of any gain resulting from any other investment whether in breach of trust or not.

  3. The power does not limit or affect any other power or entitlement to set off all or part of any loss against any property.

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