Trusts Act 2019

Court powers and dispute resolution - Alternative dispute resolution

142: Definitions for purposes of sections 143 to 148

You could also call this:

"What special words mean in sections 143 to 148 of the Trusts Act 2019"

When you read sections 143 to 148, you need to know what some words mean. An ADR process is an alternative way to resolve a dispute, like mediation or arbitration. It helps people agree on a solution to a problem.

You will see the term ADR settlement, which means an agreement that people reach through an ADR process. This agreement is enforceable, meaning it is legally binding, but it does not include an arbitral award. An arbitral award is a decision made by an arbitrator, which has the same meaning as award in section 2(1) of the Arbitration Act 1996.

An arbitration agreement is an agreement to resolve a dispute through arbitration, which has the same meaning as in section 2(1) of the Arbitration Act 1996. You might also see the terms external matter and internal matter. An external matter is a dispute that involves a trustee and someone who is not part of the trust. An internal matter is a dispute that involves a trustee and a beneficiary, or another trustee, of the trust.

The word matter refers to a legal problem or dispute related to a trust. It can be a court case or a disagreement that might lead to a court case, but it does not include disputes about whether a trust is valid or not.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383075.

Topics:

Money and consumer rights > Banking and loans

141: Jurisdiction of Family Court, or

"What the Family Court can and can't decide in family cases"

143: Power of trustee to refer matter to alternative dispute resolution process, or

"Trustees can send problems to a special solver if everyone agrees"

Part 7Court powers and dispute resolution
Alternative dispute resolution

142Definitions for purposes of sections 143 to 148

In sections 143 to 148,—
ADR process means an alternative dispute resolution process (for example, mediation or arbitration) designed to facilitate the resolution of a matter
ADR settlement, in relation to a matter,—
1. means an enforceable agreement reached through an ADR process that resolves the matter; but
2. does not include an arbitral award
arbitral award, in relation to a matter that has been referred to arbitration, has the same meaning as award in section 2(1) of the Arbitration Act 1996
arbitration agreement, in relation to a matter that has been referred to arbitration, has the same meaning as in section 2(1) of the Arbitration Act 1996
external matter means a matter to which the parties are a trustee and 1 or more third parties
internal matter means a matter to which the parties are a trustee and 1 or more beneficiaries, or a trustee and 1 or more other trustees, of the trust
matter—
1. means—
  1. a legal proceeding brought by or against a trustee in relation to the trust; or
  2. a dispute in relation to the trust between a trustee and a beneficiary, or between a trustee and a third party, or between 2 or more trustees, that may give rise to a legal proceeding; but
2. does not include a legal proceeding or a dispute about the validity of all or part of a trust.