Prest v Petrodel Resources Ltd: A Cautious Approach Required for Future Application

The majority of commentary in the wake of Prest v. Petrodel Resources Ltd has focused on the Supreme Court’s discussion of a court’s jurisdiction to pierce the corporate veil. This has overshadowed the Court’s decision to recognise a resulting trust, which achieved the same result as if the Court had pierced the corporate veil. The focus of this paper is on the Court’s recognition of a resulting trust. By assessing the position of key stakeholders affected by this decision, the author argues that any further application of Prest in New Zealand should be approached with caution.