BLACKMOUNT FORESTS LIMITED v TRINITY FOUNDATION (SERVICES NO 2) LIMITED [2013] NZHC 2209

BLACKMOUNT FORESTS LIMITED v TRINITY FOUNDATION (SERVICES NO 2) LIMITED [2013] NZHC 2209

Leave to amend to add the claim for tax penalty overpayments (para 37(b)) is refused because the alleged negligence did not cause the tax penalty outcome (tax avoidance is assessed objectively and the same position would have arisen), and because allowing the amendment would prejudice the defendant and require an...

Source-derived case information.

Citation
[2013] NZHC 2209
Parties
First Plaintiff: BLACKMOUNT FORESTS LIMITED; Second Plaintiffs: BRUNEL PEAK FORESTS LIMITED & ORS; First Defendant: TRINITY FOUNDATION (SERVICES NO 2) LIMITED; Second Defendant: PGG WRIGHTSON LIMITED
Court
High Court
Jurisdiction
New Zealand
Judgment Date
28 August 2013
Procedural Posture
Civil Negligence and Contractual/tax Dispute / Application for Leave to Amend Pleadings; Pre Trial (trial Due 16 September 2013)
Outcome
Application for leave to amend Sixth amended Statement of Claim partly dismissed: amendment adding para 37(b) (penalties claim) refused; leave granted for all other proposed amendments in the marked-up Sixth amended Statement of Claim.
Legal Topics
Amendment of Pleadings, Causation, Limitation, Discovery, Pre‑trial Directions, Costs
Civil Procedure Tort (negligence) Tax Law Evidence Amendment of Pleadings Causation Limitation Discovery +2 more

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Parties

BLACKMOUNT FORESTS LIMITED

First Plaintiff

BRUNEL PEAK FORESTS LIMITED & ORS

Second Plaintiffs

TRINITY FOUNDATION (SERVICES NO 2) LIMITED

First Defendant

PGG WRIGHTSON LIMITED

Second Defendant

Procedural Posture

Civil Negligence and Contractual/tax Dispute / Application for Leave to Amend Pleadings; Pre Trial (trial Due 16 September 2013)

Legal Issues

  1. 1 Whether leave should be granted to amend Sixth amended Statement of Claim to add a head of damages for tax penalties
  2. 2 Whether alleged negligence by Wrightson caused the payment of penalties to the Commissioner (causation)
  3. 3 Whether the proposed amendment raises a new time‑barred cause of action

Ratio Decidendi

Leave to amend to add the claim for tax penalty overpayments (para 37(b)) is refused because the alleged negligence did not cause the tax penalty outcome (tax avoidance is assessed objectively and the same position would have arisen), and because allowing the amendment would prejudice the defendant and require an adjournment of the imminent trial; other proposed amendments were permitted.

Court Disposition

Application for leave to amend Sixth amended Statement of Claim partly dismissed: amendment adding para 37(b) (penalties claim) refused; leave granted for all other proposed amendments in the marked-up Sixth amended Statement of Claim.

Orders

  • Application for leave to amend to add para 37(b) dismissed
  • Leave granted for all other proposed amendments in the marked-up Sixth amended Statement of Claim