EATON & Anor V LDC FINANCE LIMITED HC CHCH CIV-2008-409-001140

EATON & Anor V LDC FINANCE LIMITED HC CHCH CIV-2008-409-001140

The court held the receivers acted reasonably in entering the settlement and granted directions to implement it including confidentiality of the receivers' application; the court further concluded there is power under ss59 (or s51) and ss64/64A Trustee Act 1956 and in equity to appoint or recognise Eaton and Marshall as trustees of the unsecured F&I depositors and authorised a limited procedure: required notice to depositors (letter and copy of judgment), a two‑week period for responses, and reserved formal trustee appointments and authorisations pending any responses and further reporting to the court.

Citation
openlaw-08159975_c06c_45d9_b4d5_778f508846b5.pdf
Parties
Plaintiff and Representative of Unsecured F&i Depositors: Stephen Desmond Eaton; Plaintiff and Representative of Unsecured F&i Depositors: Seddon James Marshall; First Defendant (company in Receivership): LDC Finance Limited; Second Defendant: PricewaterhouseCoopers; Third and Counterclaim Defendant: Perpetual Trust Limited; Fourth Defendant: Buddle Findlay; Second Counterclaim Defendant (partner of F&i): Andrew John Harding; Second Counterclaim Defendant (partner of F&i): Murray Scholfield; Receiver and Applicant: Richard Grant Simpson; Receiver and Applicant: Davidian Ruscoe
Court
High Court
Jurisdiction
New Zealand
Judgment Date
11 April 2013
Procedural Posture
Commercial Civil Litigation: Receivership, Trust and Settlement Approval / Applications for Court Directions: (a) Receivers Seeking Approval to Implement Confidential Settlement and Withdraw Appeal; (b) Trusteeship/authority Application by Plaintiffs to Be Appointed Trustees and Authorised to Settle and Distribute Funds; Interim Procedural Directions Issued
Outcome
Court granted the receivers' directions and confidentiality in respect of their application and ordered limited procedural directions as to trustee appointment application by Eaton and Marshall; final trustee appointments and authorisations were reserved pending beneficiary notice responses
Legal Topics
Appointment of Trustees Under Trustee Act 1956, Court Supervision of Receivers (receiverships Act 1993), Court Authorisation of Settlements and Dispositions of Choses in Action, Confidentiality of Court Files and Settlement Agreements, Application of Ss 59, 51, 64 and 64 a Trustee Act 1956
Trusts Receivership Civil Procedure Equity Commercial Litigation Appointment of Trustees Under Trustee Act 1956 Court Supervision of Receivers (receiverships Act 1993) Court Authorisation of Settlements and Dispositions of Choses in Action +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 6 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Stephen Desmond Eaton

Plaintiff and Representative of Unsecured F&i Depositors

Seddon James Marshall

Plaintiff and Representative of Unsecured F&i Depositors

LDC Finance Limited

First Defendant (company in Receivership)

PricewaterhouseCoopers

Second Defendant

Perpetual Trust Limited

Third and Counterclaim Defendant

Buddle Findlay

Fourth Defendant

Andrew John Harding

Second Counterclaim Defendant (partner of F&i)

Murray Scholfield

Second Counterclaim Defendant (partner of F&i)

Richard Grant Simpson

Receiver and Applicant

Davidian Ruscoe

Receiver and Applicant

Procedural Posture

Commercial Civil Litigation: Receivership, Trust and Settlement Approval / Applications for Court Directions: (a) Receivers Seeking Approval to Implement Confidential Settlement and Withdraw Appeal; (b) Trusteeship/authority Application by Plaintiffs to Be Appointed Trustees and Authorised to Settle and Distribute Funds; Interim Procedural Directions Issued

Legal Issues

  1. 1 Whether receivers acted reasonably in entering into the settlement and withdrawing the appeal
  2. 2 Whether the court should grant directions permitting implementation of the settlement and confidentiality of the application
  3. 3 Whether Eaton and Marshall can be appointed trustees under s59 or s51 Trustee Act 1956 to enable settlement and distribution to F&I depositors

Ratio Decidendi

The court held the receivers acted reasonably in entering the settlement and granted directions to implement it including confidentiality of the receivers' application; the court further concluded there is power under ss59 (or s51) and ss64/64A Trustee Act 1956 and in equity to appoint or recognise Eaton and Marshall as trustees of the unsecured F&I depositors and authorised a limited procedure: required notice to depositors (letter and copy of judgment), a two‑week period for responses, and reserved formal trustee appointments and authorisations pending any responses and further reporting to the court.

Court Disposition

Court granted the receivers' directions and confidentiality in respect of their application and ordered limited procedural directions as to trustee appointment application by Eaton and Marshall; final trustee appointments and authorisations were reserved pending beneficiary notice responses

Orders

  • Declared receivers (Simpson and Ruscoe) acted reasonably in entering the conditional settlement and withdrawing the appeal and directed them to proceed to confirm and implement the settlement on its terms
  • Ordered that the receivers' application file be kept confidential and that no person may search the court file in relation to that application without leave of a Judge given on at least 20 working days notice to the parties