GOWER v FTG SECURITIES LIMITED [2020] NZHC 1603

GOWER v FTG SECURITIES LIMITED [2020] NZHC 1603

The application to disqualify FTG's lawyers was dismissed as lacking merit and an abuse of process because it was made late, after issues had been previously raised and addressed, and there was no realistic prospect of contentious oral evidence; accordingly the Court awarded increased costs (50% uplift) under the...

Source-derived case information.

Citation
[2020] NZHC 1603
Parties
Applicant (receiver): Colin Anthony Gower; Applicant (receiver): Stephen John Tubbs; First Respondent: FTG Securities Limited; Second Respondent (liquidator): Robert Bruce Walker; Third Respondent: Bank of New Zealand; Fourth Respondent: Crown Asset Management; Fifth Respondent: B J Hunt
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 July 2020
Procedural Posture
Receivership Proceedings Under S 34 Receiverships Act 1993 / Judgment on Costs (post Interlocutory Ruling and Determination on Disqualification Application)
Outcome
Application to disqualify FTG's lawyers dismissed; second respondent ordered to pay first respondent's costs and filing fee.
Legal Topics
Disqualification of Counsel, Abuse of Process, Costs Uplift, Interlocutory Applications, Indemnity Vs Increased Costs
Civil Procedure Company Law Receivership Costs Law Disqualification of Counsel Abuse of Process Costs Uplift Interlocutory Applications +1 more

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Parties

Colin Anthony Gower

Applicant (receiver)

Stephen John Tubbs

Applicant (receiver)

FTG Securities Limited

First Respondent

Robert Bruce Walker

Second Respondent (liquidator)

Bank of New Zealand

Third Respondent

Crown Asset Management

Fourth Respondent

B J Hunt

Fifth Respondent

Procedural Posture

Receivership Proceedings Under S 34 Receiverships Act 1993 / Judgment on Costs (post Interlocutory Ruling and Determination on Disqualification Application)

Legal Issues

  1. 1 Whether the lawyers acting for FTG should be disqualified
  2. 2 Whether the disqualification application was an abuse of process
  3. 3 Whether increased costs (50% uplift) were appropriate

Ratio Decidendi

The application to disqualify FTG's lawyers was dismissed as lacking merit and an abuse of process because it was made late, after issues had been previously raised and addressed, and there was no realistic prospect of contentious oral evidence; accordingly the Court awarded increased costs (50% uplift) under the High Court Rules but declined indemnity costs as the conduct did not meet the higher threshold for indemnity.

Court Disposition

Application to disqualify FTG's lawyers dismissed; second respondent ordered to pay first respondent's costs and filing fee.

Orders

  • Application to disqualify counsel dismissed
  • Second respondent Robert Bruce Walker to pay first respondent FTG Securities Ltd costs of NZD 8,245.50