GOWER AND GRACE [2020] NZHC 1605

GOWER AND GRACE [2020] NZHC 1605

The Court granted the extension because it was satisfied that excusing the receivers from lease liabilities for the specified period was likely to facilitate a sale of the business as a going concern and thus was in creditors' interests, that most landlords were unlikely to be materially prejudiced, and that service by email was justified given the demonstrated nexus between recipients and landlords.

Citation
[2020] NZHC 1605
Parties
Applicant (receiver/manager): Colin Anthony Latham Gower; Applicant (receiver/manager): Andrew James Grace; Respondents: Various landlords and property managers
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 July 2020
Procedural Posture
Application Under S 32 of the Receiverships Act 1993 (receivership Matters) / Interim Variation of Existing Exemption Order / Urgent Interlocutory Application
Outcome
Application granted on terms sought
Legal Topics
Extension of Receiver Immunity From Lease Liabilities, Dispensation of Service, Sale as a Going Concern, COVID 19 Related Commercial Relief
Insolvency/receivership Property/lease Law Civil Procedure Commercial Law Extension of Receiver Immunity From Lease Liabilities Dispensation of Service Sale as a Going Concern COVID 19 Related Commercial Relief

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Parties

Colin Anthony Latham Gower

Applicant (receiver/manager)

Andrew James Grace

Applicant (receiver/manager)

Various landlords and property managers

Respondents

Procedural Posture

Application Under S 32 of the Receiverships Act 1993 (receivership Matters) / Interim Variation of Existing Exemption Order / Urgent Interlocutory Application

Legal Issues

  1. 1 Whether receivers should be excused from liability for rent and other payments under leases for the period 30 June–31 July 2020
  2. 2 Whether service of the application can be dispensed with and effected by email
  3. 3 Whether granting the extension is in the creditors' interests by facilitating a sale as a going concern

Ratio Decidendi

The Court granted the extension because it was satisfied that excusing the receivers from lease liabilities for the specified period was likely to facilitate a sale of the business as a going concern and thus was in creditors' interests, that most landlords were unlikely to be materially prejudiced, and that service by email was justified given the demonstrated nexus between recipients and landlords.

Court Disposition

Application granted on terms sought

Orders

  • Service of this application and supporting affidavits is satisfied by email to the addresses listed in counsel's memorandum of 6 July 2020.
  • The applicants are excused from liability for rent and any other payments becoming due under leases of the premises at: (i) Barrington – Barrington Shopping Centre, 256 Barrington Street, Christchurch 8024; (ii) Bayfair – Shop 510 Bayfair Shopping Centre, corner of Mount Maunganui Road and Girven Road 3116; (iii)...