GLW GROUP LTD v LEPIONKA & COMPANY INVESTMENTS LTD [2017] NZHC 491

GLW GROUP LTD v LEPIONKA & COMPANY INVESTMENTS LTD [2017] NZHC 491

The Court declined to order an interim sale and refused to restore possession of Lot 4 because preserving the status quo and avoiding predetermination of the central trial issue (the enforceability of the Lepionka agreements) better served the balance of convenience and overall justice; accordingly LCIL was restrained from settling the Lepionka agreements and from disposing, further encumbering, borrowing against or incurring further costs relating to the land, and was ordered to return plaintiffs' property and to give a written undertaking regarding documents.

Citation
[2017] NZHC 491
Parties
First Plaintiff: GLW Group Limited; Second Plaintiff: Garth Bowkett Paterson; First Defendant: Lepionka & Company Investments Limited; Second Defendant: Lepionka & Company Limited; Third Defendant: Stefan Jozef John Lepionka; Third Defendant: Nigel Warren Hughes
Court
High Court
Jurisdiction
New Zealand
Judgment Date
17 March 2017
Procedural Posture
Civil Property and Contract Dispute (high Court) / Interlocutory Application for Interim Relief Pending Trial (two Week Trial Fixed)
Outcome
Interlocutory relief granted in part: restrained LCIL from settling the Lepionka agreements and from disposing/further encumbering/borrowing/incurring costs relating to the land; defendants ordered to return plaintiffs' property and to provide a written undertaking regarding documents; application for sale and...
Legal Topics
Interim Injunction, Sale of Land, Mortgagee Duties and Adoption of Contracts, Possession, Redemption of Mortgage, Balance of Convenience, Undertaking in Damages
Property Law Contract Equity and Trusts Civil Procedure Mortgage Law Interim Injunction Sale of Land Mortgagee Duties and Adoption of Contracts +4 more

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Parties

GLW Group Limited

First Plaintiff

Garth Bowkett Paterson

Second Plaintiff

Lepionka & Company Investments Limited

First Defendant

Lepionka & Company Limited

Second Defendant

Stefan Jozef John Lepionka

Third Defendant

Nigel Warren Hughes

Third Defendant

Procedural Posture

Civil Property and Contract Dispute (high Court) / Interlocutory Application for Interim Relief Pending Trial (two Week Trial Fixed)

Legal Issues

  1. 1 Whether the Court should order an interim sale of the land to a third party
  2. 2 Whether LCIL should be restrained from settling the Lepionka agreements or disposing/encumbering the land pending trial
  3. 3 Whether the second plaintiff should be restored to possession of the Lodge on Lot 4

Ratio Decidendi

The Court declined to order an interim sale and refused to restore possession of Lot 4 because preserving the status quo and avoiding predetermination of the central trial issue (the enforceability of the Lepionka agreements) better served the balance of convenience and overall justice; accordingly LCIL was restrained from settling the Lepionka agreements and from disposing, further encumbering, borrowing against or incurring further costs relating to the land, and was ordered to return plaintiffs' property and to give a written undertaking regarding documents.

Court Disposition

Interlocutory relief granted in part: restrained LCIL from settling the Lepionka agreements and from disposing/further encumbering/borrowing/incurring costs relating to the land; defendants ordered to return plaintiffs' property and to provide a written undertaking regarding documents; application for sale and...

Orders

  • Pending further order of the Court, LCIL is restrained from settling the Lepionka agreements
  • Pending further order of the Court, LCIL is restrained from disposing of or further encumbering the land or borrowing or incurring further costs relating to the land