TANG v SUNBOW LIMITED [2019] NZHC 2703

TANG v SUNBOW LIMITED [2019] NZHC 2703

The Court granted specific interim restraint against the second defendant preventing disposition of the Kumeu and Sunnyhills properties until 5 December 2019 (or further order) because plaintiffs demonstrated sufficient connection to the assets and the balance of convenience favored preserving the assets pending the 4/5 December fixture; sale was only permitted if at market value supported by an independent valuation and sale proceeds were placed in the solicitors' trust account subject to secured parties' rights.

Citation
[2019] NZHC 2703
Parties
First Plaintiff: Jingqiu Tang; Second Plaintiff: Sunbow Group Limited; Third Plaintiff: Sunbow Investment Limited; First Defendant: Sunbow Limited; Second Defendant: Ying Zhong
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 October 2019
Procedural Posture
Civil Interim Injunction Application / Interim Hearing Before Duty Judge (17 October 2019)
Outcome
Interim injunctions issued by consent for a range of relief; separate interim restraint granted against the second defendant in respect of the Kumeu and Sunnyhills properties until 5 December 2019 (or further order) subject to conditions; disqualification applications adjourned to 4 December 2019.
Legal Topics
Interim Injunction, Asset Preservation, Restraint on Disposition of Property, Solicitor Disqualification (adjourned)
Civil Equity Property Injunctions Interim Injunction Asset Preservation Restraint on Disposition of Property Solicitor Disqualification (adjourned)

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Parties

Jingqiu Tang

First Plaintiff

Sunbow Group Limited

Second Plaintiff

Sunbow Investment Limited

Third Plaintiff

Sunbow Limited

First Defendant

Ying Zhong

Second Defendant

Procedural Posture

Civil Interim Injunction Application / Interim Hearing Before Duty Judge (17 October 2019)

Legal Issues

  1. 1 Whether interim orders should restrain disposition of two properties (Kumeu and Sunnyhills) pending hearing
  2. 2 Whether the two properties are company assets or personal property of the second defendant
  3. 3 Appropriate conditions for permitting any sale of those properties pending determination

Ratio Decidendi

The Court granted specific interim restraint against the second defendant preventing disposition of the Kumeu and Sunnyhills properties until 5 December 2019 (or further order) because plaintiffs demonstrated sufficient connection to the assets and the balance of convenience favored preserving the assets pending the 4/5 December fixture; sale was only permitted if at market value supported by an independent valuation and sale proceeds were placed in the solicitors' trust account subject to secured parties' rights.

Court Disposition

Interim injunctions issued by consent for a range of relief; separate interim restraint granted against the second defendant in respect of the Kumeu and Sunnyhills properties until 5 December 2019 (or further order) subject to conditions; disqualification applications adjourned to 4 December 2019.

Orders

  • By consent the interim orders annexed as Appendix A are made.
  • Second defendant is restrained from causing or permitting the sale or other disposition of the properties at 114 Pomona Road, Kumeu (RT NA1071/141) and 12 Suzetta Place, Sunnyhills (RT NA17C/854) until 5 December 2019 or further order of the Court.