COMPASS CAPITAL LIMITED AND ANOR V UCTA FINANCE LIMITED AND ANOR HC AK CIV-2007-404-006506

COMPASS CAPITAL LIMITED AND ANOR V UCTA FINANCE LIMITED AND ANOR HC AK CIV-2007-404-006506

The interim restraining orders made on 24 October 2007 were continued until 5 November 2007 because the first plaintiff's undertaking as to damages, supported by its filed financial statement showing a surplus of $310,017 as at June 2007, was sufficient to cover the likely short-term loss (interest) to defendants and the balance of convenience favoured maintaining the status quo; it was unnecessary to decide whether a receiver can be personally bound by a receivership company's undertaking under s 30 of the Receivership Act 1993.

Citation
openlaw-60e75526_e105_4a1d_adcf_9e6f393c9607.pdf
Parties
First Plaintiff: Compass Capital Limited; Second Plaintiff (in Receivership): Bridgecorp Limited (in receivership); First Defendant: UCTA Finance Limited; Second Defendant: West Auckland Residential Developments Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
30 October 2007
Procedural Posture
Interim Injunction Application Civil / Interim Hearing (duty Judge List)
Outcome
Interim restraining orders continued until 5 November 2007; timetable varied; costs awarded against plaintiffs for recalled hearings
Legal Topics
Interim Restraining Orders, Undertaking as to Damages, Receivers' Personal Liability, Balance of Convenience, Timetabling Orders, Costs
Civil Procedure Injunctions Receivership Law Property Law Equity Interim Restraining Orders Undertaking as to Damages Receivers' Personal Liability +3 more

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Parties

Compass Capital Limited

First Plaintiff

Bridgecorp Limited (in receivership)

Second Plaintiff (in Receivership)

UCTA Finance Limited

First Defendant

West Auckland Residential Developments Limited

Second Defendant

Procedural Posture

Interim Injunction Application Civil / Interim Hearing (duty Judge List)

Legal Issues

  1. 1 Whether interim restraining orders should remain in force until 5 November 2007
  2. 2 Whether an undertaking as to damages given by a company in receivership and signed by its receiver can impose personal liability on the receiver
  3. 3 Whether the undertakings provided are of sufficient worth to protect defendants during the interim period

Ratio Decidendi

The interim restraining orders made on 24 October 2007 were continued until 5 November 2007 because the first plaintiff's undertaking as to damages, supported by its filed financial statement showing a surplus of $310,017 as at June 2007, was sufficient to cover the likely short-term loss (interest) to defendants and the balance of convenience favoured maintaining the status quo; it was unnecessary to decide whether a receiver can be personally bound by a receivership company's undertaking under s 30 of the Receivership Act 1993.

Court Disposition

Interim restraining orders continued until 5 November 2007; timetable varied; costs awarded against plaintiffs for recalled hearings

Orders

  • Interim restraining orders preventing the first defendant from exercising its power of sale in respect of the Mcleods Road, Te Atatu land and preventing the second defendant from alienating that land to any third party to remain in force until 5 November 2007.
  • Timetabling direction varied: defendants to file affidavits in support of the notice of opposition by noon on 31 October 2007.