ACTION MEDIA LIMITED (IN LIQUIDATION) v LEVIN AND MADSEN-RIES AS LIQUIDATORS OF ACTION MEDIA LIMITED (IN LIQUIDATION) [2016] NZHC 2555

ACTION MEDIA LIMITED (IN LIQUIDATION) v LEVIN AND MADSEN-RIES AS LIQUIDATORS OF ACTION MEDIA LIMITED (IN LIQUIDATION) [2016] NZHC 2555

Costs were allocated by applying the principle that costs follow the event but adjusting for partial success and discontinuance: costs lie where they fall in respect of issues in the December judgment overall; plaintiffs awarded $1,338 for costs attributable to the defendants' discontinued strike‑out application (20% of plaintiffs' pre‑discontinuance costs); defendants awarded $2,899 for the successful adjournment application because plaintiffs failed to provide supplementary discovery on time; plaintiffs' award to be set off against defendants' award pursuant to r14.17.

Citation
[2016] NZHC 2555
Parties
First Plaintiff: Action Media Limited (In Liquidation); Second Plaintiffs: Henry David Levin and Vivien Judith Madsen-Ries as Liquidators of Action Media Limited (In Liquidation); First Defendant: Sean Wesley Mitchell; Second Defendant: Farry & Co Trustees Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
26 October 2016
Procedural Posture
Company Liquidation Proceedings Under the Companies Act 1993 / Costs Determination Following Interlocutory Hearings and Adjournment Application
Outcome
Costs awarded partially for plaintiffs (discontinued strike‑out) and for defendants (adjournment); costs otherwise lie where they fall for the interlocutory hearing leading to the December judgment; set‑off to apply
Legal Topics
Liquidation, Director's Duties, Insolvent Transactions (ss 294, 295), Recovery of Director/shareholder Benefits (ss 161, 56), Discovery Obligations (s 261), Directions Under S 286, Adjournment, Strike‑out Application, Costs Allocation
Company Law Insolvency Law Civil Procedure Evidence and Discovery Costs Law Liquidation Director's Duties Insolvent Transactions (ss 294,295) +6 more

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Parties

Action Media Limited (In Liquidation)

First Plaintiff

Henry David Levin and Vivien Judith Madsen-Ries as Liquidators of Action Media Limited (In Liquidation)

Second Plaintiffs

Sean Wesley Mitchell

First Defendant

Farry & Co Trustees Limited

Second Defendant

Procedural Posture

Company Liquidation Proceedings Under the Companies Act 1993 / Costs Determination Following Interlocutory Hearings and Adjournment Application

Legal Issues

  1. 1 Whether discovery of all s 261 notices was required
  2. 2 Whether correspondence regarding the creditor's compromise was discoverable
  3. 3 Whether correspondence relating to the director's personal compromise was discoverable

Ratio Decidendi

Costs were allocated by applying the principle that costs follow the event but adjusting for partial success and discontinuance: costs lie where they fall in respect of issues in the December judgment overall; plaintiffs awarded $1,338 for costs attributable to the defendants' discontinued strike‑out application (20% of plaintiffs' pre‑discontinuance costs); defendants awarded $2,899 for the successful adjournment application because plaintiffs failed to provide supplementary discovery on time; plaintiffs' award to be set off against defendants' award pursuant to r14.17.

Court Disposition

Costs awarded partially for plaintiffs (discontinued strike‑out) and for defendants (adjournment); costs otherwise lie where they fall for the interlocutory hearing leading to the December judgment; set‑off to apply

Orders

  • Plaintiffs to receive costs of NZD 1338 in respect of the discontinued strike‑out application
  • Defendants to receive costs of NZD 2899 in respect of their successful adjournment application