KRUKZIENER V HANOVER FINANCE LTD HC AK CIV-2007-404-002896

KRUKZIENER V HANOVER FINANCE LTD HC AK CIV-2007-404-002896

Contractual post-judgment interest at 18% p.a. compounding monthly is payable from the date of judgment until payment, but where the judgment debtor is adjudicated bankrupt interest recoverable in insolvency is limited to the date of adjudication under s94(2) Insolvency Act 1967; the contractual rate was not unconscionable in the commercial lending context.

Citation
openlaw-1d6e48c4_0556_4db8_a57b_d002e05350c0.pdf
Parties
Judgment Debtor: Andrew Mark Krukziener; Judgment Creditor: Hanover Finance Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
19 February 2009
Procedural Posture
Judgment Enforcement and Bankruptcy Adjudication Application / Post Judgment Application; Judgment Reserved and Delivered 19 February 2009
Outcome
Ordered interest at 18% p.a. compounding monthly from date of judgment until payment or until date of adjudication if bankruptcy occurs; adjudication application adjourned to Duty Judge list 4 March 2009 at 11:45 am; no order as to costs.
Legal Topics
Post Judgment Interest, Bankruptcy Adjudication, Contractual Default Interest Rate, Section 94(2) Insolvency Act 1967
Insolvency Civil Procedure Contract Debt Enforcement Post Judgment Interest Bankruptcy Adjudication Contractual Default Interest Rate Section 94(2) Insolvency Act 1967

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Parties

Andrew Mark Krukziener

Judgment Debtor

Hanover Finance Limited

Judgment Creditor

Procedural Posture

Judgment Enforcement and Bankruptcy Adjudication Application / Post Judgment Application; Judgment Reserved and Delivered 19 February 2009

Legal Issues

  1. 1 Whether contractual default interest rate of 18% p.a. may run on a judgment debt until payment
  2. 2 Whether application of contractual rate would be unconscionable
  3. 3 Effect of Rule 11.27 High Court Rules and s87 Judicature Act 1908 on post-judgment interest rate

Ratio Decidendi

Contractual post-judgment interest at 18% p.a. compounding monthly is payable from the date of judgment until payment, but where the judgment debtor is adjudicated bankrupt interest recoverable in insolvency is limited to the date of adjudication under s94(2) Insolvency Act 1967; the contractual rate was not unconscionable in the commercial lending context.

Court Disposition

Ordered interest at 18% p.a. compounding monthly from date of judgment until payment or until date of adjudication if bankruptcy occurs; adjudication application adjourned to Duty Judge list 4 March 2009 at 11:45 am; no order as to costs.

Orders

  • Interest payable on the principal judgment amount at 18% per annum, compounding monthly, from date of judgment to date of payment or, if the judgment debtor is adjudicated bankrupt before payment, to the date of adjudication.
  • Adjourned Hanover's application for adjudication to the Duty Judge list on 4 March 2009 at 11:45 am.