LEEDS v RICHARDS [2016] NZHC 2314

LEEDS v RICHARDS [2016] NZHC 2314

The Court exercised its discretion under s8 to act in aid of the English Court and granted interim relief to enable the joint trustees to obtain documents relevant to the English bankruptcy, subject to independent review of privilege issues; the sealed English bankruptcy order should be treated as valid for the purposes of the s8 Request unless and until annulled in England, and privilege issues are to be resolved by an independent solicitor appointed to review files and report with costs and further directions reserved.

Citation
[2016] NZAR 1405
Parties
Applicant (joint Trustee): Michael Thomas Leeds; Applicant (joint Trustee): Nicholas Stewart Wood; First Respondent (bankrupt): Murray Richards; Second Respondent (solicitors): Steindle Williams Legal Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 September 2016
Procedural Posture
Insolvency (cross Border) Act 2006 S8 Application for Assistance to Foreign Insolvency Court / Hearing for Directions and Interim Orders (application Heard 22 Sep 2016; Reasons 29 Sep 2016)
Outcome
Application under s8 granted in part; interim orders made appointing an independent solicitor to inspect and report on solicitor files and to identify documents disclosable to joint trustees; costs and some matters reserved; leave to rescind if English bankruptcy annulled
Legal Topics
Recognition and Assistance Under Model Law/cross Border Act, Section 8 High Court Aid to Foreign Courts, Disclosure of Solicitor Files, Waiver and Scope of Legal Professional Privilege, Appointment of Independent Reviewer, Jurisdictional Challenge and Annulment
Insolvency Law Cross Border Insolvency Bankruptcy Civil Procedure Legal Professional Privilege Recognition and Assistance Under Model Law/cross Border Act Section 8 High Court Aid to Foreign Courts Disclosure of Solicitor Files +3 more

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Parties

Michael Thomas Leeds

Applicant (joint Trustee)

Nicholas Stewart Wood

Applicant (joint Trustee)

Murray Richards

First Respondent (bankrupt)

Steindle Williams Legal Limited

Second Respondent (solicitors)

Procedural Posture

Insolvency (cross Border) Act 2006 S8 Application for Assistance to Foreign Insolvency Court / Hearing for Directions and Interim Orders (application Heard 22 Sep 2016; Reasons 29 Sep 2016)

Legal Issues

  1. 1 Whether High Court should act in aid under s8 of the Insolvency (Cross-border) Act 2006 to assist an English bankruptcy proceeding
  2. 2 Whether alleged lack of English jurisdiction or alleged false affidavits by respondent prevents New Zealand Court from granting s8 relief
  3. 3 Whether documents held by New Zealand solicitors are disclosable to joint trustees given claims of legal professional privilege and who may waive privilege

Ratio Decidendi

The Court exercised its discretion under s8 to act in aid of the English Court and granted interim relief to enable the joint trustees to obtain documents relevant to the English bankruptcy, subject to independent review of privilege issues; the sealed English bankruptcy order should be treated as valid for the purposes of the s8 Request unless and until annulled in England, and privilege issues are to be resolved by an independent solicitor appointed to review files and report with costs and further directions reserved.

Court Disposition

Application under s8 granted in part; interim orders made appointing an independent solicitor to inspect and report on solicitor files and to identify documents disclosable to joint trustees; costs and some matters reserved; leave to rescind if English bankruptcy annulled

Orders

  • Appoint Michael Whale, Barrister and Solicitor of Auckland, as independent solicitor to review all files held by Steindle Williams Legal Ltd and relevant trust account records and determine documents in respect of which joint trustees may waive privilege
  • Mr Whale and Mr Steindle to confer; Mr Steindle to arrange delivery of all files (paper and electronic) to Mr Whale's office at agreed time; Mr Whale may consult Mr Steindle on privilege issues