PRIMA TECHNOLOGIES LTD (IN LIQUIDATION) AND ANOR V KMQ INC AND ANOR HC AK CIV-2010-404-001116

PRIMA TECHNOLOGIES LTD (IN LIQUIDATION) AND ANOR V KMQ INC AND ANOR HC AK CIV-2010-404-001116

Because the litigation in respect of the first cause of action is brought by a company in liquidation and appears to be funded for the benefit of a single creditor, the court ordered security for costs limited to the first cause of action, fixed at $30,000 with staged payment ($15,000 now and the balance on the...

Source-derived case information.

Citation
openlaw-a9246e26_1444_4728_addc_c8c28d86c4e2.pdf
Parties
First Plaintiff: Prima Technologies Ltd (In Liquidation); Second Plaintiff: D Nair; Second Defendant: KMQ Inc; Third Defendant: K Quinn
Court
High Court
Jurisdiction
New Zealand
Judgment Date
30 November 2010
Procedural Posture
Civil (high Court) Company Liquidation Proceedings / Interim Application for Security for Costs and Strike Out Reconsideration
Outcome
Application for security for costs granted in part; security fixed at $30,000 for the first cause of action; other aspects of the proceeding remain.
Legal Topics
Security for Costs, Liquidator Personal Liability, Stay of Proceedings, Costs Orders, Third Party Litigation Funding
Civil Procedure Company Law Insolvency Costs Security for Costs Liquidator Personal Liability Stay of Proceedings Costs Orders +1 more

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Parties

Prima Technologies Ltd (In Liquidation)

First Plaintiff

D Nair

Second Plaintiff

KMQ Inc

Second Defendant

K Quinn

Third Defendant

Procedural Posture

Civil (high Court) Company Liquidation Proceedings / Interim Application for Security for Costs and Strike Out Reconsideration

Legal Issues

  1. 1 Whether security for costs should be ordered against a company in liquidation for the first cause of action
  2. 2 Whether the liquidator should accept personal liability for costs in order to avoid security
  3. 3 Appropriate quantum of security for costs

Ratio Decidendi

Because the litigation in respect of the first cause of action is brought by a company in liquidation and appears to be funded for the benefit of a single creditor, the court ordered security for costs limited to the first cause of action, fixed at $30,000 with staged payment ($15,000 now and the balance on the matter being set down), and imposed a stay of the first cause of action if security is not provided; costs of the application were ordered against the first plaintiff on a 2B basis.

Court Disposition

Application for security for costs granted in part; security fixed at $30,000 for the first cause of action; other aspects of the proceeding remain.

Orders

  • Security for costs fixed at NZD 30000 for the first cause of action
  • NZD 15000 to be paid into Court immediately