100 INVESTMENTS LTD v WALKER [2023] NZHC 2584

LPF failed to satisfy the threshold under r 5.45(1) in respect of Mr Whitley because it produced no evidence from which to infer he could not pay costs; although the PVL companies are insolvent, because the plaintiffs are likely to be jointly and severally liable and a non-qualifying plaintiff (Mr Whitley) could meet costs, no security should be ordered against any plaintiffs despite the presence of a litigation funder.

Citation: [2023] NZHC 2584
Parties: First Plaintiff (civ 2019 404 1160); First Defendant (civ 2022 404 274): 100 Investments Ltd; First Defendant (civ 2019 404 1160); Fifth Defendant (civ 2022 404 274): Robert Bruce Walker; Second Plaintiff (civ 2019 404 1160); Second Defendant (civ 2022 404 274): FTG Securities Ltd; Third Plaintiff (civ 2019 404 1160); Third Defendant (civ 2022 404 274): RFD Finance Ltd; Fourth Plaintiff (civ 2019 404 1160); Fourth Defendant (civ 2022 404 274): Tomanovich Holdings Ltd; Second Defendant (civ 2019 404 1160); Sixth Defendant (civ 2022 404 274): John Marshall Scutter; Third Defendant (civ 2019 404 1160); Seventh Defendant (civ 2022 404 274): LPF Group Ltd; Fourth Defendant (civ 2019 404 1160); Eighth Defendant (civ 2022 404 274): SPF No 10 Ltd (In Liquidation); First Plaintiff (civ 2022 404 274); Liquidator (pvl Companies): Kevin John Whitley; Second Plaintiff (civ 2022 404 274): Property Ventures Ltd (In Liquidation); Third Plaintiff (civ 2022 404 274): Five Mile Holdings Ltd (In Liquidation); Fourth Plaintiff (civ 2022 404 274): Cashel Ventures Ltd (In Receivership and Liquidation); Fifth Plaintiff (civ 2022 404 274): Tay Ventures Ltd (In Receivership and Liquidation); Sixth Plaintiff (civ 2022 404 274): Livingspace Properties Ltd (In Liquidation); Seventh Plaintiff (civ 2022 404 274): Beechnest Ventures Ltd (In Liquidation); Eighth Plaintiff (civ 2022 404 274): Castle Street Ventures Ltd (In Liquidation); Ninth Plaintiff (civ 2022 404 274): Lichfield Ventures Ltd (In Liquidation); Tenth Plaintiff (civ 2022 404 274): 92 Lichfield Ltd (In Receivership and Liquidation); Eleventh Plaintiff (civ 2022 404 274): St Asaph Ventures Ltd (In Liquidation); Twelfth Plaintiff (civ 2022 404 274): Montecristo Construction Company Ltd (In Liquidation); Thirteenth Plaintiff (civ 2022 404 274): Tuam Ventures Ltd (In Liquidation)
Court: High Court
Jurisdiction: New Zealand
Judgment Date: 15 September 2023
Procedural Posture: Consolidated Civil Proceedings (interlocutory Application) / Application for Security for Costs Under R 5.45 High Court Rules; Interlocutory Determination Declining Security
Outcome: LPF's application for security for costs declined; plaintiffs awarded costs on the application
Legal Topics: Security for Costs, Liquidation, Litigation Funding, Joint and Several Liability, High Court Rules R 5.45

Civil Procedure Company Law Insolvency Costs Law Security for Costs Liquidation Litigation Funding Joint and Several Liability +1 more

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Full judgment text Legal principles 4 Authorities cited 9 Party arguments 2 Amounts and remedies 2

Parties

100 Investments Ltd

First Plaintiff (civ 2019 404 1160); First Defendant (civ 2022 404 274)

Robert Bruce Walker

First Defendant (civ 2019 404 1160); Fifth Defendant (civ 2022 404 274)

FTG Securities Ltd

Second Plaintiff (civ 2019 404 1160); Second Defendant (civ 2022 404 274)

RFD Finance Ltd

Third Plaintiff (civ 2019 404 1160); Third Defendant (civ 2022 404 274)

Tomanovich Holdings Ltd

Fourth Plaintiff (civ 2019 404 1160); Fourth Defendant (civ 2022 404 274)

John Marshall Scutter

Second Defendant (civ 2019 404 1160); Sixth Defendant (civ 2022 404 274)

LPF Group Ltd

Third Defendant (civ 2019 404 1160); Seventh Defendant (civ 2022 404 274)

SPF No 10 Ltd (In Liquidation)

Fourth Defendant (civ 2019 404 1160); Eighth Defendant (civ 2022 404 274)

Kevin John Whitley

First Plaintiff (civ 2022 404 274); Liquidator (pvl Companies)

Property Ventures Ltd (In Liquidation)

Second Plaintiff (civ 2022 404 274)

Five Mile Holdings Ltd (In Liquidation)

Third Plaintiff (civ 2022 404 274)

Cashel Ventures Ltd (In Receivership and Liquidation)

Fourth Plaintiff (civ 2022 404 274)

Tay Ventures Ltd (In Receivership and Liquidation)

Fifth Plaintiff (civ 2022 404 274)

Livingspace Properties Ltd (In Liquidation)

Sixth Plaintiff (civ 2022 404 274)

Beechnest Ventures Ltd (In Liquidation)

Seventh Plaintiff (civ 2022 404 274)

Castle Street Ventures Ltd (In Liquidation)

Eighth Plaintiff (civ 2022 404 274)

Lichfield Ventures Ltd (In Liquidation)

Ninth Plaintiff (civ 2022 404 274)

92 Lichfield Ltd (In Receivership and Liquidation)

Tenth Plaintiff (civ 2022 404 274)

St Asaph Ventures Ltd (In Liquidation)

Eleventh Plaintiff (civ 2022 404 274)

Montecristo Construction Company Ltd (In Liquidation)

Twelfth Plaintiff (civ 2022 404 274)

Tuam Ventures Ltd (In Liquidation)

Thirteenth Plaintiff (civ 2022 404 274)

Procedural Posture

Consolidated Civil Proceedings (interlocutory Application) / Application for Security for Costs Under R 5.45 High Court Rules; Interlocutory Determination Declining Security

Legal Issues

1 Whether there was reason to believe plaintiffs would be unable to pay defendant's costs (threshold under r 5.45(1))
2 Whether it would be just to order security for costs (discretion under r 5.45(2))
3 Whether security should be ordered where some plaintiffs qualify and others do not (multi-plaintiff/joint and several liability issue)

Ratio Decidendi

Court Disposition

LPF's application for security for costs declined; plaintiffs awarded costs on the application

Orders

LPF's application for security for costs under r 5.45 declined
Plaintiffs entitled to costs on the application