YOONWOO C & C DEVELOPMENT CORP v HUH [2019] NZHC 2986

YOONWOO C & C DEVELOPMENT CORP v HUH [2019] NZHC 2986

Summary judgment was set aside because the defendant established an arguable defence: it was reasonably arguable he was resident in New Zealand (not Korea) when proceedings commenced and that steps taken in his name in Korea were unauthorised so he did not submit to Korean jurisdiction; given the court’s duty under the Insolvency Act to be satisfied the debt exists 'in truth and reality', the bankruptcy adjudication could not proceed and the bankruptcy application was dismissed; costs for the summary judgment were awarded to the creditor and other interlocutory directions made.

Citation
[2019] NZHC 2986
Parties
Plaintiff/creditor: YOONWOO C & C DEVELOPMENT CORP; Defendant/judgment Debtor: JAE HO HUH
Court
High Court
Jurisdiction
New Zealand
Judgment Date
11 November 2019
Procedural Posture
Insolvency / Bankruptcy and Enforcement of Foreign Judgment / Application to Set Aside Summary Judgment and Creditor's Application to Adjudicate Debtor Bankrupt (oral Judgment on Applications)
Outcome
Summary judgment set aside; creditor's application to adjudicate debtor bankrupt dismissed
Legal Topics
Setting Aside Default/summary Judgment, Recognition and Enforcement of Foreign Judgments, Service and Substituted Service, Jurisdiction Recognition Rules (presence/residence or Submission), Bankruptcy Adjudication and 'truth and Reality' of Debt, Limitation Defence, Natural Justice

Case Brief

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Parties

YOONWOO C & C DEVELOPMENT CORP

Plaintiff/creditor

JAE HO HUH

Defendant/judgment Debtor

Procedural Posture

Insolvency / Bankruptcy and Enforcement of Foreign Judgment / Application to Set Aside Summary Judgment and Creditor's Application to Adjudicate Debtor Bankrupt (oral Judgment on Applications)

  1. 1 Whether summary judgment obtained in New Zealand should be set aside under High Court Rules r12.14
  2. 2 Whether South Korean conciliation-recorded orders are final enforceable judgments for New Zealand recognition purposes
  3. 3 Whether the defendant submitted to the jurisdiction of the South Korean court or was resident there when proceedings commenced

Ratio Decidendi

Summary judgment was set aside because the defendant established an arguable defence: it was reasonably arguable he was resident in New Zealand (not Korea) when proceedings commenced and that steps taken in his name in Korea were unauthorised so he did not submit to Korean jurisdiction; given the court’s duty under the Insolvency Act to be satisfied the debt exists 'in truth and reality', the bankruptcy adjudication could not proceed and the bankruptcy application was dismissed; costs for the summary judgment were awarded to the creditor and other interlocutory directions made.

Court Disposition

Summary judgment set aside; creditor's application to adjudicate debtor bankrupt dismissed

Orders

  • Summary judgment given 20 November 2018 is set aside
  • Creditor's application to adjudicate the defendant bankrupt is dismissed