CLARKSON AND ANOR V WHANGAMATA METAL SUPPLIES LIMITED AND ANOR HC AK CIV 2003-404-006869

CLARKSON AND ANOR V WHANGAMATA METAL SUPPLIES LIMITED AND ANOR HC AK CIV 2003-404-006869

Measure of damages was contractual: award damages representing PMS' lost net profit and proved losses caused by seven month delay; court adjusted starting profit for specific items, deducted net borrowing costs and amortised procuration fees, and awarded PMS NZD 495,071 (subject to plant adjustment), with simple interest at 12% p.a. from 31 May 2004; most disputed plant passed under the agreement except three specified items; plaintiffs entitled to declarations on encroachment and indemnity for costs to resolve it with DOC.

Citation
openlaw-ef0d832a_8f16_4efe_ab5a_fea3ee0fdaad.pdf
Parties
First Plaintiff: Geoffrey Wayne Clarkson; Second Plaintiff: Peninsula Metal Supplies Limited; First Defendant: Whangamata Metal Supplies Limited; Second Defendants: Desmond Howard Rea and Lynette Mary Rea
Court
High Court
Jurisdiction
New Zealand
Judgment Date
8 June 2006
Procedural Posture
Contract (specific Performance and Damages) / Judgment (trial)
Outcome
Judgment for plaintiffs in part; damages awarded and declarations made
Legal Topics
Specific Performance, Damages for Delayed Settlement, Constructive Trust, Misrepresentation (half Truth), Fair Trading Act, Implied Terms, Resource Consent/compliance, Encroachment, Plant and Equipment Ownership, Interest on Damages, Guarantee
Contract Equity Property Law Commercial Law Civil Remedies Specific Performance Damages for Delayed Settlement Constructive Trust +8 more

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Parties

Geoffrey Wayne Clarkson

First Plaintiff

Peninsula Metal Supplies Limited

Second Plaintiff

Whangamata Metal Supplies Limited

First Defendant

Desmond Howard Rea and Lynette Mary Rea

Second Defendants

Procedural Posture

Contract (specific Performance and Damages) / Judgment (trial)

Legal Issues

  1. 1 Appropriate measure of damages (equitable vs contractual) for delay following specific performance
  2. 2 Liability of vendor as constructive trustee for acts during possession (wage increases, directors' salaries, repairs)
  3. 3 Treatment of accrued holiday pay in profit calculation

Ratio Decidendi

Measure of damages was contractual: award damages representing PMS' lost net profit and proved losses caused by seven month delay; court adjusted starting profit for specific items, deducted net borrowing costs and amortised procuration fees, and awarded PMS NZD 495,071 (subject to plant adjustment), with simple interest at 12% p.a. from 31 May 2004; most disputed plant passed under the agreement except three specified items; plaintiffs entitled to declarations on encroachment and indemnity for costs to resolve it with DOC.

Court Disposition

Judgment for plaintiffs in part; damages awarded and declarations made

Orders

  • Judgment for the plaintiffs in the sum of NZD 495071 subject to any adjustment arising from the declaration in relation to plant
  • Interest on the judgment sum at the rate of 12% per annum from 31 May 2004 to the date of payment (simple interest)