BODY CORPORATE 68792 & ORS v MEMELINK & ORS [2015] NZHC 1731

BODY CORPORATE 68792 & ORS v MEMELINK & ORS [2015] NZHC 1731

Given entrenched polarisation, ongoing litigation threats, frozen bank account and inability of owners to function collectively, the Court found appointment of an administrator under s141 warranted and essential; Greenwood was appointed until 30 June 2016 with power to act to the exclusion of the body corporate and...

Source-derived case information.

Citation
[2015] NZHC 1731
Parties
First Applicant: Body Corporate 68792; Second Applicant: Synergy Enterprises Limited; Second Applicant: James McKernan; Second Applicant: Caroline McKernan; Second Applicant: Steven Scheckter; Second Applicant: Valda Scheckter; Second Applicant: Geoffrey Arden; First Respondent: Harry Memelink; First Respondent: Iantrevor Neill Hamilton; Second Respondent: Anthony Harry de Vries; Second Respondent: Geraldine de Vries; Third Respondent: Cudby & Meade Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
28 July 2015
Procedural Posture
Originating Application Under Section 141 of the Unit Titles Act 2010 / Final Hearing and Judgment on Application to Appoint an Administrator
Outcome
Application granted in part: permanent administrator appointed for a fixed term; costs awarded to applicants on a 2B basis; leave reserved to extend appointment and for administrator to seek directions
Legal Topics
Appointment of Administrator Under S141, Dysfunction of Body Corporate, Costs Allocation, Delegation of Administrator Powers, Recovery of Expenses S127
Unit Titles Law Property Law Civil Procedure Appointment of Administrator Under S141 Dysfunction of Body Corporate Costs Allocation Delegation of Administrator Powers Recovery of Expenses S127

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Parties

Body Corporate 68792

First Applicant

Synergy Enterprises Limited

Second Applicant

James McKernan

Second Applicant

Caroline McKernan

Second Applicant

Steven Scheckter

Second Applicant

Valda Scheckter

Second Applicant

Geoffrey Arden

Second Applicant

Harry Memelink

First Respondent

Iantrevor Neill Hamilton

First Respondent

Anthony Harry de Vries

Second Respondent

Geraldine de Vries

Second Respondent

Cudby & Meade Limited

Third Respondent

Procedural Posture

Originating Application Under Section 141 of the Unit Titles Act 2010 / Final Hearing and Judgment on Application to Appoint an Administrator

Legal Issues

  1. 1 Whether the Court should appoint an administrator under s141 of the Unit Titles Act 2010 due to dysfunction of the body corporate
  2. 2 Appropriate duration and terms of appointment including exclusion of the body corporate and committee under s141(5)
  3. 3 Whether respondents may be ordered to meet administration costs or expenses (s127)

Ratio Decidendi

Given entrenched polarisation, ongoing litigation threats, frozen bank account and inability of owners to function collectively, the Court found appointment of an administrator under s141 warranted and essential; Greenwood was appointed until 30 June 2016 with power to act to the exclusion of the body corporate and committee, his remuneration and expenses to be met from the operating account, the Court refused to direct specific owners to meet administration costs under s127, and awarded applicants costs on a 2B basis.

Court Disposition

Application granted in part: permanent administrator appointed for a fixed term; costs awarded to applicants on a 2B basis; leave reserved to extend appointment and for administrator to seek directions

Orders

  • Appointing John Paul Greenwood of Wellington, solicitor, as the administrator of Body Corporate 68792 until 30 June 2016.
  • Confirming that John Paul Greenwood, as administrator, to the exclusion of the body corporate and the body corporate committee may exercise all of the powers of Body Corporate 68792 and may operate the Body Corporate's bank account number: 01-0542-0081634-00 (ANZ, Lower Hutt Branch).