PLATEAU FARMS LIMITED (IN RECEIVERSHIP AND LIQUIDATION) V ELIZABETH MARY LAMBERT HC HAM CIV-2012-419-363

PLATEAU FARMS LIMITED (IN RECEIVERSHIP AND LIQUIDATION) V ELIZABETH MARY LAMBERT HC HAM CIV-2012-419-363

The $1 sale agreements were invalid and of no effect because the Crafar company directors did not have authority to sell assets that were subject to registered security and a receiver's mandate; the receivers' and secured parties' rights to manage and sell the farms prevail, entitling the plaintiffs to a declaration, permanent injunctions and removal of caveats.

Citation
openlaw-9d130c47_551f_403a_8a75_084ef8aadf97.pdf
Parties
First Plaintiff: Plateau Farms Limited (in receivership and liquidation); Second Plaintiff / Applicant: Hillside Limited (in receivership and liquidation); Third Plaintiff: Taharua Limited (in receivership and liquidation); Fourth Plaintiff: Ferryview Farms Limited (in receivership and liquidation); Defendant / Respondent: Elizabeth Mary Lambert
Court
High Court
Jurisdiction
New Zealand
Judgment Date
27 June 2012
Procedural Posture
Civil Proceedings Seeking Declaration and Permanent Injunctions (property/receivership) / High Court Judgment (final)
Outcome
Declaration that the sale and purchase agreements dated 27 August 2011 are invalid and of no effect; permanent injunctions granted against the defendant; specified caveats removed; applications for arrest and counterclaim adjourned; no order as to costs.
Legal Topics
Authority of Directors, Power of Sale by Receivers, Validity of Sale Agreements, Caveats, Removal of Caveats, Permanent Injunctions, Receivership
Property Law Company Law Insolvency Law Equity Land Transfer Authority of Directors Power of Sale by Receivers Validity of Sale Agreements +4 more

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Parties

Plateau Farms Limited (in receivership and liquidation)

First Plaintiff

Hillside Limited (in receivership and liquidation)

Second Plaintiff / Applicant

Taharua Limited (in receivership and liquidation)

Third Plaintiff

Ferryview Farms Limited (in receivership and liquidation)

Fourth Plaintiff

Elizabeth Mary Lambert

Defendant / Respondent

Procedural Posture

Civil Proceedings Seeking Declaration and Permanent Injunctions (property/receivership) / High Court Judgment (final)

Legal Issues

  1. 1 Whether directors of companies in receivership had authority to enter into $1 sale agreements
  2. 2 Whether the $1 agreements were otherwise void for uncertainty
  3. 3 Whether the receivers' and mortgagee's rights under security documents prevented the purported transfers

Ratio Decidendi

The $1 sale agreements were invalid and of no effect because the Crafar company directors did not have authority to sell assets that were subject to registered security and a receiver's mandate; the receivers' and secured parties' rights to manage and sell the farms prevail, entitling the plaintiffs to a declaration, permanent injunctions and removal of caveats.

Court Disposition

Declaration that the sale and purchase agreements dated 27 August 2011 are invalid and of no effect; permanent injunctions granted against the defendant; specified caveats removed; applications for arrest and counterclaim adjourned; no order as to costs.

Orders

  • Declaration that the sale and purchase agreements dated 27 August 2011 between the directors of the plaintiffs and the defendant are invalid and of no effect
  • Permanent injunction restraining the defendant from lodging or attempting to lodge any caveats against the titles to the Crafar farms