PARKBROOK HOLDINGS LTD AND ORS V GOULD AND ANOR HC AK CIV 2004-404-3957

PARKBROOK HOLDINGS LTD AND ORS V GOULD AND ANOR HC AK CIV 2004-404-3957

The defendant admitted negligence in advising and acting in relation to the Gitmans caveats but the negligent conduct did not cause delay beyond 19 April 2002 when funds were available; accordingly damages were limited to losses caused by delay from 19 April 2002 (interest to 3 May 2002) together with interest to Mrs Alexander, recoverable legal fees and a quantifiable capital loss measured as the shortfall between mortgagee sale receipts and reasonable sale prices to Alexander interests (based on Seagar valuations), quantified at $311,111; Lesnam's admitted loss of $8,300 was also awarded with interest.

Citation
openlaw-5147b062_3826_4e77_b5ad_ffe1670c1065.pdf
Parties
Second Plaintiff: Parkbrook Holdings Limited (in receivership and in liquidation); Third Plaintiff: Lesnam Holdings Limited; Fourth Plaintiff: Fifer Residential Limited; First Defendant: Kevin Francis Gould; Second Defendant: Dennis Michael Graham
Court
High Court
Jurisdiction
New Zealand
Judgment Date
1 November 2006
Procedural Posture
Civil Professional Negligence and Property Dispute / Judgment (damages Assessment)
Outcome
Judgment for plaintiffs in part against first defendant (Gould) on admitted negligence; damages awarded as set out and Lesnam awarded its admitted sum.
Legal Topics
Caveats, Removal of Caveat, Mortgagee Sale, Damages, Interest, Causation, Costs
Professional Negligence Property Law Equity Civil Procedure Company Law Trusts Caveats Removal of Caveat +5 more

Case Brief

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Parties

Parkbrook Holdings Limited (in receivership and in liquidation)

Second Plaintiff

Lesnam Holdings Limited

Third Plaintiff

Fifer Residential Limited

Fourth Plaintiff

Kevin Francis Gould

First Defendant

Dennis Michael Graham

Second Defendant

Procedural Posture

Civil Professional Negligence and Property Dispute / Judgment (damages Assessment)

Legal Issues

  1. 1 Whether defendant solicitor negligently failed to advise that caveats were uncaveatable
  2. 2 Whether and when the plaintiffs would have been able to remove the caveats absent negligence
  3. 3 Causation and remoteness of claimed losses including interest and capital loss from mortgagee sale

Ratio Decidendi

The defendant admitted negligence in advising and acting in relation to the Gitmans caveats but the negligent conduct did not cause delay beyond 19 April 2002 when funds were available; accordingly damages were limited to losses caused by delay from 19 April 2002 (interest to 3 May 2002) together with interest to Mrs Alexander, recoverable legal fees and a quantifiable capital loss measured as the shortfall between mortgagee sale receipts and reasonable sale prices to Alexander interests (based on Seagar valuations), quantified at $311,111; Lesnam's admitted loss of $8,300 was also awarded with interest.

Court Disposition

Judgment for plaintiffs in part against first defendant (Gould) on admitted negligence; damages awarded as set out and Lesnam awarded its admitted sum.

Orders

  • Judgment for Parkbrook: interest totalling $159,274
  • Judgment for Parkbrook: legal fees totaling $68,946