AUTO FINANCE DIRECT LIMITED v MORTON [2019] NZHC 664

AUTO FINANCE DIRECT LIMITED v MORTON [2019] NZHC 664

The Court was satisfied on the evidence that none of the s162 grounds were made out: there was no adequate evidence or judgment establishing a set-off sufficient to extinguish obligations; the DME, as a replacement part attached to the vehicle, fell within the collateral description; accordingly registration of the applicant's financing statement was maintained under s167 PPSA.

Citation
[2019] NZHC 664
Parties
Applicant/secured Party: Auto Finance Direct Limited; Respondent/debtor: Bridget Morton
Court
High Court
Jurisdiction
New Zealand
Judgment Date
2 April 2019
Procedural Posture
PPSA S167 Application to Maintain Registration of Financing Statement / Substantive Hearing and Judgment
Outcome
Registration of financing statement maintained
Legal Topics
Change Demand S162, Maintenance of Financing Statement S167, Set Off Under Consumer Guarantees Act, Collateral Description, Accessions and Priority
Personal Property Securities Consumer Law Contract Law Civil Procedure Change Demand S162 Maintenance of Financing Statement S167 Set Off Under Consumer Guarantees Act Collateral Description +1 more

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Parties

Auto Finance Direct Limited

Applicant/secured Party

Bridget Morton

Respondent/debtor

Procedural Posture

PPSA S167 Application to Maintain Registration of Financing Statement / Substantive Hearing and Judgment

Legal Issues

  1. 1 Whether any grounds under s162 PPSA (a),(c),(e) exist to justify registration of a change demand
  2. 2 Whether set-off/claims under the Consumer Guarantees Act extinguished obligations under the security
  3. 3 Whether the DME replacement unit is collateral under the security agreement

Ratio Decidendi

The Court was satisfied on the evidence that none of the s162 grounds were made out: there was no adequate evidence or judgment establishing a set-off sufficient to extinguish obligations; the DME, as a replacement part attached to the vehicle, fell within the collateral description; accordingly registration of the applicant's financing statement was maintained under s167 PPSA.

Court Disposition

Registration of financing statement maintained

Orders

  • Order that registration of Auto Finance Direct Limited's financing statement in respect of BMW GLT 734 VIN WBAVA76050NK12377 be maintained
  • Costs reserved; timetable for costs memoranda: applicant by 19 April 2019, respondent by 3 May 2019, reply by 10 May 2019