HULL v CALVERT [2019] NZHC 154

HULL v CALVERT [2019] NZHC 154

The Court granted an order for sale of the whole land notwithstanding the charging order strictly covered only the debtor's legal interest because exceptional circumstances (debtor overseas, land abandoned, rates unpaid, preservation of asset value and maximising sale price) justified directing sale of the entire...

Source-derived case information.

Citation
[2019] NZHC 154
Parties
Judgment Creditor: David Mark Hull; Michelle Karen Hull; Trustee Management Limited; Judgment Debtor: John Barry Calvert
Court
High Court
Jurisdiction
New Zealand
Judgment Date
14 February 2019
Procedural Posture
Enforcement of Judgment (charging Order and Sale of Land) / Application for Sale of Charged Land Under High Court Rules Following Charging Order
Outcome
Sale order granted: Sheriff authorised to seize and sell the land and chattels of the judgment debtor; title not altered or vested at this stage; specified priorities and holding of proceeds with two month claim period for potential co-owners; sale subject to purchaser granting easement to Top Energy Ltd.
Legal Topics
Charging Order, Sale of Land, Vesting/title Alteration, Inherent Jurisdiction, Substituted Service
Property Law Trusts Civil Enforcement Land Transfer Law Charging Order Sale of Land Vesting/title Alteration Inherent Jurisdiction +1 more

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Parties

David Mark Hull; Michelle Karen Hull; Trustee Management Limited

Judgment Creditor

John Barry Calvert

Judgment Debtor

Procedural Posture

Enforcement of Judgment (charging Order and Sale of Land) / Application for Sale of Charged Land Under High Court Rules Following Charging Order

Legal Issues

  1. 1 Whether the Court may order sale of the whole property where a charging order only covers the liable party's legal interest
  2. 2 Whether the Court should exercise inherent jurisdiction or statutory power to alter title/remove registered proprietors
  3. 3 How proceeds of sale should be allocated and protected pending any claim by other registered proprietors

Ratio Decidendi

The Court granted an order for sale of the whole land notwithstanding the charging order strictly covered only the debtor's legal interest because exceptional circumstances (debtor overseas, land abandoned, rates unpaid, preservation of asset value and maximising sale price) justified directing sale of the entire property. The Court declined to alter title or vest ownership at this stage but protected potential interests of other registered proprietors by requiring the debtor's one-third legal interest be paid first and by holding remaining proceeds in Court for two months for any claimants before releasing remainder to satisfy the judgment debt; sale to be subject to purchaser granting...

Court Disposition

Sale order granted: Sheriff authorised to seize and sell the land and chattels of the judgment debtor; title not altered or vested at this stage; specified priorities and holding of proceeds with two month claim period for potential co-owners; sale subject to purchaser granting easement to Top Energy Ltd.