SANSON AND ANOR v EBERT CONSTRUCTION LIMITED [2015] NZHC 3046

SANSON AND ANOR v EBERT CONSTRUCTION LIMITED [2015] NZHC 3046

The Court exercised its discretion under s 87 Judicature Act 1908 to award interest on sums ordered recovered and held that interest should run from the date of liquidation because the respondent had, through its CEO, sufficient knowledge of the risk and benefited from use of the funds; respondent's delay and...

Source-derived case information.

Citation
[2015] NZHC 3046
Parties
Applicant: Craig Alexander Sanson; Applicant: David John Bridgman; Respondent: Ebert Construction Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
17 December 2015
Procedural Posture
Application Under S 294(5) Companies Act 1993 / Post Judgment Interest Determination
Outcome
Interest awarded under s 87 Judicature Act 1908 from date of liquidation; sum owing calculated as $693,922.17; costs and disbursements of $29,172.16 awarded to applicants.
Legal Topics
Preferential Payment, Insolvent Transaction, Interest on Judgment, Change of Position Defence, Delay and Mitigation, Section 87 Judicature Act 1908, Section 294(5) Companies Act 1993
Company Law Insolvency (liquidation) Civil Procedure Restitution/equitable Remedies Preferential Payment Insolvent Transaction Interest on Judgment Change of Position Defence +3 more

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Parties

Craig Alexander Sanson

Applicant

David John Bridgman

Applicant

Ebert Construction Limited

Respondent

Procedural Posture

Application Under S 294(5) Companies Act 1993 / Post Judgment Interest Determination

Legal Issues

  1. 1 Whether interest should be awarded on sums ordered recovered from the respondent
  2. 2 Proper commencement date for interest (date of liquidation v date of notice of claim)
  3. 3 Appropriate exercise of the Court's discretion under s 87 Judicature Act 1908

Ratio Decidendi

The Court exercised its discretion under s 87 Judicature Act 1908 to award interest on sums ordered recovered and held that interest should run from the date of liquidation because the respondent had, through its CEO, sufficient knowledge of the risk and benefited from use of the funds; respondent's delay and asserted prejudice did not justify denying interest.

Court Disposition

Interest awarded under s 87 Judicature Act 1908 from date of liquidation; sum owing calculated as $693,922.17; costs and disbursements of $29,172.16 awarded to applicants.

Orders

  • Respondent Ebert Construction Limited to pay interest calculated under s 87 from the date of liquidation, amounting to $693,922.17.
  • By consent respondent to pay costs and disbursements to applicants of $29,172.16.