BALLANTYNE TRUSTEES LTD, A N HEAD, CALMWATER ENTERPRISES PTY LTD as Trustees of the GBR TRUST and KEUNG v GBR INVESTMENT LTD and ORS [2017] NZHC 908

BALLANTYNE TRUSTEES LTD, A N HEAD, CALMWATER ENTERPRISES PTY LTD as Trustees of the GBR TRUST and KEUNG v GBR INVESTMENT LTD and ORS [2017] NZHC 908

The Court awarded costs to the defendants on an indemnity basis because the plaintiffs commenced and continued the proceeding and defended the strike-out application in a manner the Court found vexatious and frivolous, including pleading causes vested in the Official Assignee and time-barred or inadequately pleaded...

Source-derived case information.

Citation
[2017] NZHC 908
Parties
First Plaintiffs: BALLANTYNE TRUSTEES LIMITED; AVERILL NOELINE HEAD; CALMWATER ENTERPRISES PTY LIMITED as Trustees of the GBR TRUST; Second Plaintiff: SENG BOU KEUNG; First Defendant: GBR INVESTMENT LIMITED; Second Defendant: GRIGORI NIKOLAYEVICH KOULANOV; Third Defendants: NIKOLAI KOULANOV and NATALIA KOULANOV; Fourth Defendant: THEODOROS INVESTMENTS LIMITED
Court
High Court
Jurisdiction
New Zealand
Judgment Date
8 May 2017
Procedural Posture
Civil Litigation (strike Out Application Under Contractual Remedies Act 1979) / Interim Costs Judgment Following Strike Out; Appeal Pending
Outcome
Plaintiffs ordered to pay defendants' costs on an indemnity basis plus disbursements; stay of enforcement refused; quantum to be fixed once sufficient unredacted material filed
Legal Topics
Indemnity Costs, Strike Out, Stay of Enforcement, Second Counsel Certification, Pleading Sufficiency, Limitation Periods, Vexatious and Frivolous Litigation
Civil Procedure Costs Contract Law Insolvency Law Defamation Law Limitation Law Indemnity Costs Strike Out +5 more

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Parties

BALLANTYNE TRUSTEES LIMITED; AVERILL NOELINE HEAD; CALMWATER ENTERPRISES PTY LIMITED as Trustees of the GBR TRUST

First Plaintiffs

SENG BOU KEUNG

Second Plaintiff

GBR INVESTMENT LIMITED

First Defendant

GRIGORI NIKOLAYEVICH KOULANOV

Second Defendant

NIKOLAI KOULANOV and NATALIA KOULANOV

Third Defendants

THEODOROS INVESTMENTS LIMITED

Fourth Defendant

Procedural Posture

Civil Litigation (strike Out Application Under Contractual Remedies Act 1979) / Interim Costs Judgment Following Strike Out; Appeal Pending

Legal Issues

  1. 1 Whether indemnity costs should be awarded under r 14.6
  2. 2 Whether costs for second counsel should be awarded
  3. 3 What quantum of indemnity costs is reasonable

Ratio Decidendi

The Court awarded costs to the defendants on an indemnity basis because the plaintiffs commenced and continued the proceeding and defended the strike-out application in a manner the Court found vexatious and frivolous, including pleading causes vested in the Official Assignee and time-barred or inadequately pleaded claims; second counsel costs were justified by complexity and potential quantum; quantum of indemnity costs to be fixed after production of unredacted invoices and supporting affidavits; application for stay refused.

Court Disposition

Plaintiffs ordered to pay defendants' costs on an indemnity basis plus disbursements; stay of enforcement refused; quantum to be fixed once sufficient unredacted material filed

Orders

  • Plaintiffs to pay defendants costs on an indemnity basis plus disbursements
  • Plaintiffs to file and serve an affidavit containing unredacted invoices and supporting material within seven working days