HUNG & ANOR V PARTS IMPORT LTD HC AK CIV 2007-404-003902

HUNG & ANOR V PARTS IMPORT LTD HC AK CIV 2007-404-003902

The Court held that a non-party intervenor who legitimately appears under s241 may be awarded costs by analogy to the High Court Rules; the application for indemnity costs was declined because the plaintiffs' conduct did not meet the exceptional threshold; the Court awarded party-and-party costs to Mr Tse of $8,960 plus disbursements, extended time for late filing, and confirmed plaintiffs are entitled to Category 2 Band B costs against the defendant covering the ex parte application.

Citation
openlaw-58505eda_e42d_4301_9e54_5f7129d7cd96.pdf
Parties
First Plaintiff: Norman Hung; Second Plaintiff: Andrew Yong; Defendant Company: Parts Import Limited; Intervenor (director, Shareholder and Creditor): K D Tse
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 November 2008
Procedural Posture
Companies Act 1993 S241 Liquidation Application / Costs Application (post Judgment)
Outcome
Application for indemnity costs declined; party-and-party costs awarded to intervenor Mr Tse; plaintiffs to bear those costs; plaintiffs entitled to costs against defendant on Category 2 Band B including ex parte application.
Legal Topics
Liquidation, Appointment of Liquidator, Indemnity Costs, High Court Rules, Intervention by Non Party
Company Law Insolvency Civil Procedure Costs Law Liquidation Appointment of Liquidator Indemnity Costs High Court Rules +1 more

Case Brief

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Parties

Norman Hung

First Plaintiff

Andrew Yong

Second Plaintiff

Parts Import Limited

Defendant Company

K D Tse

Intervenor (director, Shareholder and Creditor)

Procedural Posture

Companies Act 1993 S241 Liquidation Application / Costs Application (post Judgment)

Legal Issues

  1. 1 Whether Mr Tse's costs application was time-barred
  2. 2 Whether a non-party/intervenor may be awarded costs
  3. 3 Whether plaintiffs should bear costs despite success on primary relief

Ratio Decidendi

The Court held that a non-party intervenor who legitimately appears under s241 may be awarded costs by analogy to the High Court Rules; the application for indemnity costs was declined because the plaintiffs' conduct did not meet the exceptional threshold; the Court awarded party-and-party costs to Mr Tse of $8,960 plus disbursements, extended time for late filing, and confirmed plaintiffs are entitled to Category 2 Band B costs against the defendant covering the ex parte application.

Court Disposition

Application for indemnity costs declined; party-and-party costs awarded to intervenor Mr Tse; plaintiffs to bear those costs; plaintiffs entitled to costs against defendant on Category 2 Band B including ex parte application.

Orders

  • Plaintiffs shall pay costs of $8,960.00 plus disbursements as fixed by the Registrar to Mr K D Tse.
  • Plaintiffs are entitled to costs against the defendant based on Category 2 Band B, which includes costs relating to the ex parte application together with disbursements as fixed by the Registrar.