GRANT & KHOV AS LIQUIDATORS OF NZ PROPERTIES HOLDING LIMITED (IN LIQ) V CP ASSET MANAGEMENT LTD HC AK CIV-2012-404-005014

GRANT & KHOV AS LIQUIDATORS OF NZ PROPERTIES HOLDING LIMITED (IN LIQ) V CP ASSET MANAGEMENT LTD HC AK CIV-2012-404-005014

Because the liquidators went beyond a neutral statutory role and actively sought to set aside the creditors' resolution and opposed appointment of alternative liquidators, they assumed an adversarial role and were personally liable for the opponents' costs; the court awarded the first to sixth respondents NZD...

Source-derived case information.

Citation
openlaw-6a34aa49_25af_4492_8f7e_3d057119b965.pdf
Parties
Applicants: Damien Grant and Steven Khov as Liquidators of NZ Properties Holding Limited (in Liquidation); First Respondent: CP Asset Management Limited; Second Respondent: Asia Pacific Hotel Investments Limited; Third Respondent: C P Retail Holdings Limited; Fourth Respondent: Raisons Pacific Investments Limited; Fifth Respondent: South Island Hotel Investments Limited; Sixth Respondent: Yeil C & M Limited; Seventh Respondents: Brian and Bridgit Lawrence
Court
High Court
Jurisdiction
New Zealand
Judgment Date
5 March 2013
Procedural Posture
Companies Act S243(7) and S245 a Application to Set Aside Creditors' Resolution and Appointment of Alternative Liquidators / Costs Determination Following Dismissal of Application; Costs Reserved and Now Decided
Outcome
Applicants ordered personally to pay costs to first to sixth respondents; no uplift ordered; no s45(5) order made in relation to seventh respondents.
Legal Topics
Liquidator Liability for Costs, Creditors' Resolutions, Application Under S245 a, Costs Banding and Uplift, Legal Services Act S45(5) Orders
Company Law Insolvency Civil Procedure Costs Law Liquidator Liability for Costs Creditors' Resolutions Application Under S245 a Costs Banding and Uplift +1 more

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Parties

Damien Grant and Steven Khov as Liquidators of NZ Properties Holding Limited (in Liquidation)

Applicants

CP Asset Management Limited

First Respondent

Asia Pacific Hotel Investments Limited

Second Respondent

C P Retail Holdings Limited

Third Respondent

Raisons Pacific Investments Limited

Fourth Respondent

South Island Hotel Investments Limited

Fifth Respondent

Yeil C & M Limited

Sixth Respondent

Brian and Bridgit Lawrence

Seventh Respondents

Procedural Posture

Companies Act S243(7) and S245 a Application to Set Aside Creditors' Resolution and Appointment of Alternative Liquidators / Costs Determination Following Dismissal of Application; Costs Reserved and Now Decided

Legal Issues

  1. 1 Whether liquidators are personally liable for costs when they take an active adversarial role
  2. 2 Whether the unsuccessful applicants should pay costs on 2B band with band C for initial opposition affidavits
  3. 3 Whether an uplift of costs is warranted

Ratio Decidendi

Because the liquidators went beyond a neutral statutory role and actively sought to set aside the creditors' resolution and opposed appointment of alternative liquidators, they assumed an adversarial role and were personally liable for the opponents' costs; the court awarded the first to sixth respondents NZD 8,955.00, refused any uplift, and declined to make an order under s45(5) in relation to the seventh respondents.

Court Disposition

Applicants ordered personally to pay costs to first to sixth respondents; no uplift ordered; no s45(5) order made in relation to seventh respondents.

Orders

  • Applicants to pay the first to sixth respondents costs in the sum of $8,955.00.