GILBERT, LIQUIDATOR OF CRYSTAL WATERS MANAGEMENT LTD (IN LIQUIDATION) AND ANOR V ABOUT BODY CORPORATES LTD AND ANOR HC AK CIV 2009-404-2048

GILBERT, LIQUIDATOR OF CRYSTAL WATERS MANAGEMENT LTD (IN LIQUIDATION) AND ANOR V ABOUT BODY CORPORATES LTD AND ANOR HC AK CIV 2009-404-2048

The liquidator lacked standing to seek injunctive relief in his personal name because he acts as agent of the company and the rights under the management agreement belong to the company; furthermore there was no seriously arguable right for trial because the Body Corporate had a contractual right to terminate on liquidation and the applicant failed to show valid grounds (notice irregularity, affirmation or estoppel) or that termination would cause irreparable harm; the balance of convenience favored the Body Corporate; consequentially the interim injunction was dismissed and costs awarded to the Body Corporate.

Citation
openlaw-130c1956_70c2_46c0_aa5e_7beec40d44e3.pdf
Parties
First Plaintiff (liquidator of Crystal Waters Management Ltd (in Liquidation)): John Michael Gilbert; Second Plaintiff: Crystal Waters Management Ltd (in liquidation); First Defendant: About Body Corporates Ltd; Second Defendant: Body Corporate No 382272
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 June 2009
Procedural Posture
Companies Act Interim Injunction Application / Interlocutory (application for Interim Injunction)
Outcome
Application for interim injunction dismissed; applicant ordered to pay respondent's costs and disbursements; certification for two counsel
Legal Topics
Liquidator Powers and Standing, Ultra Vires and Severability, Termination of Contract, Balance of Convenience, Adequacy of Damages, Body Corporate Powers
Company Law Equity Contract Law Property/unit Titles Law Civil Procedure (injunctions) Liquidator Powers and Standing Ultra Vires and Severability Termination of Contract +3 more

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Parties

John Michael Gilbert

First Plaintiff (liquidator of Crystal Waters Management Ltd (in Liquidation))

Crystal Waters Management Ltd (in liquidation)

Second Plaintiff

About Body Corporates Ltd

First Defendant

Body Corporate No 382272

Second Defendant

Procedural Posture

Companies Act Interim Injunction Application / Interlocutory (application for Interim Injunction)

Legal Issues

  1. 1 Whether the liquidator has standing in his personal name to seek an injunction against the Body Corporate
  2. 2 Whether the Body Corporate's termination of the management contract was valid
  3. 3 Whether exclusive letting provisions of the management contract were ultra vires the Body Corporate and if severable

Ratio Decidendi

The liquidator lacked standing to seek injunctive relief in his personal name because he acts as agent of the company and the rights under the management agreement belong to the company; furthermore there was no seriously arguable right for trial because the Body Corporate had a contractual right to terminate on liquidation and the applicant failed to show valid grounds (notice irregularity, affirmation or estoppel) or that termination would cause irreparable harm; the balance of convenience favored the Body Corporate; consequentially the interim injunction was dismissed and costs awarded to the Body Corporate.

Court Disposition

Application for interim injunction dismissed; applicant ordered to pay respondent's costs and disbursements; certification for two counsel

Orders

  • Interim injunction dismissed
  • Applicant (Mr Gilbert) to pay Body Corporate costs according to category 2B and disbursements