M J WATTS v D LEARY AND RICE CRAIG [2014] NZHC 3253

M J WATTS v D LEARY AND RICE CRAIG [2014] NZHC 3253

Security for costs in the sum of $17,500 was ordered because the plaintiff is a non-resident with modest resources, the claim against the third defendant has balanced but unproven merits requiring further evidence and the court concluded an intermediate security amount was appropriate to protect the defendant; the...

Source-derived case information.

Citation
[2014] NZHC 3253
Parties
Plaintiff: Michael John Watts; First Defendant: David Vivian Leary; Second Defendant: Shirley Jean Leary; Third Defendant: Rice Craig
Court
High Court
Jurisdiction
New Zealand
Judgment Date
16 December 2014
Procedural Posture
Civil Proceeding Trust Claim / Interlocutory Security for Costs Application
Outcome
Order for security for costs granted; proceeding stayed until security provided; costs reserved
Legal Topics
Security for Costs, Trust Account Regulations, Breach of Trust, Receipt and Application of Client Funds, Jurisdictional Transfer From District Court to High Court
Trust Law Regulation of Lawyers Professional Negligence Civil Procedure Contract Security for Costs Trust Account Regulations Breach of Trust +2 more

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Parties

Michael John Watts

Plaintiff

David Vivian Leary

First Defendant

Shirley Jean Leary

Second Defendant

Rice Craig

Third Defendant

Procedural Posture

Civil Proceeding Trust Claim / Interlocutory Security for Costs Application

Legal Issues

  1. 1 Whether the funds transferred were a loan or a gift
  2. 2 Whether the third defendant held the funds on trust and breached the Lawyers & Conveyancers Act (Trust Account) Regulations 2008
  3. 3 Whether the third defendant caused or contributed to the plaintiff's loss

Ratio Decidendi

Security for costs in the sum of $17,500 was ordered because the plaintiff is a non-resident with modest resources, the claim against the third defendant has balanced but unproven merits requiring further evidence and the court concluded an intermediate security amount was appropriate to protect the defendant; the proceeding was stayed until security was provided.

Court Disposition

Order for security for costs granted; proceeding stayed until security provided; costs reserved

Orders

  • Plaintiff to pay security for costs of $17,500
  • Security to be provided in cash or on such security as the Registrar of the High Court decides