S BARRIE AND ORS V NATURE DISCOVERIES LIMITED AND ORS HC WN CIV-2008-485-2530

S BARRIE AND ORS V NATURE DISCOVERIES LIMITED AND ORS HC WN CIV-2008-485-2530

The Court held the defendants had not established that the entire statement of claim was hopeless and strike‑out should be sparingly used; plaintiffs were granted a final opportunity to replead with particulars. However, specific causes lacking any arguable basis against particular defendants were struck out: the second cause (interference with contractual relations) as against the sixth defendant, and the third cause (breach of fiduciary duty) as against the eighth defendant. The plaintiffs were found likely to be unable to pay costs if unsuccessful and ordered to provide security for costs of NZD 50,000, with the proceeding stayed until provided.

Citation
openlaw-2d782115_009d_4817_bc45_c79843708a26.pdf
Parties
First Plaintiff: Scott Barrie; Second Plaintiff: Anita Wood; Third Plaintiff: Nature Discoveries Queensgate Limited; Fourth Plaintiff: Nadis Porirua Limited; Fifth Plaintiff: Dakaris Limited; Sixth Plaintiff: Nadis Glenfield Limited; Seventh Plaintiff: Scott Barrie and Robin James Barrie; First Defendant: Nature Discoveries Limited; Second Defendant: Nature By Design Limited; Third Defendant: Nature Foundation Limited; Fourth Defendant: Douglas Pflaum; Fifth Defendant: Blaxall & Steven Distributors Limited; Sixth Defendant: John Garlick; Seventh Defendant: Mark Chan; Eighth Defendant: Daniel Garrett
Court
High Court
Jurisdiction
New Zealand
Judgment Date
27 May 2010
Procedural Posture
Civil / Interlocutory (strike‑out and Security for Costs Applications)
Outcome
Strike‑out applications dismissed except: second cause of action (interference with contractual relations) struck out as to sixth defendant; third cause of action (breach of fiduciary duty) struck out as to eighth defendant. Plaintiffs ordered to provide security for costs of NZD 50,000 and proceeding stayed until...
Legal Topics
Misrepresentation, Fair Trading Act S9 Liability, Interference With Contractual Relations, Personal Liability of Company Officers, Strike‑out of Pleadings, Security for Costs
Commercial Litigation Franchise Law Consumer Protection Company/director Liability Equity (fiduciary Duty) Misrepresentation Fair Trading Act S9 Liability Interference With Contractual Relations +3 more

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Parties

Scott Barrie

First Plaintiff

Anita Wood

Second Plaintiff

Nature Discoveries Queensgate Limited

Third Plaintiff

Nadis Porirua Limited

Fourth Plaintiff

Dakaris Limited

Fifth Plaintiff

Nadis Glenfield Limited

Sixth Plaintiff

Scott Barrie and Robin James Barrie

Seventh Plaintiff

Nature Discoveries Limited

First Defendant

Nature By Design Limited

Second Defendant

Nature Foundation Limited

Third Defendant

Douglas Pflaum

Fourth Defendant

Blaxall & Steven Distributors Limited

Fifth Defendant

John Garlick

Sixth Defendant

Mark Chan

Seventh Defendant

Daniel Garrett

Eighth Defendant

Procedural Posture

Civil / Interlocutory (strike‑out and Security for Costs Applications)

Legal Issues

  1. 1 Whether the plaintiffs' amended statement of claim disclosed reasonably arguable causes of action or should be struck out as prolix, unintelligible or an abuse of process
  2. 2 Whether individual defendants (directors/agents) could be personally liable under the Fair Trading Act, in tort or for breach of fiduciary duty on the pleaded facts
  3. 3 Whether security for costs should be ordered against the plaintiffs and in what quantum

Ratio Decidendi

The Court held the defendants had not established that the entire statement of claim was hopeless and strike‑out should be sparingly used; plaintiffs were granted a final opportunity to replead with particulars. However, specific causes lacking any arguable basis against particular defendants were struck out: the second cause (interference with contractual relations) as against the sixth defendant, and the third cause (breach of fiduciary duty) as against the eighth defendant. The plaintiffs were found likely to be unable to pay costs if unsuccessful and ordered to provide security for costs of NZD 50,000, with the proceeding stayed until provided.

Court Disposition

Strike‑out applications dismissed except: second cause of action (interference with contractual relations) struck out as to sixth defendant; third cause of action (breach of fiduciary duty) struck out as to eighth defendant. Plaintiffs ordered to provide security for costs of NZD 50,000 and proceeding stayed until...

Orders

  • Strike out second cause of action (interference with contractual relations) as against sixth defendant (John Garlick).
  • Strike out third cause of action (breach of fiduciary duty) as against eighth defendant (Daniel Garrett).