MORRISON KENT V THE COMMERCE COMMISSION AND ORS HC AK CIV-2009-404-001553

MORRISON KENT V THE COMMERCE COMMISSION AND ORS HC AK CIV-2009-404-001553

On the evidence — including sworn affidavit of Mr Ross, the consistent segregation of ticket receipts into a dedicated 01 account, and the intended purpose to preserve funds for refunds — the court was satisfied the three certainties were met and the funds in the 01 account were held on trust for ticket holders; consequently the funds are not part of the company's general assets and must be vested with the liquidators to determine valid refund claims.

Citation
openlaw-8a3077a9_d0e1_4e0b_9d6f_3278f6181395.pdf
Parties
Applicant: Morrison Kent; First Respondent: The Commerce Commission; Second Respondents (liquidators): Wayne John Deuchrass and Iain Andrew Nellies; Third Respondents: Epic Brewing Company Limited and Others
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 July 2009
Procedural Posture
Interpleader Application / Oral Judgment (high Court)
Outcome
Court declared the funds in the 01 account were held on trust for ticket holders and directed transfer to the liquidators to be held in a separate account pending determination of valid refund claims; costs directions made in favour of the stakeholder.
Legal Topics
Creation of Trust, Certainty of Intention, Certainty of Subject Matter, Certainty of Object, Interpleader, Distribution of Trust Funds, Costs and Administration
Trusts Insolvency Company Law Consumer Protection Civil Procedure Creation of Trust Certainty of Intention Certainty of Subject Matter +4 more

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Parties

Morrison Kent

Applicant

The Commerce Commission

First Respondent

Wayne John Deuchrass and Iain Andrew Nellies

Second Respondents (liquidators)

Epic Brewing Company Limited and Others

Third Respondents

Procedural Posture

Interpleader Application / Oral Judgment (high Court)

Legal Issues

  1. 1 Whether funds in the company's 01 account were held on trust for ticket holders or formed part of the company's assets available to creditors
  2. 2 If a trust existed, what were its terms and which ticket holders (if any) are entitled to refunds
  3. 3 Whether the stakeholder (Morrison Kent) may deduct its administration costs from the funds

Ratio Decidendi

On the evidence — including sworn affidavit of Mr Ross, the consistent segregation of ticket receipts into a dedicated 01 account, and the intended purpose to preserve funds for refunds — the court was satisfied the three certainties were met and the funds in the 01 account were held on trust for ticket holders; consequently the funds are not part of the company's general assets and must be vested with the liquidators to determine valid refund claims.

Court Disposition

Court declared the funds in the 01 account were held on trust for ticket holders and directed transfer to the liquidators to be held in a separate account pending determination of valid refund claims; costs directions made in favour of the stakeholder.

Orders

  • Morrison Kent to transfer the funds it holds to the liquidators
  • Liquidators to place the funds on deposit in a separate bank account pending further order