NELSON CITY COUNCIL v THE YACHT POUNAMU [2015] NZHC 1664
Because the tender fee ($3,000) would materially reduce the net return on a vessel valued at $12,000–$15,000 and a private purchaser was available, the Court exercised its discretion to amend the prior order to permit sale either by private treaty or public tender to achieve a proportionate and efficient sale.
Source-derived case information.
- Citation
- [2015] NZHC 1664
- Parties
- Plaintiff: Nelson City Council; Defendant: The Yacht Pounamu
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 16 July 2015
- Procedural Posture
- Civil Judicial Sale of Vessel / Post Judgment Directions Application
- Outcome
- Order amended to permit the vessel to be appraised and sold either by private treaty or public tender; leave to apply for further directions reserved.
- Legal Topics
- Court Ordered Sale, Public Tender Vs Private Treaty, Costs Proportionality, Judicial Case Management
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Nelson City Council
Plaintiff
The Yacht Pounamu
Defendant
Procedural Posture
Civil Judicial Sale of Vessel / Post Judgment Directions Application
Legal Issues
- 1 Whether the court should permit sale by private treaty as an alternative to public tender
- 2 Whether the cost of conducting a tender is proportionate to the vessel's market value
- 3 Whether the earlier order should be amended to provide flexibility for sale methods
Ratio Decidendi
Because the tender fee ($3,000) would materially reduce the net return on a vessel valued at $12,000–$15,000 and a private purchaser was available, the Court exercised its discretion to amend the prior order to permit sale either by private treaty or public tender to achieve a proportionate and efficient sale.
Court Disposition
Order amended to permit the vessel to be appraised and sold either by private treaty or public tender; leave to apply for further directions reserved.
Orders
- The Court makes an order that the defendant vessel, Pounamu, be appraised and sold either by way of private treaty or public tender.
- Leave is reserved to the Council to apply for further directions should that be required.
Full Case Text
Judgment text and source record
1 paragraphs
NELSON CITY COUNCIL v THE YACHT POUNAMU [2015] NZHC 1664 [16 July 2015]IN THE HIGH COURT OF NEW ZEALANDWELLINGTON REGISTRYCIV 2014-442-24[2015] NZHC 1664BETWEEN NELSON CITY COUNCILPlaintiffAND THE YACHT POUNAMUDefendantHearing: On PapersCounsel: M J Logan for PlaintiffJudgment: 16 July 2015JUDGMENT (NO 2) OF BROWN J[1] In my Judgment of 17 April 20151 I made an order in the terms sought that the yacht Pounamu be appraised and sold by way of public tender or, if no satisfactory bids were received by way of tender, by private treaty. I reserved leave to the plaintiff to apply for further directions should that be required.[2] In a memorandum dated 16 July 2015 counsel for the plaintiff advises that the Registrar has obtained quotations from two vessel brokers in Nelson, both of whom will charge $3,000 to conduct the tender process. Because the vessel has now been valued as having a market value between $12,000 and $15,000, the tender cost would be a substantial portion of the potential sale value.[3] However one of the brokers has indicated that he has a private client who may be interested in purchasing the vessel. A private treaty sale would have the advantage of avoiding the cost and delay associated with the tender process. Accordingly the plaintiff seeks a further direction to permit the Pounamu to be sold either by way of private treaty or public tender.1 Nelson City Council v The Yacht Pounamu [2015] NZHC 752.[4] I agree that the circumstances are such that a more flexible order is appropriate allowing for sale by private treaty or public tender in the alternative. Consequently the order at [19] of my earlier Judgment is amended to read as follows:[19] The Court makes an order that the defendant vessel, Pounamu, be appraised and sold either by way of private treaty or public tender.[5] Leave is reserved to the Council to apply for further directions should that be required.________________________Brown JSolicitors:Pitt & Moore, Solicitors, Nelson