Application by Stables Family for Vesting Order [2016] NZHC 2519

Application by Stables Family for Vesting Order [2016] NZHC 2519

The court applied s119(1) and granted the vesting order because the applicants demonstrated they had suffered loss as a result of the Official Assignee's disclaimer, the affected parties consented or did not oppose, and it was appropriate in the interests of justice to dispense with service; accordingly the...

Source-derived case information.

Citation
[2016] NZHC 2519
Parties
Applicant (trustee): Stables Family Trust (trustees: Jonathan Henry Stables; Nicola Stables; Joanne Rachel McLean); Applicant: Owen Joseph Stables; Applicant: Leone Henrietta Stables; Bankrupt / Respondent: Erin Owen Stables; Bankrupt / Respondent: Victoria Jillian Lambert; Interested Party / Crown Representative: Official Assignee; Interested Party (bona Vacantia Recipient): The Treasury; Mortgagee / Interested Party: Bank of New Zealand
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 October 2016
Procedural Posture
Application for Vesting Order Under the Insolvency Act 2006 / Judgment on Without‑notice Application (on the Papers)
Outcome
Application allowed: vesting order granted under s119(1) of the Insolvency Act 2006; permission to commence by originating application granted; service dispensed; no order as to costs.
Legal Topics
Vesting Order, Disclaimer of Property, Bona Vacantia, Service Dispensed, Equitable Distribution
Insolvency Property Trusts Vesting Order Disclaimer of Property Bona Vacantia Service Dispensed Equitable Distribution

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Parties

Stables Family Trust (trustees: Jonathan Henry Stables; Nicola Stables; Joanne Rachel McLean)

Applicant (trustee)

Owen Joseph Stables

Applicant

Leone Henrietta Stables

Applicant

Erin Owen Stables

Bankrupt / Respondent

Victoria Jillian Lambert

Bankrupt / Respondent

Official Assignee

Interested Party / Crown Representative

The Treasury

Interested Party (bona Vacantia Recipient)

Bank of New Zealand

Mortgagee / Interested Party

Procedural Posture

Application for Vesting Order Under the Insolvency Act 2006 / Judgment on Without‑notice Application (on the Papers)

Legal Issues

  1. 1 Whether s119(1) of the Insolvency Act 2006 authorises vesting of a disclaimed interest in co‑owners who have suffered loss
  2. 2 Whether the court may dispense with service where affected parties consent or do not oppose
  3. 3 Whether the applicants have suffered loss or damage within s119(1)

Ratio Decidendi

The court applied s119(1) and granted the vesting order because the applicants demonstrated they had suffered loss as a result of the Official Assignee's disclaimer, the affected parties consented or did not oppose, and it was appropriate in the interests of justice to dispense with service; accordingly the disclaimed one‑third share was vested equally in the two remaining owner groups, resulting in each holding a one‑half share.

Court Disposition

Application allowed: vesting order granted under s119(1) of the Insolvency Act 2006; permission to commence by originating application granted; service dispensed; no order as to costs.

Orders

  • Permission granted for the applicants to commence proceedings by originating application.
  • Service dispensed with on the Official Assignee, the Treasury, Bank of New Zealand, Erin Owen Stables and Victoria Jillian Lambert.