GRANT AND KHOV v MCCULLAGH [2013] NZHC 2210

GRANT AND KHOV v MCCULLAGH [2013] NZHC 2210

The liquidators were the successful party because the receivers provided the material sought and the withdrawal followed that provision; respondents (former receivers) ordered to pay applicants' costs on a scale 2B basis as an interlocutory application; uplift and indemnity costs refused and recovery for in-house counsel allowed on the basis of equivalent external cost replacement.

Citation
[2013] NZHC 2210
Parties
Applicant/liquidator of Ellis Construction Ltd (in Liquidation): Damien Grant; Applicant/liquidator of Ellis Construction Ltd (in Liquidation): Steven Khov; Respondent/former Receiver: Anthony John McCullagh; Respondent/former Receiver: Stephen Mark Lawrence
Court
High Court
Jurisdiction
New Zealand
Judgment Date
28 August 2013
Procedural Posture
Application for Production of Documents and Costs / Costs Determination Following Withdrawal of Application
Outcome
Respondent receivers ordered to pay applicant liquidators' costs on a scale 2B basis (interlocutory application)
Legal Topics
Production of Documents, Receivership, Liquidation, Companies Act S261, Withdrawal/discontinuance, Costs Assessment (scale 2 B)
Companies Law Insolvency Civil Procedure Costs Law Production of Documents Receivership Liquidation Companies Act S261 +2 more

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Parties

Damien Grant

Applicant/liquidator of Ellis Construction Ltd (in Liquidation)

Steven Khov

Applicant/liquidator of Ellis Construction Ltd (in Liquidation)

Anthony John McCullagh

Respondent/former Receiver

Stephen Mark Lawrence

Respondent/former Receiver

Procedural Posture

Application for Production of Documents and Costs / Costs Determination Following Withdrawal of Application

Legal Issues

  1. 1 Whether the liquidators were the successful party for costs following withdrawal of their application for production of documents
  2. 2 Whether the receivers were obliged to produce the requested documents (trust account statements and supporting papers)
  3. 3 Whether increased or indemnity costs were justified

Ratio Decidendi

The liquidators were the successful party because the receivers provided the material sought and the withdrawal followed that provision; respondents (former receivers) ordered to pay applicants' costs on a scale 2B basis as an interlocutory application; uplift and indemnity costs refused and recovery for in-house counsel allowed on the basis of equivalent external cost replacement.

Court Disposition

Respondent receivers ordered to pay applicant liquidators' costs on a scale 2B basis (interlocutory application)

Orders

  • Respondents Anthony John McCullagh and Stephen Mark Lawrence to pay the applicants' costs calculated on a scale 2B basis in respect of the interlocutory application, in accordance with the relevant items of cost in Schedule 3 to the High Court Rules.