THE NEW ZEALAND GUARDIAN TRUST AND ST LAURENCE LENDING LIMITED AND ORS HC AK CIV 2009-404-000579

THE NEW ZEALAND GUARDIAN TRUST AND ST LAURENCE LENDING LIMITED AND ORS HC AK CIV 2009-404-000579

The court awarded costs to the provisional trustee but reduced the amount by 10% because the trustee and debtor failed to comply with the s330 statutory time limits for circulating proposal materials, which disadvantaged the opposing creditor; the reduction is made by analogy to r14.7 considerations. The trustee's claimed costs exceeded the $20,000 provision in the proposal and the court fixed costs at $4,716 plus Registrar‑fixed disbursements.

Citation
openlaw-4862e3ac_be78_4c7f_8921_517bbed026dc.pdf
Parties
Debtor/applicant: Gregory Martin Olliver; Trustee: Provisional Trustee; Creditor: The New Zealand Guardian Trust; Creditor: St Laurence Lending Limited; Creditor: Commonwealth Bank of Australia; Creditor: South Canterbury Finance; Creditor: Tickety Boo Investments Limited; Creditor: Secured Lending Limited; Creditor: Blackie Trust Limited; Creditor: Hadlow Trust; Creditor: Speke Design Limited; Creditor: TJ Finance Limited; Creditor: Henry Giles & Company Limited; Creditor: Strategic Finance Limited; Creditor: Westpac New Zealand Limited; Creditor: Auguste Holdings Limited; Creditor: NZ Finance Limited; Creditor: Wizard Limited; Creditor: Public Trust Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
18 December 2009
Procedural Posture
Insolvency Proposal Under Insolvency Act 2006 / Costs Application Following Reserved Judgment
Outcome
Costs awarded to the provisional trustee with a 10% reduction from the claimed amount
Legal Topics
Proposal Approval, Statutory Notice Requirements S330, Trustee Fees and Disbursements, High Court Rules Costs Assessment
Insolvency Law Civil Procedure Costs Law Proposal Approval Statutory Notice Requirements S330 Trustee Fees and Disbursements High Court Rules Costs Assessment

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Parties

Gregory Martin Olliver

Debtor/applicant

Provisional Trustee

Trustee

The New Zealand Guardian Trust

Creditor

St Laurence Lending Limited

Creditor

Commonwealth Bank of Australia

Creditor

South Canterbury Finance

Creditor

Tickety Boo Investments Limited

Creditor

Secured Lending Limited

Creditor

Blackie Trust Limited

Creditor

Hadlow Trust

Creditor

Speke Design Limited

Creditor

TJ Finance Limited

Creditor

Henry Giles & Company Limited

Creditor

Strategic Finance Limited

Creditor

Westpac New Zealand Limited

Creditor

Auguste Holdings Limited

Creditor

NZ Finance Limited

Creditor

Wizard Limited

Creditor

Public Trust Limited

Creditor

Procedural Posture

Insolvency Proposal Under Insolvency Act 2006 / Costs Application Following Reserved Judgment

Legal Issues

  1. 1 Whether costs should be awarded to the provisional trustee for the proposal approval proceedings
  2. 2 Whether non‑compliance with s330 Insolvency Act 2006 justifies reduction of costs
  3. 3 Whether the provision in the proposal for payment of trustee costs affects the court's costs order

Ratio Decidendi

The court awarded costs to the provisional trustee but reduced the amount by 10% because the trustee and debtor failed to comply with the s330 statutory time limits for circulating proposal materials, which disadvantaged the opposing creditor; the reduction is made by analogy to r14.7 considerations. The trustee's claimed costs exceeded the $20,000 provision in the proposal and the court fixed costs at $4,716 plus Registrar‑fixed disbursements.

Court Disposition

Costs awarded to the provisional trustee with a 10% reduction from the claimed amount

Orders

  • Opposing creditor to pay the trustee's costs and disbursements fixed at $4,716.00 after making a 10% deduction
  • Plus disbursements as fixed by the Registrar