RD1 LIMITED v A P FLEMING AND C E FLEMING AS TRUSTEES OF THE COUNTRY SPIRIT TRUST [2016] NZHC 1395

RD1 LIMITED v A P FLEMING AND C E FLEMING AS TRUSTEES OF THE COUNTRY SPIRIT TRUST [2016] NZHC 1395

The Court found on objective evidence that RD1's invoice terms were incorporated by a long uneventful course of dealing and the defendants' conduct (including acknowledgment via a Farm Source card) demonstrated responsibility for payment; absent any agreement limiting personal liability the trustees are personally liable for the Trust's debts; the Bank's separate dealings do not create a triable issue for this claim and do not require joinder; accordingly summary judgment was appropriate for the principal debt, with contractual interest issues partly reserved and statutory interest applied as ordered.

Citation
[2016] NZHC 1395
Parties
Plaintiff: RD1 Limited; Defendant (trustee): Anthony Paul Fleming; Defendant (trustee): Carla Elizabeth Fleming
Court
High Court
Jurisdiction
New Zealand
Judgment Date
24 June 2016
Procedural Posture
Debt Claim (supply of Goods) Summary Judgment / Summary Judgment Application and Hearing
Outcome
Judgment for Plaintiff against the Defendants jointly and severally
Legal Topics
Summary Judgment, Trustee Liability, Incorporation of Terms by Course of Dealing, Invoice Terms, Interest, Costs
Commercial Law Contract Law Trusts Civil Procedure Debt Recovery Summary Judgment Trustee Liability Incorporation of Terms by Course of Dealing +3 more

Case Brief

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Parties

RD1 Limited

Plaintiff

Anthony Paul Fleming

Defendant (trustee)

Carla Elizabeth Fleming

Defendant (trustee)

Procedural Posture

Debt Claim (supply of Goods) Summary Judgment / Summary Judgment Application and Hearing

Legal Issues

  1. 1 Whether defendants as trustees are personally liable for the Trust's unpaid invoices
  2. 2 Whether RD1's terms of trade were incorporated and known to the defendants
  3. 3 Whether the Bank's conduct creates a triable issue or requires joinder

Ratio Decidendi

The Court found on objective evidence that RD1's invoice terms were incorporated by a long uneventful course of dealing and the defendants' conduct (including acknowledgment via a Farm Source card) demonstrated responsibility for payment; absent any agreement limiting personal liability the trustees are personally liable for the Trust's debts; the Bank's separate dealings do not create a triable issue for this claim and do not require joinder; accordingly summary judgment was appropriate for the principal debt, with contractual interest issues partly reserved and statutory interest applied as ordered.

Court Disposition

Judgment for Plaintiff against the Defendants jointly and severally

Orders

  • Judgment awarded against the defendants jointly and severally in the sum of $316,730.11
  • Interest of $5,304.85 to be paid on the judgment sum to 30 June 2015