ROY WILLIAM BASSETT-BURR v QUENTIN STOBART HAINES [2023] NZCA 380

ROY WILLIAM BASSETT-BURR v QUENTIN STOBART HAINES [2023] NZCA 380

The Court held the statutory demands were not an abuse of process in light of subsequent findings that the debt was properly assigned and that the appellant did not commit relevant impropriety nor act solely in his own interests; therefore there was no sufficient basis to impose non-party costs or an uplift on the...

Source-derived case information.

Citation
[2023] NZCA 380
Parties
Appellant: Roy William Bassett-Burr; First Respondent: Quentin Stobart Haines; Second Respondent: BPE Trustees (No 1) Limited; Third Respondent: Quentin Haines Properties Limited
Court
Court of Appeal
Jurisdiction
New Zealand
Judgment Date
21 August 2023
Procedural Posture
Civil Appeal (companies/costs) / Decision of the Court of Appeal
Outcome
Appeal allowed in part; order that appellant pay non-party costs set aside; High Court directed to revisit costs; Court of Appeal awarded costs to appellant for this appeal
Legal Topics
Statutory Demand (s289 Companies Act 1993), Setting Aside Statutory Demand (s290), Non Party Costs, Costs Uplift for Abuse/misuse of Process, Director/trustee Duties, Limited Liability and Piercing Corporate Veil
Companies Law Civil Procedure Costs Law Trusts and Fiduciary Duties Insolvency Statutory Demand (s289 Companies Act 1993) Setting Aside Statutory Demand (s290) Non Party Costs +3 more

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Parties

Roy William Bassett-Burr

Appellant

Quentin Stobart Haines

First Respondent

BPE Trustees (No 1) Limited

Second Respondent

Quentin Haines Properties Limited

Third Respondent

Procedural Posture

Civil Appeal (companies/costs) / Decision of the Court of Appeal

  1. 1 Whether non-party costs could properly be imposed on a director/trustee who signed statutory demands
  2. 2 Whether the statutory demands amounted to an abuse of process warranting uplifted non-party costs
  3. 3 Whether there was sufficient causal nexus and impropriety to treat the director as the real party in interest

Ratio Decidendi

The Court held the statutory demands were not an abuse of process in light of subsequent findings that the debt was properly assigned and that the appellant did not commit relevant impropriety nor act solely in his own interests; therefore there was no sufficient basis to impose non-party costs or an uplift on the appellant, and the High Court order requiring him to pay those costs was set aside with directions that the High Court revisit costs in light of this judgment; the Court ordered the respondents to pay the appellant costs of this appeal on a standard band A basis.

Court Disposition

Appeal allowed in part; order that appellant pay non-party costs set aside; High Court directed to revisit costs; Court of Appeal awarded costs to appellant for this appeal

Orders

  • The appeal is allowed and the order for costs made in [2022] NZHC 2966 is set aside.
  • The High Court must revisit, in light of this judgment, the costs award made in [2022] NZHC 3402.