WANG V MELTZER HC AK CIV-2010-404-3177

WANG V MELTZER HC AK CIV-2010-404-3177

Costs were declined against the provisional trustee because he was compelled by statute to apply for approval, he did not act inconsistently with his responsibilities nor commit abuse of process, and imposing costs in these circumstances would unjustifiably deter professional trustees and undermine the statutory...

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Citation
openlaw-6db20fae_c29b_4f03_abb7_d10068a9601a.pdf
Parties
Insolvent: May Yan Wang; Applicant (provisional Trustee): Jeffrey Philip Meltzer
Court
High Court
Jurisdiction
New Zealand
Judgment Date
5 August 2011
Procedural Posture
Proposal Approval Under the Insolvency Act 2006 / Costs Application Following Dismissal of Proposal Approval (on Costs)
Outcome
Application for costs against provisional trustee declined
Legal Topics
S 333 Proposal Approval, Costs Against Provisional Trustees, Abuse of Process, Professional Trustee Responsibilities
Insolvency Law Civil Procedure Costs Law S 333 Proposal Approval Costs Against Provisional Trustees Abuse of Process Professional Trustee Responsibilities

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Parties

May Yan Wang

Insolvent

Jeffrey Philip Meltzer

Applicant (provisional Trustee)

Procedural Posture

Proposal Approval Under the Insolvency Act 2006 / Costs Application Following Dismissal of Proposal Approval (on Costs)

Legal Issues

  1. 1 Whether a provisional trustee who is required by statute to apply for court approval can be ordered to pay costs
  2. 2 Whether the trustee's conduct amounted to an abuse of process justifying indemnity costs
  3. 3 Whether imposing costs on professional trustees would undermine the statutory proposal regime

Ratio Decidendi

Costs were declined against the provisional trustee because he was compelled by statute to apply for approval, he did not act inconsistently with his responsibilities nor commit abuse of process, and imposing costs in these circumstances would unjustifiably deter professional trustees and undermine the statutory proposal regime.

Court Disposition

Application for costs against provisional trustee declined

Orders

  • Decline to make an order for costs against Mr Jeffrey Philip Meltzer