SMITH v BALL [2020] NZHC 3485

SMITH v BALL [2020] NZHC 3485

Because CMDL failed to produce invoices, bank records and credible explanations for challenged expenses and withdrawals, the Court disallowed those deductions, adjusted FY2019 rent by averaging FY2017–18, calculated total net rental due to plaintiff as $73,312.82 for FY2010–FY2020 and awarded simple interest to judgment date at specified rates.

Citation
[2020] NZHC 3485
Parties
Plaintiff: Sahra Ling Smith; First Defendant: Roger Neville Ball; Second Defendant: Crystal Mint Developments Limited; Third Defendant: Crystal Mint Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 December 2020
Procedural Posture
Trust and Estate Dispute (proprietary Remedy) / Final Judgment Determining Rental Income Inquiry on the Papers
Outcome
Partial judgment for plaintiff: CMDL liable to account and pay unpaid net rental for FY2010–FY2020
Legal Topics
Constructive Trust, Accounting for Profits, Rental Income Inquiry, Security for Costs, Interest on Judgment
Trusts Property Equity Estate Administration Civil Procedure Constructive Trust Accounting for Profits Rental Income Inquiry +2 more

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Parties

Sahra Ling Smith

Plaintiff

Roger Neville Ball

First Defendant

Crystal Mint Developments Limited

Second Defendant

Crystal Mint Limited

Third Defendant

Procedural Posture

Trust and Estate Dispute (proprietary Remedy) / Final Judgment Determining Rental Income Inquiry on the Papers

Legal Issues

  1. 1 Whether rates of $14,000 in FY2016 were deductible rental expenses
  2. 2 Whether legal expenses $2,628 (FY2017) were deductible rental expenses
  3. 3 Whether legal expenses $32,940 (FY2018) were deductible rental expenses

Ratio Decidendi

Because CMDL failed to produce invoices, bank records and credible explanations for challenged expenses and withdrawals, the Court disallowed those deductions, adjusted FY2019 rent by averaging FY2017–18, calculated total net rental due to plaintiff as $73,312.82 for FY2010–FY2020 and awarded simple interest to judgment date at specified rates.

Court Disposition

Partial judgment for plaintiff: CMDL liable to account and pay unpaid net rental for FY2010–FY2020

Orders

  • CMDL pay Ms Sahra Ling Smith the sum of 73,312.82 NZD for unpaid net rental generated by the properties between FY2010 and FY2020
  • CMDL pay simple interest on the amounts due from the last day of each financial year to the date of judgment at the following rates: to 31 March 2016 at 3.5% p.a.; from 1 April 2016 to 31 March 2020 at 2.5% p.a.; from 1 April 2020 to date of judgment at 1.5% p.a.