WISELINE CORPORATION LTD AND ANOR V R HOCKEY IN HER CAPACITY AS EXECUTRIX OF THE ESTATE OF THE LATE RUSSELL GARLAND HOCKEY AND ANOR HC AK CIV 1999-404-000936

WISELINE CORPORATION LTD AND ANOR V R HOCKEY IN HER CAPACITY AS EXECUTRIX OF THE ESTATE OF THE LATE RUSSELL GARLAND HOCKEY AND ANOR HC AK CIV 1999-404-000936

The judge found on the balance of probabilities that Patrick Antony Darby controlled and effectively funded the insolvent plaintiff companies, that security for costs had expired leaving no practical recovery against the companies, that causation linked Darby's conduct to the costs incurred, that the Court had jurisdiction to order costs against a non-party in these circumstances, and that in the exercise of judicial discretion it was just to order Darby personally to pay the costs awarded against Wiseline and Spaceways.

Citation
openlaw-826b59ed_8f75_4fcf_a565_ca64ab2dab50.pdf
Parties
First Plaintiff: Wiseline Corporation Limited; Second Plaintiff: Spaceways Holdings Limited; First Defendant: R Hockey in her capacity as Executrix of the Estate of the late Russell Garland Hockey; Second Defendant: R Hockey
Court
High Court
Jurisdiction
New Zealand
Judgment Date
8 May 2007
Procedural Posture
Civil (litigation Concerning Alleged Breaches, Insolvency and Costs) / Costs Determination (post Discontinuance and Security for Costs Dispute)
Outcome
Costs awarded to defendant (Rita Hockey) against Wiseline Corporation Limited, Spaceways Holdings Limited and, in the exercise of the Court's discretion, personally against Patrick Antony Darby.
Legal Topics
Security for Costs, Non Party Costs Orders, Causation for Costs Liability, Stay on Insolvency, Caveats, Executrix Liability
Civil Procedure Costs Insolvency Company Law Equity Security for Costs Non Party Costs Orders Causation for Costs Liability +3 more

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Parties

Wiseline Corporation Limited

First Plaintiff

Spaceways Holdings Limited

Second Plaintiff

R Hockey in her capacity as Executrix of the Estate of the late Russell Garland Hockey

First Defendant

R Hockey

Second Defendant

Procedural Posture

Civil (litigation Concerning Alleged Breaches, Insolvency and Costs) / Costs Determination (post Discontinuance and Security for Costs Dispute)

Legal Issues

  1. 1 Whether costs awarded to the defendant should be paid by the plaintiff companies
  2. 2 Whether a non-party (Patrick Antony Darby) can be ordered to pay costs personally
  3. 3 Whether causation is established linking Darby's control/funding to the litigation and costs

Ratio Decidendi

The judge found on the balance of probabilities that Patrick Antony Darby controlled and effectively funded the insolvent plaintiff companies, that security for costs had expired leaving no practical recovery against the companies, that causation linked Darby's conduct to the costs incurred, that the Court had jurisdiction to order costs against a non-party in these circumstances, and that in the exercise of judicial discretion it was just to order Darby personally to pay the costs awarded against Wiseline and Spaceways.

Court Disposition

Costs awarded to defendant (Rita Hockey) against Wiseline Corporation Limited, Spaceways Holdings Limited and, in the exercise of the Court's discretion, personally against Patrick Antony Darby.

Orders

  • Wiseline Corporation Limited to pay existing costs orders in favour of Rita Hockey totalling 41,146.86 NZD
  • Wiseline Corporation Limited to pay an additional global costs award of 20,000.00 NZD