SOPAC HOLDINGS LIMITED V MONK HC AK CIV 2006-404-007031

SOPAC HOLDINGS LIMITED V MONK HC AK CIV 2006-404-007031

The Court found the defendant discharged the evidential onus of demonstrating a real risk the plaintiff company could not meet a costs award given lack of company financial disclosure, the director/shareholder's uncertain finances and history; exercising its discretion the Court ordered staged security for costs totalling $12,500 payable to the Registrar, and ordered the plaintiff to pay costs of the application on a 2B basis.

Citation
openlaw-43c56a50_1436_4de8_a708_86296d571585.pdf
Parties
Plaintiff/respondent: Sopac Holdings Limited; Defendant/applicant: Beverley Jean Monk
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 May 2007
Procedural Posture
Civil (fraudulent Misrepresentation) / Application for Security for Costs and Costs of That Application
Outcome
Security for costs ordered against plaintiff company; applicant successful on application for security and entitled to costs of the application
Legal Topics
Security for Costs, Costs Orders, Corporate Veil, Insolvency Risk
Civil Procedure Company Law Costs Security for Costs Costs Orders Corporate Veil Insolvency Risk

Case Brief

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Parties

Sopac Holdings Limited

Plaintiff/respondent

Beverley Jean Monk

Defendant/applicant

Procedural Posture

Civil (fraudulent Misrepresentation) / Application for Security for Costs and Costs of That Application

Legal Issues

  1. 1 Whether security for costs should be ordered against the plaintiff company
  2. 2 Whether the director/shareholder's personal financial position is relevant to security for costs
  3. 3 Appropriate amount and staging of security for costs

Ratio Decidendi

The Court found the defendant discharged the evidential onus of demonstrating a real risk the plaintiff company could not meet a costs award given lack of company financial disclosure, the director/shareholder's uncertain finances and history; exercising its discretion the Court ordered staged security for costs totalling $12,500 payable to the Registrar, and ordered the plaintiff to pay costs of the application on a 2B basis.

Court Disposition

Security for costs ordered against plaintiff company; applicant successful on application for security and entitled to costs of the application

Orders

  • Plaintiff to pay security for costs to the Registrar, High Court at Auckland: $5,000 within seven days
  • Plaintiff to pay further $5,000 within six months