JO AND KWON V JOHNSTON HC CHCH CIV 2009-409-000741

JO AND KWON V JOHNSTON HC CHCH CIV 2009-409-000741

Because the plaintiffs possess funds abroad that are not directly enforceable by the defendants and previous offers of security were unreliable, balanced against the defendants' likely substantial trial costs and the arguable but uncertain quantum of the plaintiffs' claim, the court ordered security for costs of $40,000 and stayed the proceedings pending payment as a proportionate protective measure.

Citation
openlaw-fa497769_cf0b_4c91_826d_93bd1f681e58.pdf
Parties
Plaintiffs: Namgeun Jo and Soon Hee Kwon; First Defendant: Bernard Johnston; Second Defendant: Southern Hospitality Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
2 October 2012
Procedural Posture
Civil Negligence and Contract Dispute Concerning Building Consent and Professional Advice / Interlocutory Application for Security for Costs (pre Trial)
Outcome
Security for costs granted in favour of the first defendant and proceedings stayed pending payment of the ordered security.
Legal Topics
Security for Costs, Negligence, Summary Judgment, Enforcement of Foreign Assets, Stay of Proceedings
Civil Procedure Tort Contract Building and Construction Law Security for Costs Negligence Summary Judgment Enforcement of Foreign Assets +1 more

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Parties

Namgeun Jo and Soon Hee Kwon

Plaintiffs

Bernard Johnston

First Defendant

Southern Hospitality Limited

Second Defendant

Procedural Posture

Civil Negligence and Contract Dispute Concerning Building Consent and Professional Advice / Interlocutory Application for Security for Costs (pre Trial)

Legal Issues

  1. 1 Whether security for costs should be ordered
  2. 2 Whether plaintiffs' overseas assets (Korea) are accessible for enforcement
  3. 3 Whether the plaintiffs' claim is arguable and therefore entitled to access to the courts

Ratio Decidendi

Because the plaintiffs possess funds abroad that are not directly enforceable by the defendants and previous offers of security were unreliable, balanced against the defendants' likely substantial trial costs and the arguable but uncertain quantum of the plaintiffs' claim, the court ordered security for costs of $40,000 and stayed the proceedings pending payment as a proportionate protective measure.

Court Disposition

Security for costs granted in favour of the first defendant and proceedings stayed pending payment of the ordered security.

Orders

  • Plaintiffs to provide security for costs in the sum of $40,000 in favour of the first defendant within one month from 28 September 2012
  • Proceedings stayed pending payment of the $40,000 security