DHANI & ORS v THE TENANCY TRIBUNAL & ORS [2014] NZHC 3265

DHANI & ORS v THE TENANCY TRIBUNAL & ORS [2014] NZHC 3265

The threshold in r 5.45(1)(b) was not established on the evidence: credible material showed Dhani Trustees Ltd owned an adjoining property of significant value and there was no evidence as to the amounts owing under the registered mortgage and later agreement to mortgage; because one co-plaintiff (the company) appeared able to meet any costs award, security for costs against the plaintiffs was not just and the applications were declined.

Citation
[2014] NZHC 3265
Parties
First Plaintiff: USHA KIRAN DHANI; Second Plaintiff: SURESH DHANI; Third Plaintiff: SASHI DHANI; Fourth Plaintiff: DHANI TRUSTEES LIMITED (as trustee of the BISH DHANI FAMILY TRUST); First Defendant: THE TENANCY TRIBUNAL; Second Defendant: SASHA KUMAR; Second Defendant: SHAILENDRA KUMAR; Third Defendant: HAIYAN YANG
Court
High Court
Jurisdiction
New Zealand
Judgment Date
15 December 2014
Procedural Posture
Civil (property, Contract, Equitable and Negligence Claims Arising From Family Dispute; Judicial Review History) / Interlocutory Application for Security for Costs Decided; Matter Placed on Mentions List for Pre Trial Timetabling
Outcome
Applications for security for costs dismissed; proceedings placed on mentions list for first available date in 2015; costs awarded to plaintiffs on a 2B basis against the second and third defendants jointly.
Legal Topics
Security for Costs, Undue Influence, Unconscionable Bargain, Breach of Retainer, Negligence, Costs Order, Judicial Review of Tribunal Decision
Civil Procedure Property Law Equity Contract Professional Negligence Family Law Security for Costs Undue Influence +5 more

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Parties

USHA KIRAN DHANI

First Plaintiff

SURESH DHANI

Second Plaintiff

SASHI DHANI

Third Plaintiff

DHANI TRUSTEES LIMITED (as trustee of the BISH DHANI FAMILY TRUST)

Fourth Plaintiff

THE TENANCY TRIBUNAL

First Defendant

SASHA KUMAR

Second Defendant

SHAILENDRA KUMAR

Second Defendant

HAIYAN YANG

Third Defendant

Procedural Posture

Civil (property, Contract, Equitable and Negligence Claims Arising From Family Dispute; Judicial Review History) / Interlocutory Application for Security for Costs Decided; Matter Placed on Mentions List for Pre Trial Timetabling

Legal Issues

  1. 1 Whether r 5.45(1)(b) threshold for ordering security for costs is satisfied (reason to believe plaintiffs will be unable to pay defendants' costs)
  2. 2 Whether Dhani Trustees Ltd is insolvent or otherwise unable to meet any costs order
  3. 3 Whether one solvent co-plaintiff negates need for security for costs against other plaintiffs

Ratio Decidendi

The threshold in r 5.45(1)(b) was not established on the evidence: credible material showed Dhani Trustees Ltd owned an adjoining property of significant value and there was no evidence as to the amounts owing under the registered mortgage and later agreement to mortgage; because one co-plaintiff (the company) appeared able to meet any costs award, security for costs against the plaintiffs was not just and the applications were declined.

Court Disposition

Applications for security for costs dismissed; proceedings placed on mentions list for first available date in 2015; costs awarded to plaintiffs on a 2B basis against the second and third defendants jointly.

Orders

  • Applications for security for costs under r 5.45 dismissed
  • Proceeding to be placed in the mentions list on the first available date in 2015