BROWN v BROWN [2017] NZHC 350

BROWN v BROWN [2017] NZHC 350

Ron Brown's claim was assessed as having very limited prospects because the 2011 pecuniary penalty and Woolford J's orders meant Ron's beneficial interest was intended to be applied to satisfy the Crown unless sold to a family member; the 2013 sale to Teresa therefore complied with that order and cannot be undermined by alleging a back‑transfer arrangement which would defeat the court order and be illegal or dishonest. Given Ron's proven impecuniosity and the weak merits, security for costs was appropriate but tempered to preserve access to the court by fixing security at NZD 10,000.

Citation
[2017] NZHC 350
Parties
First Plaintiff: Raymond William Brown; Second Plaintiff: Ronald Terence Brown; First Defendant: Rona Teresa Brown; Second Defendant: Sandrine Anderson trading as Sandi Anderson
Court
High Court
Jurisdiction
New Zealand
Judgment Date
2 March 2017
Procedural Posture
Civil Property/equity Dispute / Security for Costs Application (pre Trial)
Outcome
Security for costs ordered against second plaintiff Ronald Terence Brown in the sum of NZD 10,000; conditional stay directions imposed pending payment
Legal Topics
Security for Costs, Resulting Trust, Constructive Trust, Pecuniary Penalty, Illegality of Contracts, Impecuniosity, Forfeiture
Property Law Equity (trusts) Civil Procedure Criminal Proceeds Law Security for Costs Resulting Trust Constructive Trust Pecuniary Penalty +3 more

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Parties

Raymond William Brown

First Plaintiff

Ronald Terence Brown

Second Plaintiff

Rona Teresa Brown

First Defendant

Sandrine Anderson trading as Sandi Anderson

Second Defendant

Procedural Posture

Civil Property/equity Dispute / Security for Costs Application (pre Trial)

Legal Issues

  1. 1 Whether to order security for costs against the second plaintiff (Ron Brown)
  2. 2 Whether Ron Brown has sufficient merits to justify denial of security given impecuniosity
  3. 3 Whether Ron's asserted oral understanding and resulting/constructive trust claims are inconsistent with or defeated by the pecuniary penalty order and sale to family members

Ratio Decidendi

Ron Brown's claim was assessed as having very limited prospects because the 2011 pecuniary penalty and Woolford J's orders meant Ron's beneficial interest was intended to be applied to satisfy the Crown unless sold to a family member; the 2013 sale to Teresa therefore complied with that order and cannot be undermined by alleging a back‑transfer arrangement which would defeat the court order and be illegal or dishonest. Given Ron's proven impecuniosity and the weak merits, security for costs was appropriate but tempered to preserve access to the court by fixing security at NZD 10,000.

Court Disposition

Security for costs ordered against second plaintiff Ronald Terence Brown in the sum of NZD 10,000; conditional stay directions imposed pending payment

Orders

  • Proceeding not immediately stayed to allow second plaintiff opportunity to raise funds
  • Second plaintiff to pay security of costs of NZD 10,000 by close of pleadings date 12 April 2017