SOPHIE LAI v RICHARD HUANG [2018] NZHC 1207

SOPHIE LAI v RICHARD HUANG [2018] NZHC 1207

Immediate stay under r 7.48 was declined because plaintiffs demonstrated genuine inability to pay, prior security ($10,000 of which $5,000 was to be paid out) had already been ordered and received in part, plaintiffs had begun steps to pay the Court of Appeal balance, and the court must balance access to justice against defendants' protection; accordingly the stay was adjourned to be heard with the defendants' increased security application and the trustees removal application was vacated to be heard after determination of security issues; an interim payment of $2,979.75 was ordered within 15 working days.

Citation
[2018] NZHC 1207
Parties
First Plaintiff: Sophie Lai; Second Plaintiff: Richard Huang; First Defendant: Liu Shun-Mei Huang; Second Defendant: Chun-Ching Huang; Third Defendant: Chun-Ta Huang; Fourth Defendant (trustee): Liu Shun-Mei Huang; Fourth Defendant (trustee): Chun-Ching Huang
Court
High Court
Jurisdiction
New Zealand
Judgment Date
25 May 2018
Procedural Posture
Civil (property/trusts) Interlocutory / Interlocutory Applications Including Security for Costs and Stay Application
Outcome
Immediate stay declined; stay and increased security applications adjourned; trustees removal application vacated and adjourned; interim payment ordered
Legal Topics
Security for Costs, Stay for Non Compliance With Interlocutory Orders, Enforcement of Costs Orders, Removal of Trustees, Constructive Trust, Testamentary Promises, Family Protection Act Claims, Legal Aid Impact on Costs
Property Law Trusts Succession/estates Civil Procedure Costs Family Law Resource Management Security for Costs +7 more

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Parties

Sophie Lai

First Plaintiff

Richard Huang

Second Plaintiff

Liu Shun-Mei Huang

First Defendant

Chun-Ching Huang

Second Defendant

Chun-Ta Huang

Third Defendant

Liu Shun-Mei Huang

Fourth Defendant (trustee)

Chun-Ching Huang

Fourth Defendant (trustee)

Procedural Posture

Civil (property/trusts) Interlocutory / Interlocutory Applications Including Security for Costs and Stay Application

Legal Issues

  1. 1 Whether the Court should exercise its r 7.48 High Court Rules power to stay proceedings for non-payment of interlocutory costs orders
  2. 2 Whether the trustees removal interlocutory application should be heard pending compliance with costs/security directions
  3. 3 Whether increased security for costs should be ordered and on what timetable

Ratio Decidendi

Immediate stay under r 7.48 was declined because plaintiffs demonstrated genuine inability to pay, prior security ($10,000 of which $5,000 was to be paid out) had already been ordered and received in part, plaintiffs had begun steps to pay the Court of Appeal balance, and the court must balance access to justice against defendants' protection; accordingly the stay was adjourned to be heard with the defendants' increased security application and the trustees removal application was vacated to be heard after determination of security issues; an interim payment of $2,979.75 was ordered within 15 working days.

Court Disposition

Immediate stay declined; stay and increased security applications adjourned; trustees removal application vacated and adjourned; interim payment ordered

Orders

  • Adjourn plaintiffs' application dated 21 March 2018 to remove fourth defendants as trustees for hearing after determination of the defendants' application for increased security for costs; vacate timetable directions of 17 May 2018 insofar as they relate to the trustees removal application
  • Decline defendants' application for an immediate stay under r 7.48; adjourn that application to be heard with the interlocutory applications for increased security for costs, joinder of Gini Huang, and any discovery applications