GLENVAR PROPERTY HOLDINGS LTD (IN LIQUIDATION) v REYNOLDS [2017] NZHC 2463 [6 October 2017]

GLENVAR PROPERTY HOLDINGS LTD (IN LIQUIDATION) v REYNOLDS [2017] NZHC 2463 [6 October 2017]

The Court accepted the direct evidence of Ms Cui and Ms Lin over the liquidator's documentary inferences, held there was no resulting trust or liability on BDK for the $1,000, found the $130,000 payment to Ms Cui proved but applied s310 to set off the $801,000 paid by Ms Lin (acting as agent for Ms Cui) against Glenvar's claims, treated the $177,465.99 payments as reimbursements, and on that basis dismissed the plaintiffs' claims and entered judgment for the defendants.

Citation
[2017] NZHC 2463
Parties
First Plaintiff: Glenvar Property Holdings Ltd (In Liquidation); Second Plaintiff: Grant Bruce Reynolds (as Liquidator of Glenvar Property Holdings Ltd); First Defendant: Terra3 Limited (formerly BDK Holdings Limited); Second Defendant: Shiai Cui
Court
High Court
Jurisdiction
New Zealand
Judgment Date
6 October 2017
Procedural Posture
Companies Act Liquidation Claim / Judgment
Outcome
Judgment for the defendants; plaintiffs' claims dismissed in entirety
Legal Topics
Set Off Under S310, Mutual Credit, Liquidator's Claims, Resulting Trust, Privity of Contract, Proof of Debt, Opinion Evidence Admissibility
Company Law Insolvency Equity and Trusts Contract Law Evidence Set Off Under S310 Mutual Credit Liquidator's Claims +4 more

Case Brief

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Parties

Glenvar Property Holdings Ltd (In Liquidation)

First Plaintiff

Grant Bruce Reynolds (as Liquidator of Glenvar Property Holdings Ltd)

Second Plaintiff

Terra3 Limited (formerly BDK Holdings Limited)

First Defendant

Shiai Cui

Second Defendant

Procedural Posture

Companies Act Liquidation Claim / Judgment

Legal Issues

  1. 1 Whether Glenvar made five pre-liquidation advances to the defendants
  2. 2 Whether a resulting trust arises in respect of the $1,000 deposit
  3. 3 Whether BDK or Ms Cui repaid the $130,000 advance

Ratio Decidendi

The Court accepted the direct evidence of Ms Cui and Ms Lin over the liquidator's documentary inferences, held there was no resulting trust or liability on BDK for the $1,000, found the $130,000 payment to Ms Cui proved but applied s310 to set off the $801,000 paid by Ms Lin (acting as agent for Ms Cui) against Glenvar's claims, treated the $177,465.99 payments as reimbursements, and on that basis dismissed the plaintiffs' claims and entered judgment for the defendants.

Court Disposition

Judgment for the defendants; plaintiffs' claims dismissed in entirety

Orders

  • Defendants entitled to costs on a Category 2B basis and disbursements
  • If parties cannot agree costs, defendants may apply by memorandum filed and served by 27 October 2017