COMMERCIAL FINANCE AND SECURITIES LIMITED v S B BOADEN [2014] NZHC 1236

COMMERCIAL FINANCE AND SECURITIES LIMITED v S B BOADEN [2014] NZHC 1236

On objective assessment the defendant vested apparent authority in his employee over an extended commercial relationship; CFSL reasonably relied on that apparent authority in advancing funds so the defendant has no arguable defence to the $200,000 drawdown and the default judgment stands; however aspects of the claim (notably a $35,500 advance and the interest calculation given long delay in enforcement) require further consideration, so the application to set aside is adjourned pending those issues.

Citation
[2014] NZHC 1236
Parties
Plaintiff/respondent: Commercial Finance and Securities Limited; Defendant/applicant: Stuart Bruce Boaden
Court
High Court
Jurisdiction
New Zealand
Judgment Date
4 June 2014
Procedural Posture
Application to Set Aside Default Judgment / Interim Decision Adjourned to 19 June 2014
Outcome
Application to set aside judgment adjourned; court finds no arguable defence to the $200,000 drawdown and upholds judgment in principle but directs further consideration of the $35,500 component and interest before final enforcement.
Legal Topics
Setting Aside Judgment, Apparent/ostensible Authority, Guarantor Liability, Agent Fraud, Service of Proceedings, Bankruptcy Notice, Interest Calculation
Civil Procedure Agency Law Contract Guarantee Fraud Insolvency Setting Aside Judgment Apparent/ostensible Authority +5 more

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Parties

Commercial Finance and Securities Limited

Plaintiff/respondent

Stuart Bruce Boaden

Defendant/applicant

Procedural Posture

Application to Set Aside Default Judgment / Interim Decision Adjourned to 19 June 2014

Legal Issues

  1. 1 Whether the default judgment should be set aside
  2. 2 Whether guarantor (defendant) is liable where agent acted without/with ostensible authority
  3. 3 Whether defendant has a substantial defence and reasonable explanation for delay

Ratio Decidendi

On objective assessment the defendant vested apparent authority in his employee over an extended commercial relationship; CFSL reasonably relied on that apparent authority in advancing funds so the defendant has no arguable defence to the $200,000 drawdown and the default judgment stands; however aspects of the claim (notably a $35,500 advance and the interest calculation given long delay in enforcement) require further consideration, so the application to set aside is adjourned pending those issues.

Court Disposition

Application to set aside judgment adjourned; court finds no arguable defence to the $200,000 drawdown and upholds judgment in principle but directs further consideration of the $35,500 component and interest before final enforcement.

Orders

  • Setting aside application adjourned to 11:45am on 19 June 2014 when bankruptcy application will be called
  • Interim finding that defendant has no arguable defence to the $200,000 component of the judgment (subject to final determination on interest and the $35,500 item)