M SPENCER V JED RICE BUILDING CONTRACTORS LIMITED HC AK CIV 2007-404-007539

M SPENCER V JED RICE BUILDING CONTRACTORS LIMITED HC AK CIV 2007-404-007539

Application for restraint of advertising and stay was dismissed because the debt (court-ordered costs) was undisputed and payable, Jed Rice did not prove solvency sufficiently to justify postponing payment, the brief advertising did not constitute an abuse of process and no clear prejudice was shown, and thus there were no clear and persuasive grounds to stay the liquidation proceeding.

Citation
openlaw-4a8c526d_6ed2_4ae9_b3a4_ad5204997db0.pdf
Parties
Plaintiff/respondent: Mertsi Spencer; Defendant/applicant: Jed Rice Building Contractors Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 February 2008
Procedural Posture
Application for Liquidation Under the Companies Act 1993 / Application for Stay and Restraint of Advertising Under R 700 K (interim Application)
Legal Topics
Statutory Demand, Liquidation, Stay of Proceedings, Interim Injunction, Abuse of Process, Costs Orders, Advertising Restrictions
Companies Law Civil Procedure Insolvency Construction Law Statutory Demand Liquidation Stay of Proceedings Interim Injunction +3 more

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Parties

Mertsi Spencer

Plaintiff/respondent

Jed Rice Building Contractors Limited

Defendant/applicant

Procedural Posture

Application for Liquidation Under the Companies Act 1993 / Application for Stay and Restraint of Advertising Under R 700 K (interim Application)

Legal Issues

  1. 1 Whether a stay and restraint of advertising under r 700K should be granted
  2. 2 Whether the defendant's asserted solvency justifies a stay when the debt is undisputed
  3. 3 Whether breach of r 700J by advertising constituted an abuse of process

Ratio Decidendi

Application for restraint of advertising and stay was dismissed because the debt (court-ordered costs) was undisputed and payable, Jed Rice did not prove solvency sufficiently to justify postponing payment, the brief advertising did not constitute an abuse of process and no clear prejudice was shown, and thus there were no clear and persuasive grounds to stay the liquidation proceeding.