SUPER POWER EARTHMOVING LIMITED v DREAMHOME CONSTRUCTION GROUP LIMITED [2023] NZHC 2265

SUPER POWER EARTHMOVING LIMITED v DREAMHOME CONSTRUCTION GROUP LIMITED [2023] NZHC 2265

Leave was granted because Dreamhome demonstrated a substantial and arguable dispute about the underlying debts and payment claims, provided a reasonable explanation for the delay (background dispute and holiday service), solvency was neutral (core debt paid into solicitor's trust) and the balance of prejudice and overall justice favoured allowing the defence to be filed out of time.

Citation
[2023] NZHC 2265
Parties
Plaintiff/respondent: Super Power Earthmoving Limited; Defendant/applicant: Dreamhome Construction Group Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 August 2023
Procedural Posture
Application to Put Company Into Liquidation (companies Act/statutory Demand) / Interlocutory Application for Leave to File Statement of Defence Out of Time (liquidation Proceedings)
Outcome
Leave granted to Dreamhome to file its statement of defence out of time
Legal Topics
Statutory Demand, Liquidation, Payment Claims, Construction Contracts Act 2002, Extension of Time, Setting Aside Statutory Demand
Company Law Construction Law Procedural Law Contract Law Statutory Demand Liquidation Payment Claims Construction Contracts Act 2002 +2 more

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Parties

Super Power Earthmoving Limited

Plaintiff/respondent

Dreamhome Construction Group Limited

Defendant/applicant

Procedural Posture

Application to Put Company Into Liquidation (companies Act/statutory Demand) / Interlocutory Application for Leave to File Statement of Defence Out of Time (liquidation Proceedings)

Legal Issues

  1. 1 Whether defendant has an arguable defence to the liquidation application
  2. 2 Whether payment claims complied with the Construction Contracts Act and whether payment schedules were provided
  3. 3 Validity and amount of the statutory demand (including claimed interest)

Ratio Decidendi

Leave was granted because Dreamhome demonstrated a substantial and arguable dispute about the underlying debts and payment claims, provided a reasonable explanation for the delay (background dispute and holiday service), solvency was neutral (core debt paid into solicitor's trust) and the balance of prejudice and overall justice favoured allowing the defence to be filed out of time.

Court Disposition

Leave granted to Dreamhome to file its statement of defence out of time

Orders

  • Leave is granted to Dreamhome to file its statement of defence out of time.
  • Preliminary view that costs should lie where they fall; counsel to attempt agreement. If no agreement within 20 working days, Dreamhome's counsel to file a costs memorandum (max five pages) within 5 working days thereafter and Super Power's counsel to file a reply (max five pages) within 5 working days of receipt.