WKB LIMITED V W.K. BACKHOUSE LIMITED AND ORS HC WANG CIV-2006-483-395

WKB LIMITED V W.K. BACKHOUSE LIMITED AND ORS HC WANG CIV-2006-483-395

Defendants first and fourth had no arguable defence to the quantum claims; interest on the unpaid purchase price was properly calculated on the agreed monthly average balance method; category 2 stock debt was acknowledged and owing; interest under s87 was payable on the category 2 stock debt; indemnity costs were payable under the Director's Guarantee—therefore summary judgment was granted against the first and fourth defendants for the total sum of $191,297.74 and judgment entered against the third defendant per his admission.

Citation
openlaw-2aa708b1_3c0d_4a0b_871c_211366f5a11d.pdf
Parties
Plaintiff: WKB Limited; First Defendant Purchaser: W.K. Backhouse Limited; Second Defendant Guarantor/trust: Rowland-Jones Family Trust (trustees); Third Defendant Guarantor (admitted): Simon Nicholas Rowland-Jones; Fourth Defendant Guarantor/director: Noel Patrick Boyle
Court
High Court
Jurisdiction
New Zealand
Judgment Date
11 May 2007
Procedural Posture
Civil Contract (sale of Business) / Summary Judgment Application; Final Judgment Granted
Outcome
Summary judgment granted for plaintiff WKB Limited against first defendant W.K. Backhouse Limited and fourth defendant Noel Patrick Boyle; judgment entered against third defendant Simon Nicholas Rowland-Jones per admission; proceedings discontinued as to second defendant Rowland-Jones Family Trust.
Legal Topics
Summary Judgment, Guarantee and Indemnity, Calculation of Contractual Interest, Judicature Act Interest, Indemnity Costs
Contract Law Civil Procedure Suretyship and Guarantees Remedies Interest and Costs Summary Judgment Guarantee and Indemnity Calculation of Contractual Interest Judicature Act Interest +1 more

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Parties

WKB Limited

Plaintiff

W.K. Backhouse Limited

First Defendant Purchaser

Rowland-Jones Family Trust (trustees)

Second Defendant Guarantor/trust

Simon Nicholas Rowland-Jones

Third Defendant Guarantor (admitted)

Noel Patrick Boyle

Fourth Defendant Guarantor/director

Procedural Posture

Civil Contract (sale of Business) / Summary Judgment Application; Final Judgment Granted

Legal Issues

  1. 1 Whether defendants had any arguable defence to the plaintiff's claim such that summary judgment should be refused
  2. 2 Proper method of calculating contractual interest on unpaid purchase price
  3. 3 Liability of guarantors/directors for purchase price, category 2 stock and indemnity costs under Guarantees

Ratio Decidendi

Defendants first and fourth had no arguable defence to the quantum claims; interest on the unpaid purchase price was properly calculated on the agreed monthly average balance method; category 2 stock debt was acknowledged and owing; interest under s87 was payable on the category 2 stock debt; indemnity costs were payable under the Director's Guarantee—therefore summary judgment was granted against the first and fourth defendants for the total sum of $191,297.74 and judgment entered against the third defendant per his admission.

Court Disposition

Summary judgment granted for plaintiff WKB Limited against first defendant W.K. Backhouse Limited and fourth defendant Noel Patrick Boyle; judgment entered against third defendant Simon Nicholas Rowland-Jones per admission; proceedings discontinued as to second defendant Rowland-Jones Family Trust.

Orders

  • Summary judgment for plaintiff WKB Limited against W.K. Backhouse Limited and Noel Patrick Boyle for total sum $191,297.74
  • Judgment entered against third defendant Simon Nicholas Rowland-Jones in amounts admitted (outstanding monthly interest $30,249.19; interest $518.43; category 2 stock $142,879.29; interest on category 2 stock from 17 Nov 2006 at 7.5% per annum; costs $24,275.09 as specified)