New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Effect of cancellation on contractual obligations
  • 9 Aug 2018

    JNJ HOLDINGS LIMITED v KENT SING TRADING COMPANY LIMITED & ORS [2018] NZHC 2022 [9 August 2018]

    Citation
    [2018] NZHC 2022
    Court
    High Court

    Clause 14.1(b) was construed as sufficiently broad to include solicitor-client (indemnity) costs for proceedings arising out of breaches committed prior to termination; cancellation did not extinguish JNJ's right to indemnity for pre-termination breaches. However significant deficiencies in particularity, overlap, inclusion of non-recoverable items and unreasonable quantum justified a global reduction of 70% to the claimed sums, producing awarded amounts of $61,146.18 against Kent Sing and guarantors and $21,491.10 against General Goods on a 2B basis.

    • Lease termination
    • Contractual indemnity clause
    • Solicitor-client costs
    • Costs assessment
    • Effect of cancellation on contractual obligations