3 Jul 2014
DOWNEY v HOLLAND [2014] NZHC 1546
- Citation
- [2014] NZHC 1546
- Court
- High Court
The Court held the Australian Part X bankruptcy proceeding qualifies as an insolvency proceeding and as a main foreign proceeding for recognition under art 17; recognition triggers the automatic stay under art 20(1)(a); however, the Court exercised its power under art 20(2) to permit HCL to continue only its fourth cause of action (breach of fiduciary duties) and prevented recovery of costs or disbursements, thereby limiting the stay exception to the form of relief the controlling trustee could recognise.