New Zealand Case Law: Decisions & Judgments

Topic

Liquidator directions

Legal area

Court

12 Dec 2022

GRANT v Q S BUILDING LIMITED [2022] NZHC 3342

Citation

[2022] NZHC 3342
Court

High Court

The Court accepted the evidence of QSB's director and expert (Mr Stevenson and Mr Hanlon) over the liquidators' expert because there was no agreed works programme, evidence showed Stanley directed and changed sequences causing delays, and the liquidator lacked direct evidentiary support for large deductions; accordingly QSB's quantified claim was proved at $413,136.19 plus GST and interest to liquidation date, resulting in an admitted claim of $618,033.88.
17 Sept 2021

AVOCA HOLDINGS LTD v DENNEHY [2021] NZHC 2443

Citation

[2021] NZHC 2443
Court

High Court

The Court confirmed admission of Buddle Findlay's proved invoice because it was supported by invoices and unchallenged; it directed rejection of RPB Solutions Ltd's claim as statute‑barred and rejection of Denis Dennehy's claims because they lacked evidential support and principally concerned inter‑shareholder disputes (share ownership and trust issues) that are not admissible claims in the company's liquidation; costs awarded to the liquidator on a 2B basis to be paid from company assets.
31 Jul 2020

MANNING v SMITH [2020] NZHC 1888

Citation

[2020] NZHC 1888
Court

High Court

Clause 3.4 of the constitution, read with the SSA that was in final form and plainly contemplated at adoption, required shareholders to sign or be bound by the SSA within one month; the Smith entities failed to sign or accede within that period so their issued shares became void (effective on or about 4 August 2018); equitable limitation did not apply to save those shares.
14 Jul 2020

JACKSON and GRAHAM v FORESTLANDS (NO.2_x001e_NO.20) LIMITED [2020] NZHC 1683

Citation

[2020] NZHC 1683
Court

High Court

Liquidators may withhold dividends from shareholders who have not proved title or provided payment details and need not undertake further tracing; where a Class B share is held jointly and not all joint holders have satisfied the liquidators, the liquidators must pay the whole dividend for that share to the joint holder(s) who have satisfied them (not a fractional payment).
4 Dec 2019

BETHELL v PAPANUI PROPERTIES LIMITED [2019] NZHC 3169

Citation

[2019] NZHC 3169
Court

High Court

The Court held that funds paid by PMCM clients to Arrow for the specific purpose of paying trade contractors were held on an implied express trust for those clients (pass-through/payments as agent), whereas amounts paid to Arrow for its own fees, margin and Purchase Order Suppliers were not trust funds and remain Arrow's assets in liquidation; retentions deducted pre-1 April 2017 that were paid into Arrow's trading account and dissipated (account overdrafts) ceased to exist as trust property, while post-1 April 2017 retentions placed into a separate retentions account are held on trust for th…
30 Aug 2019

VLASIC v ZELANDE LTD & OR [2019] NZHC 2152

Citation

[2019] NZHC 2152
Court

High Court

Section 284 permits the liquidators to seek court directions on the validity, existence of a lien and priority of a creditor's claim in the liquidation; there is no jurisdictional requirement that complex common law damage claims be commenced as separate ordinary proceedings before such directions can be sought; procedural form is a matter of case management and contested factual/damages matters may be reserved for a further hearing with appropriate pleadings and discovery; insolvency set-off under s 310 is relevant to quantification of claims.
25 May 2018

British Pub Supplies Limited (In Liquidation) v The English Corner Shop Limited (In Liquidation) [2018] NZHC 1197

Citation

[2018] NZHC 1197
Court

High Court

The court held the $1,300 weekly payments were consideration for tangible assets owned by British Pub (not a lease payment solely of English Corner) and the GSA over English Corner did not extend to those payments or British Pub's assets; accordingly the liquidators of British Pub were entitled to retain the weekly payments held in their solicitors' trust account and to deduct reasonable fees and expenses; leave was reserved for further directions.

New Zealand Case Law

GRANT v Q S BUILDING LIMITED [2022] NZHC 3342

AVOCA HOLDINGS LTD v DENNEHY [2021] NZHC 2443

MANNING v SMITH [2020] NZHC 1888

JACKSON and GRAHAM v FORESTLANDS (NO.2_x001e_NO.20) LIMITED [2020] NZHC 1683

BETHELL v PAPANUI PROPERTIES LIMITED [2019] NZHC 3169

VLASIC v ZELANDE LTD & OR [2019] NZHC 2152

British Pub Supplies Limited (In Liquidation) v The English Corner Shop Limited (In Liquidation) [2018] NZHC 1197