New Zealand Case Law: Decisions & Judgments

Topic

Pari passu principle

Legal area

Court

9 Aug 2019

ROBT. JONES HOLDINGS LIMITED v ANTHONY JOHN MCCULLAGH AND STEPHEN MARK LAWRENCE [2019] NZSC 86

Citation

[2019] 1 NZLR 641
Court

Supreme Court

The Supreme Court held that s292's statutory definition of an 'insolvent transaction' is complete and no separate common law diminution requirement is to be read into s292; therefore a liquidator need only prove the statutory elements (payment 'by' the company within the specified period while insolvent and that the recipient received more than they would in liquidation) to void the transaction; the appeal was dismissed.
8 Jun 2017

EBERT CONSTRUCTION LIMITED v SANSON & ANOR [2017] NZCA 239

Citation

(2017) 14 TCLR 607
Court

Court of Appeal

The Court held the challenged cash payments were made by the financier (BOSI) pursuant to its own direct contractual obligation to the builder under the direct agreement and not 'by' the company (TPL) for purposes of s292, and therefore they were not voidable insolvent transactions; the apartment conveyance merely implemented a 2006 arrangement that conferred equitable title pre-liquidation and thus was not an insolvent transaction.
19 Jun 2012

ACS (NZ) LIMITED HC AK CIV-2012-404-002217

Citation

openlaw-21404a90_54c2_433e_824e_d69eb119ede1.pdf
Court

High Court

The Court approved the scheme because ACS complied with meeting and disclosure requirements, the class was properly represented and the statutory majorities acted bona fide, the scheme is one an intelligent and honest businessperson might reasonably approve, it provides a less disruptive, more efficient run-off than liquidation, offers additional financial support including a $22m top-up, and contains sufficient safeguards (creditors' committee, administrator controls and undertakings) to address Reserve Bank and creditor concerns.
27 Jul 2009

TASMAN PACIFIC AIRLINES OF NZ LTD (IN LIQUIDATION) AND TASMAN PACIFIC REGIONAL AIRLINES LTD (IN LIQUIDATION) AND ANOR V NEW ZEALAND AIRLINE PILOTS' ASSOCIATION AND ANOR HC AK CIV-2009-404-0090

Citation

openlaw-0a221c66_c4f5_4fda_9453_37661a859d56.pdf
Court

High Court

The Court held the liquidators' application to pay the remaining funds into the Liquidation Surplus Account was not reasonable or efficient under s253 and inconsistent with the pari passu distribution obligation in s313; the application was dismissed and the liquidators must carry out a final distribution to unsecured creditors, after which any residual funds may be paid into the Liquidation Surplus Account following a further application if necessary.

New Zealand Case Law

ROBT. JONES HOLDINGS LIMITED v ANTHONY JOHN MCCULLAGH AND STEPHEN MARK LAWRENCE [2019] NZSC 86

EBERT CONSTRUCTION LIMITED v SANSON & ANOR [2017] NZCA 239

ACS (NZ) LIMITED HC AK CIV-2012-404-002217

TASMAN PACIFIC AIRLINES OF NZ LTD (IN LIQUIDATION) AND TASMAN PACIFIC REGIONAL AIRLINES LTD (IN LIQUIDATION) AND ANOR V NEW ZEALAND AIRLINE PILOTS' ASSOCIATION AND ANOR HC AK CIV-2009-404-0090