New Zealand Case Law: Decisions & Judgments

Topic

Protected transactions

Legal area

Court

25 Jul 2014

MANGAWHAI RATEPAYERS' AND RESIDENTS' ASSOCIATION INC v KAIPARA DISTRICT COUNCIL [2014] NZHC 1742

Citation

[2014] NZHC 1742
Court

High Court

The Council's decisions to enter into the EcoCare agreements and to adopt Modification 1 breached Part 6 LGA 2002 and are unlawful but the loan contracts are "protected transactions" under ss117–118 LGA 2002 and therefore enforceable by creditors; the Validation Act retrospectively validated the historical rates and related plans for all purposes so interim relief to prevent collection was not justified; the Council retains the ability to levy future rates to meet the lawful debt but must consider ratepayers' best interests and alternatives before so doing; declarations as specified were orde…
28 May 2014

MANGAWHAI RATEPAYERS' AND RESIDENTS' ASSOCIATION INC v KAIPARA DISTRICT COUNCIL [2014] NZHC 1147

Citation

[2014] 3 NZLR 85
Court

High Court

The Court held that the EcoCare agreements (2005) and Modification 1 (2006) were entered into in breach of Part 6 and the s83 special consultative procedure of the Local Government Act and are unlawful; financing contracts accompanied by a s118 chief executive certificate constitute protected transactions enforceable by creditors notwithstanding underlying procedural illegality; the Kaipara Validation Act 2013 unequivocally validates the specified historical rates and assessments so the Court cannot declare those validated rates unlawful and the Act's removal of the ability to obtain effectiv…

New Zealand Case Law

MANGAWHAI RATEPAYERS' AND RESIDENTS' ASSOCIATION INC v KAIPARA DISTRICT COUNCIL [2014] NZHC 1742

MANGAWHAI RATEPAYERS' AND RESIDENTS' ASSOCIATION INC v KAIPARA DISTRICT COUNCIL [2014] NZHC 1147