New Zealand Case Law: Decisions & Judgments

Topic

Purchase money security interest

Legal area

Court

19 Oct 2015

PALA v BTC GROUP LIMITED [2015] NZCA 487

Citation

[2015] NZCA 487
Court

Court of Appeal

The Court held there was no evidential foundation that BTC appointed the administrator as its agent or took possession of the stock; the administrator acted as Shanton's agent bound to account as company agent, so guarantors could not rely on an agency-based defence, but appellants have an arguable defence under s50(2) to payment for the undelivered consignment, warranting reduction of the judgment by USD 72,816.80.
26 Apr 2013

TEGEL FOODS LIMITED V COASTAL CUISINE NZ LIMITED HC AK CIV-2012-404-5019

Citation

openlaw-e74f4dc7_2f4b_494a_a288_a2c46b086586.pdf
Court

High Court

Where a creditor holds a valid, unconditional guarantee and a secured purchase-money interest, the creditor retains the choice of remedies and, absent a proper basis for marshalling or contractual limit, guarantors can be sued immediately; the guarantees here either excluded marshalling or were ineffective to invoke it, and summary judgment was appropriate for the calculated outstanding sum and contractual costs.
19 Mar 2012

CAREY & ANOR v SMITH & ORS HC AK CIV 2011-404-5819

Citation

openlaw-fb638992_4e8e_4763_ac62_f539ab216ff7.pdf
Court

High Court

Summary judgment was declined because defendants put forward a plausible, uncontradicted account creating real questions to be tried on pre‑liquidation uplift (so summary disposal inappropriate), and because plaintiffs' post‑liquidation proprietary rights were undermined by ANZ's prior perfected security interest given plaintiffs failed to register their purchase money security interest; the novel contention that liquidation by shareholders/directors amounted to conversion also failed on the facts (shareholders voted for liquidation and liquidation per se did not constitute conduct inconsiste…
11 Dec 2006

RICHARD GRANT SIMPSON AND RONALD WALTON AS RECEIVERS OF SERVICE FOODS MANAWATU LIMITED (IN RECEIVERSHIP AND IN LIQUIDATION) AND ANOR V NEW ZEALAND ASSOCIATED REFRIGERATED FOOD DISTRIBUTORS LIMITED CA CA36/06

Citation

openlaw-c9ec5a91_f113_4c97_9d77_062451d341dd.pdf
Court

Court of Appeal

The Court held the parties' terms of trade created a security interest; the financing statement describing collateral as 'all present and after-acquired property' did not render the registration invalid or 'seriously misleading' under s149 and therefore NZARFD perfected its security interest by registration; perfection is limited to what the security agreement actually covers (goods supplied and unpaid and their proceeds); accordingly the appeal was dismissed.
30 Jan 2006

SERVICE FOODS MANAWATU LTD (RECEIVERS) V NZARFD HC WN CIV-2005-485-1820

Citation

openlaw-3cc8b539_c6c4_4cd0_988f_48f75ab9ee28.pdf
Court

High Court

The written terms of trade created a purchase money security interest in goods supplied and their traceable proceeds; the Financing Statement registered by NZARFD describing collateral as 'all present and after-acquired property' complied with statutory and regulatory registration requirements and was not 'seriously misleading', so NZARFD perfected its PMSI and has priority to the goods supplied and their traceable proceeds; Service Foods must account for the value of the collateral.

New Zealand Case Law

PALA v BTC GROUP LIMITED [2015] NZCA 487

TEGEL FOODS LIMITED V COASTAL CUISINE NZ LIMITED HC AK CIV-2012-404-5019

CAREY & ANOR v SMITH & ORS HC AK CIV 2011-404-5819

RICHARD GRANT SIMPSON AND RONALD WALTON AS RECEIVERS OF SERVICE FOODS MANAWATU LIMITED (IN RECEIVERSHIP AND IN LIQUIDATION) AND ANOR V NEW ZEALAND ASSOCIATED REFRIGERATED FOOD DISTRIBUTORS LIMITED CA CA36/06

SERVICE FOODS MANAWATU LTD (RECEIVERS) V NZARFD HC WN CIV-2005-485-1820