New Zealand Case Law: Decisions & Judgments

Topic

Secured creditor status

Legal area

Court

21 Jun 2023

BODY CORPORATE 172108 v CUMMINS [2023] NZHC 1535

Citation

[2023] NZHC 1535
Court

High Court

Application to halt the adjudication dismissed: an unliquidated contingent cross-claim and related equitable arguments do not justify staying a long-outstanding, immediately payable judgment debt; the Body Corporate is not a secured creditor for insolvency purposes and its caveat was reasonably lodged and judicially sustained; exercise of s 38 discretion weighed against a halt given the litigation history and risk to creditors.
26 Apr 2012

AXA NEW ZEALAND NOMINEES LIMITED v NACHUM HC WN CIV-2011-485-2551

Citation

openlaw-f09f8ef1_7944_45e1_bbb5_6eaad6a5d7e5.pdf
Court

High Court

Because the creditor's security was over the judgment debtor's company and not over property owned by the debtor personally, the creditor was not a secured creditor for s14 purposes; the debtor was insolvent with an unavoidable shortfall and no s37 ground to refuse adjudication applied, therefore the Court must adjudicate the debtor bankrupt.
8 May 2009

MR & J LYNCH V CD MAIN HC PMN CIV 2008-454-285

Citation

openlaw-7d434629_1e0b_4fee_9b09_74bc41fd0f3e.pdf
Court

High Court

The charging order registered over the debtor's interest in the jointly owned property constituted a security such that the creditors were secured creditors; the only valuation evidence showed the debtor's half equity (~$39,688) exceeded the admitted balance debt ($31,652.50) so the debt did not exceed the value of the charge by $1,000 as required by s14, and accordingly the court was obliged to refuse adjudication and dismissed the application.
13 Nov 2006

OPOTIKI DISTRICT COUNCIL V BRYAN HC TAU CIV 2005-470-823

Citation

openlaw-abf610ba_5078_4149_b239_79ab2b72bc63.pdf
Court

High Court

The Court declined to make any costs order because the possible application of section 10(4) of the Legal Services Act created doubt as to its jurisdiction to award costs and, as a discretionary matter, it would be wrong to order costs against the debtor who had effectively accepted liability by making payment.

New Zealand Case Law

BODY CORPORATE 172108 v CUMMINS [2023] NZHC 1535

AXA NEW ZEALAND NOMINEES LIMITED v NACHUM HC WN CIV-2011-485-2551

MR & J LYNCH V CD MAIN HC PMN CIV 2008-454-285

OPOTIKI DISTRICT COUNCIL V BRYAN HC TAU CIV 2005-470-823