New Zealand Case Law: Decisions & Judgments

Topic

Valuation of security

Legal area

Court

7 Feb 2014

SNEDDEN SOLICITORS NOMINEE CO LTD v FINLAY [2014] NZHC 87

Citation

[2014] NZHC 87
Court

High Court

Application dismissed because the asserted third-party claim did not have the requisite mutuality or realistic prospect of producing funds to meet the judgment debt; the sealed judgment attached to the bankruptcy notice complied with the High Court Rules as amended and was not defective or prejudicial to the debtor; and valuation evidence established the secured property's value did not exceed the debt by at least $1,000 so s14 did not bar adjudication.
17 Jun 2013

ASTERON TRUST SERVICES LIMITED v MORONEY [2013] NZHC 1460

Citation

[2013] NZHC 1460
Court

High Court

The Court found the jurisdictional requirements under ss 13 and 36 were satisfied, s 14 did not prevent adjudication because the securities were over third‑party company property not owned by the guarantor/debtor, evidence established that realisable securities would not satisfy the judgment debt, and no credible settlement existed; discretionary factors under s 37 therefore did not justify refusing adjudication, and the debtor was adjudicated bankrupt.
23 Sept 2009

BRIDGECORP LIMITED (IN RECEIVERSHIP) AND (IN LIQUIDATION) V NIELSEN HC AK CIV 2009-404-1060

Citation

openlaw-e2b4c95e_b6ed_40ae_89a7_59d66da74adf.pdf
Court

High Court

There was jurisdiction to adjudicate. Bridgecorp was not required to disclose a security over property not owned by the debtor; alternatively any omission was cured by s418. Evidence supported that a debt in excess of $1,000 would remain after enforcement of security and possible insurance recovery. No discretionary basis under s37 existed to refuse adjudication; accordingly the debtor was adjudged 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.

New Zealand Case Law

SNEDDEN SOLICITORS NOMINEE CO LTD v FINLAY [2014] NZHC 87

ASTERON TRUST SERVICES LIMITED v MORONEY [2013] NZHC 1460

BRIDGECORP LIMITED (IN RECEIVERSHIP) AND (IN LIQUIDATION) V NIELSEN HC AK CIV 2009-404-1060

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