7 Apr 2016
WILLIAM ANDREW CLYDE COLTART V LEPIONKA & COMPANY INVESTMENTS LIMITED [2016] NZCA 102
- Citation
- [2012] 3 NZLR 36
- Court
- Court of Appeal
The Court of Appeal held the appellant had an arguable interest in the mortgagor's equity of redemption and therefore the Lepionka mortgagee owed him a duty to act in good faith and to obtain the best price reasonably obtainable; the mortgagee's conduct (acquiring the mortgage in distressed circumstances, adopting vendor contracts, assuming large contingent liabilities, cancelling the appellant's option and refusing market offers) gave rise to an arguable breach and indicated acting for collateral purposes; s 178(2) does not authorise a mortgagee to cancel a contract to which it is not a part…