New Zealand Case Law: Decisions & Judgments

Topic

Creditor remedies

Legal area

Court

11 Nov 2021

WENZHOU HONGLIANG TRADING CO LTD v MSUT TRUSTEE LTD [2021] NZHC 3052

Citation

[2021] NZHC 3052
Court

High Court

The Court found that Mr Williams, while insolvent, diverted proceeds of sale of his beneficial interest in the Drury Heights development to the GN Williams Family Trust and to MSM Holdings with the intent to diminish his estate and increase others', thereby prejudicing creditors; accordingly s 348 jurisdiction existed and compensation orders were made requiring MSM Holdings to pay NZD 375,425 and MSUT Trustee and MSM Holdings jointly and severally to pay NZD 124,575 and NZD 75,000 to the Official Assignee, plus costs awarded to the plaintiff.
12 Nov 2014

MORRISON v GK ACCOUNTING (ALBANY) LIMITED [2014] NZHC 2813

Citation

[2014] NZHC 2813
Court

High Court

The Court appointed interim liquidators because plaintiffs established a prima facie case for liquidation and demonstrated that the company was insolvent with specific deficits and tax arrears, there was credible evidence of asset diversion and doubtful related‑party transactions creating a real risk of dissipation, and it was expedient under s 246 and r 31.23 to appoint interim liquidators to preserve assets and protect creditors pending the substantive liquidation application.
5 Oct 2012

BANK OF NEW ZEALAND V SHUKLA HC AK CIV-2012-404-2219

Citation

openlaw-c3230b14_544d_4005_9a6d_1a5d8215515e.pdf
Court

High Court

The written guarantee, including its incorporated schedule, unambiguously extended to future indebtedness; the bank's requirement to reduce the overdraft and ultimate demand for repayment were commercially justified by the company's deteriorating finances and did not amount to bad faith or conduct discharging the guarantor; promissory estoppel did not bar enforcement because the bank retained and validly exercised its contractual rights and had given notice and opportunity to remedy; accordingly there was no arguable defence and summary judgment was ordered for the bank.
11 Aug 2009

STRAND CORPORATION LIMITED V HAMMANT AND ORS AND ORS HC AK CIV-2008-404-7712

Citation

openlaw-592e046c_74a0_4475_ac0e_2fb330c03286.pdf
Court

High Court

The application was dismissed because the evidence was inadequate to satisfy Rule 17.41: there was no evidence the fourth defendant sold property to defeat creditors and no evidence she was about to leave New Zealand, and such scant evidence did not justify an order that would substantially impede her freedom to deal with property.
9 Jul 2009

RICHARDS V AUCKLAND FINANCE LIMITED HC AK CIV 2008-404-002324

Citation

openlaw-a22e27a9_e872_4ef9_8dbe_6d8afe0387ac.pdf
Court

High Court

AFL satisfied the statutory requirements and Mr Richards failed to show that it would be just and equitable to refuse adjudication: he voluntarily assumed and extended commercial risks, committed trust assets that foreclosed ability to meet earlier guarantee obligations, and the public interest in enforcement of guarantees and commercial morality weighed in favour of adjudication.
4 Mar 2008

STRATEGIC OPTIONS LIMITED V SWORDFISH LODGE MANAGEMENT LIMITED HC AK CIV 2008-404-1017

Citation

openlaw-90cc8779_6918_4c25_9edc_3754a74a9346.pdf
Court

High Court

The applicant established that the respondent may be insolvent by virtue of undisputed non‑payment of rent and demands; the Court inferred that appointment of administrators would likely secure ongoing income, equitably distribute receipts, permit investigation and possible restructuring and therefore was likely to produce a better return for creditors than immediate liquidation, justifying appointment under s239L(2)(a).

New Zealand Case Law

WENZHOU HONGLIANG TRADING CO LTD v MSUT TRUSTEE LTD [2021] NZHC 3052

MORRISON v GK ACCOUNTING (ALBANY) LIMITED [2014] NZHC 2813

BANK OF NEW ZEALAND V SHUKLA HC AK CIV-2012-404-2219

STRAND CORPORATION LIMITED V HAMMANT AND ORS AND ORS HC AK CIV-2008-404-7712

RICHARDS V AUCKLAND FINANCE LIMITED HC AK CIV 2008-404-002324

STRATEGIC OPTIONS LIMITED V SWORDFISH LODGE MANAGEMENT LIMITED HC AK CIV 2008-404-1017