18 Feb 2014
PEPPER NEW ZEALAND (CUSTODIANS) LTD v DONOVAN TRUSTEE COMPANY NO. 1 LTD [2014] NZHC 180
- Citation
- [2014] NZHC 180
- Court
- High Court
Registration of the second mortgage created an indefeasible mortgagee interest in favour of Mr Bolton because knowledge of Phillip Donovan's lack of capacity and any impropriety by Michael could not be imputed to Bolton; however, on the facts no outstanding debt secured by that registered second mortgage was proved (the alleged $200,000 advance was paid to Michael alone in June 2009 and constituted a separate arrangement), therefore the surplus from the first mortgagee sale is payable to the Trusts as former registered proprietors; Pepper is entitled to have its reasonable solicitors' and own…