New Zealand Case Law: Decisions & Judgments

Topic

General security agreement

Legal area

Court

1 Sept 2023

GROW BUILD NZ LTD (in liq) v TIMBER CABINS GROUP LTD [2023] NZHC 2447

Citation

[2023] NZHC 2447
Court

High Court

Because the plaintiff is insolvent the r 5.45 threshold is met but the plaintiff's contractual claim is reasonably arguable and there is credible evidence that the defendant's conduct contributed to the plaintiff's impecuniosity; balancing access to justice and defendant's protection required staged security rather than full amount sought. The judge ordered staged security ($5,000 by 29 Sept 2023; $10,000 by close of pleadings; $20,000 within 15 working days after service of defendant's evidence) and stayed proceedings until payment at each stage, reserving leave to vary the stay and directin…
18 Jul 2023

BUILDING BRILLIANT NZ LIMITED v STAR FIELD HOLDINGS LIMITED [2023] NZHC 1857

Citation

[2023] NZHC 1857
Court

High Court

The applicant's conduct in continuing the application after settlement discussions was not sufficiently vexatious, unnecessary or unreasonable to justify indemnity costs or any costs; the settlement was effectively in place by part‑performance but clause 128 did not apply to entitle indemnity costs; therefore costs are ordered to lie where they fall and no declaration that $143,228.50 is a liquidated sum is appropriate in these proceedings.
16 Sept 2022

CSR POKENO LTD v YES INVESTMENT NZ LTD [2022] NZHC 2378

Citation

[2022] NZHC 2378
Court

High Court

Although CSR raised serious questions for trial about the call option's construction and potential penalty or CCCFA relief, the balance of convenience favoured YINZ: damages were adequate, an injunction would rewrite the parties' bargain and cause irremediable prejudice to YINZ who provided majority capital; accordingly interim injunction was declined and consent interim orders discharged.
7 May 2021

THOMAS and THOMAS v HARNISH [2021] NZHC 1007

Citation

[2021] NZHC 1007
Court

High Court

The Court found the company defaulted by failing to pay the November 2016 instalment, the plaintiffs validly accelerated the loan and validly appointed receivers under the general security agreement and applicable law, and the receivers acted as agents of the company so the plaintiffs are not liable for the receivers' conduct; summary judgment on liability for the plaintiffs was granted and the matter was adjourned for proof of quantum.
1 Mar 2021

ALPINE SOUTH FISHING LTD (IN LIQUIDATION) v KIM [2021] NZHC 319

Citation

[2021] NZHC 319
Court

High Court

The Court found the plaintiff's prospects of success to be low on an interlocutory impression, the plaintiff is impecunious and has had prior opportunity to provide security; a fair and proportionate quantum of security for costs is $35,000 to protect the defendant without being oppressive. The proceeding is stayed until that sum is paid; if not paid within three months defendant may apply to strike out. Indemnity costs sought were refused because it was unlikely the loan agreement's costs clauses would be read to cover defending these substantive causes of action at trial.
6 May 2020

LIAO v ZHENG [2020] NZHC 920

Citation

[2020] NZHC 920
Court

High Court

Summary judgment was dismissed because there are genuine, material disputes of fact and credibility central to allegations of fraud, misrepresentation and non est factum that cannot be resolved on affidavit; the plaintiff did not establish the defendant had no defence and the matters must be tested at trial.
26 Nov 2019

McCOLLUM v THOMPSON [2019] NZHC 3090

Citation

[2019] NZHC 3090
Court

High Court

Defendants' claim for special damages for lost milk and progeny income was dismissed because at the time of conversion they had effectively ceased to trade and lacked realistic ability to use the animals (no milking facilities, lease dispute and barred access, no alternative property, herd uneconomic), the evidence quantifying future profits was unreliable, and the proper measure of loss was the capital value already credited.
4 Oct 2019

EASTLIGHT ASSET TRADING NO. 5 LIMITED v GROUND SUPPORT (WGTN NO. 1) LIMITED[2019] NZHC 2534

Citation

[2019] NZHC 2534
Court

High Court

The general security agreement unambiguously charged all of Ribble's present and future property including the two properties; appointment of a receiver under that GSA vested the receiver with authority to deal with those properties; consequently the company's director lacked authority to enter into the purported sale to Eastlight and Eastlight acquired no equitable interest to support its caveat, so the caveat must lapse.
13 Aug 2019

JOLLANDS v MAD BUTCHER HOLDINGS LIMITED [2019] NZHC 1964

Citation

[2019] NZHC 1964
Court

High Court

The mandatory injunction sought was refused because the balance of convenience did not support compelling Mad Butcher to execute the Deed Poll release pending resolution of disputed legal issues, the proposed order risked finally disposing of the proceeding, and damages appeared an adequate remedy; instead the court continued the earlier interim interim injunction restraining Mad Butcher from acting on its s120 PPSA notice and made case management/timetabling orders.
12 Jun 2019

ARROW INTERNATIONAL (NZ) LTD v NZ PROJECT 29 LTD [2019] NZHC 1326

Citation

[2019] NZHC 1326
Court

High Court

The contractual scheme (cl 14.2.7 and the Construction Bond) allocated the risk and provided for provisional engineer certification and draw on the Bond to protect the principal's cashflow; the court will not grant an interim injunction that cuts across expressly agreed contractual machinery unless the certificate is invalid as a matter of the contract. The engineer's provisional certificate, notwithstanding arguable procedural shortcomings, fell within the contractual framework and did not justify continuation of the interim injunction; accordingly the injunction was discharged.