29 Apr 2016
DAMIEN GRANT AND STEVEN KHOV AS LIQUIDATORS OF NZNET INTERNET SERVICES LIMITED (IN LIQUIDATION) V ROWAN KENLEY JOHNSTON [2016] NZCA 157
- Citation
- [2016] NZCA 157
- Court
- Court of Appeal
The appeal is dismissed. The Court held Johnston did not breach duties from appointment or mid‑2010 because he had undertaken reasonable due diligence, injected funds and took remedial steps; he did breach s137 (duty of care) from about 31 December 2010 (and Brown J's findings of later breaches were largely accepted) but the court declined to order compensation under s301 because causation and primary culpability lay with Andrews, Johnston's substantial advances offset deterioration, and fairness and proportionality did not support a contribution order.