31 Jul 2015
COMMISSIONER OF INLAND REVENUE v WATKINS [2015] NZHC 1780
- Citation
- [2015] NZHC 1780
- Court
- High Court
The court held that (1) the District Court default judgment fixed the debtor's liability for the causes of action pleaded and bars recovery of pre-judgment amounts that were within those causes of action but not claimed; (2) however statutory penalties and use-of-money interest under the Tax Administration Act continue to accrue after judgment and are recoverable, and the merger rule does not extinguish statutory post-judgment interest and penalties; (3) given the debtor's insolvency, repeated adjournments, lack of progress on the insurance claim and the real risk of massive further accrual o…