New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Repossession sales

Legal area

Court

19 Dec 2019

GEOFFREY BRIAN KENNY v MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT [2019] NZSC 150

Citation

[2019] NZSC 150
Court

Supreme Court

Leave to appeal was refused because the applicant's arguments did not have sufficient prospect of success; the Court of Appeal reasonably interpreted the Act to treat direct sales of repossessed vehicles by a finance company as captured by s 8(1)(b) where sales exceed six and are for 'gain', and the s 9 exemptions do not operate unless vehicles are sold through a registered trader; the definition of 'finance company' does not preclude a person from also carrying on motor vehicle trading under s 7(a).
6 Aug 2018

KENNY v MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT [2018] NZHC 1984

Citation

(2018) 15 TCLR114
Court

High Court

The court held that sales of repossessed vehicles by a finance company can constitute the business of motor vehicle trading depending on circumstances; s 9 protects finance companies only where they sell through a registered motor vehicle trader. Holding out under s 8(1)(a) requires representation to the public which was not established on these facts, but the plaintiff's volume and purpose of sales met s 8(1)(b): selling repossessed vehicles was undertaken for the primary purpose of commercial gain (including minimising losses). The declaratory relief sought was refused.