4 Jul 2016
MADSEN-RIES & ANOR (AS LIQUIDATORS OF TE PUA ROAD DEVELOPMENT LIMITED (IN LIQUIDATION) v DONOVAN DRAINAGE AND EARTHMOVING LIMITED [2016] NZCA 301
- Citation
- [2016] NZCA 301
- Court
- Court of Appeal
The Court dismissed the appeal, holding that even if the payments were insolvent transactions, Donovan Drainage established the s 296(3) defence: it acted in good faith and neither it nor a reasonable person in its position would have suspected Te Pua was or would become insolvent given the contemporaneous evidence (temporary cashflow explanation from the developer, industry practices, subsequent payments that cleared invoices, and that the earliest invoice may not have been due until 20 November 2008); insolvency must be assessed more broadly than mere liquidity and the objective/subjective…