New Zealand Case Law: Decisions & Judgments

Topic

Valuation of assets

Legal area

Court

15 Nov 2012

FARRELL & ANOR V HOOKER HC AK CIV-2012-404-000739

Citation

openlaw-326ddfd5_ede3_4230_989b_131968692f3e.pdf
Court

High Court

The company was unable to pay its due debts by 16 December 2010; the sale was at an undervalue when measured against the value the company received; the defendant cannot avail himself of the s296(3) defence because he had reasonable grounds to suspect insolvency (he lent money to keep the company afloat and accepted the sale of essential plant and equipment and a lease to a different entity), therefore the liquidators are entitled to recover $34,000 plus interest and costs.
29 Aug 2012

LN & M J STANLEY V D P MCDONALD HC AK CIV-2011-404-005898

Citation

openlaw-2208eb15_0f44_4203_98fb_c0fdfc51b210.pdf
Court

High Court

Applicants succeeded on the substantive application; the respondents' grounds did not fall within r14.7 exceptions; the third respondent did not act in good faith and the transfer formed part of a scheme to hinder, delay or defeat the applicants; therefore costs are payable by the respondents jointly and severally.
30 Mar 2012

L N & M J STANLEY V D P MCDONALD HC AK CIV-2011-404-005898

Citation

openlaw-addfa087_4eda_4345_af29_c916626f3ef8.pdf
Court

High Court

The Court concluded the sale of 49 shares to the wife was a carefully contrived scheme made with intent to prejudice the applicants and was effected without reasonably equivalent value; the transferee did not act in good faith in the relevant insolvency sense and therefore s349 did not protect her, so s348 relief was available and vesting of the shares in the transferor was ordered under s350 to permit enforcement or bankruptcy administration.
14 Dec 2009

ESY V GRB HC CHCH CIV 2009-409-001080

Citation

openlaw-52721e92_3557_445a_8a35_4c3a430553ec.pdf
Court

High Court

The High Court allowed the appeal in part, setting aside the Family Court's valuation of the memorabilia at £32,768 because that valuation could not reliably be supported on the evidence and application of s2G was inappropriate given bankruptcy and administration by the Official Assignee; items (a),(b),(c) of the Family Court ruling relating to memorabilia were deleted, the respondent keeps half the net proceeds of the October 2004 auction, proceeds from any sales between that auction and the appellant's bankruptcy remain with the appellant, the remainder of the memorabilia is left to bankrup…
27 Aug 2009

THE COMMISSIONER OF INLAND REVENUE V MM JOHNSTON HC WANG CIV-2008-483-150

Citation

openlaw-18bea1dc_86da_4b06_af89_a26a3e913c0f.pdf
Court

High Court

The applicant failed to demonstrate that Mr Johnston's medical condition constituted a material fact not brought before the Court that would have affected the outcome; independent evidence (Official Assignee report and market valuations) established the applicant's insolvency and that adjudication was inevitable, therefore annulment under s.309(1)(a) was not warranted.

New Zealand Case Law

FARRELL & ANOR V HOOKER HC AK CIV-2012-404-000739

LN & M J STANLEY V D P MCDONALD HC AK CIV-2011-404-005898

L N & M J STANLEY V D P MCDONALD HC AK CIV-2011-404-005898

ESY V GRB HC CHCH CIV 2009-409-001080

THE COMMISSIONER OF INLAND REVENUE V MM JOHNSTON HC WANG CIV-2008-483-150