Batty v Reeves - [2015] NZHC 908

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV 2014-404-3223 [2015] NZHC 908

BETWEEN
WILLIAM ANTONY BATTY, AS

TRUSTEE IN BANKRUPTCY OF CHRISTINE NITA REEVES Plaintiff

AND

CHRISTINE NITA REEVES Defendant

Hearing: 4 May 2015

Counsel:

L J McNeely for Mr Batty
No appearance by or on behalf of Ms Reeves

Judgment:

4 May 2014

(ORAL) JUDGMENT OF HEATH J

Solicitors:
Bell Gully, Auckland

BATTY v REEVES [2015] NZHC 908 [4 May 2014]

Introduction

[1] On 21 May 2013, Ms Blake filed a creditor’s petition in bankruptcy against Ms Reeves in the High Court of Justice of England and Wales (the English Court). The debt claimed, £84,078.68 (including interest), arose out of orders for costs made on 15 October 2010, in civil proceedings brought against Ms Reeves in the Wandsworth County Court. A statutory demand had been made for payment of the debt but no response had been received. Ms Reeves was adjudged bankrupt on 14
August 2013 by the English Court.

[2] Mr Batty is a licensed insolvency practitioner in London. On 21 August

2013, he was appointed as Trustee in Bankruptcy of Ms Reeves’ bankrupt estate. While he has been unable to locate Ms Reeves, he has established that she sold her residence in Lower Richmond Road, London, on or about 24 September 2010. Neither the proceeds of sale of that property nor any other assets have been located within the United Kingdom that can be realised for the benefit of her creditors.

[3] Mr Batty’s inquiries have uncovered a bank account in New Zealand, at ANZ Bank (the Bank) in Howick. It is reliably believed that the proceeds of sale of the London property were transferred into that bank account. The net amount of the proceeds of sale of that property is believed to be £467,932.78. However, the current balance of that account is only $397.14.

The application

[4] Mr Batty applies to this Court for an order recognising the bankruptcy commenced in England and an order enabling him to gain access to the transaction history of the bank account, on payment of the Bank’s reasonable costs. As there is compelling evidence that Ms Reeves cannot be located, the application has proceeded without notice to her. The other affected party, the Bank, has been served and abides the decision of the Court.

Jurisdiction

[5] Initially, Mr Batty sought the issue of a Letter of Request for assistance from the English Court. An order to that effect was made by Chief Bankruptcy Registrar Baister, on 8 July 2014. The order stated:1

This Court hereby requests the High Court of New Zealand to assist this
Court by ordering that:

(1) The Bankruptcy Order and appointment and office of the Trustee in
Bankruptcy be recognised by the High Court of New Zealand.

(2) The National Bank of New Zealand be required to provide the transaction history of the Account to the Trustee in Bankruptcy on payment of its reasonable costs.

(3) There be such further or other relief…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Batty v Reeves

Details

AGLC: Batty v Reeves [2015] NZHC 908
Case: [2015] NZHC 908
Decision Date: 4 May 2014

CaseChat Overview and Summary

The High Court of New Zealand was asked to assist the High Court of England and Wales in a bankruptcy matter involving Ms Christine Nita Reeves. Mr William Antony Batty, the Trustee in Bankruptcy of Ms Reeves' estate, sought recognition of the bankruptcy and access to a bank account in New Zealand that contained the proceeds of a property sold by Ms Reeves in London. The application proceeded without notice to Ms Reeves, who was unable to be located, and the bank abided the court's decision. The court had to determine whether it had the jurisdiction to act on the English court's request for assistance and whether it should exercise its discretion to assist in the manner sought.

The court found that it did not have jurisdiction under Schedule 1 of the Insolvency (Cross-border) Act 2006 because Ms Reeves did not have her "centre of main interests" or an "establishment" in England. However, it could consider whether to exercise its discretion under section 8 of the Act, which allows the court to act in aid of overseas courts if it thinks fit. The court held that it could grant relief on "universalist" principles when a statute expressly permits that course, and it could compel the bank to produce the transaction history of the account. The court reserved the question of costs.

The court ordered that the High Court of New Zealand shall act in aid of and be auxiliary to the English court's request for assistance, recognise the appointment of Mr Batty as Trustee in Bankruptcy of Ms Reeves' property, and allow Mr Batty to exercise the powers of the Official Assignee to obtain the transaction history of the bank account. The court also reserved leave for Mr Batty to apply for further relief if assets in New Zealand are located that he requires the court's assistance to realise or if examination powers are required to obtain further information to identify any asset for realisation. The court reserved all questions of costs.

Orders