IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY
CIV-2013-409-1333 [2016] NZHC 2619
BETWEEN DEREK RICKY BLIGH
Plaintiff
AND
THE EARTHQUAKE COMMISSION First Defendant
AND
IAG NEW ZEALAND LIMITED Second Defendant
Hearing: 31 October 2016 Appearances:
A J D Ferguson and J S Morriss for Plaintiff
N S Wood and J W Upson for First Defendant
P M Smith and S J Connolly for Second DefendantJudgment:
2 November 2016
JUDGMENT OF CLARK J
[1] Mr Bligh sues the first and second defendants for earthquake damage to his home at 27-29 Waddington Road, Christchurch. The matter has been set down for trial since December 2015 when a seven-day fixture commencing Monday
31 October 2016 was allocated.
[2] In accordance with a pre-trial direction given by Davidson J on 10 October
2016 I met with all counsel at Mr Bligh’s home at 8:30am on 31 October 2016 for the purpose of a site visit. When I arrived counsel were engaged in settlement discussions.
[3] On returning to the court following the site visit I was advised that plaintiff’s counsel wished to address me in chambers concerning a recent development. The matter was called shortly before 11:30am and Mr Ferguson advised that the
plaintiff’s litigation funder had terminated his agreement with Mr Bligh on the basis
BLIGH v THE EARTHQUAKE COMMISSION [2016] NZHC 2619 [2 November 2016]
of Mr Bligh’s “non-cooperation”. Consequently Mr Bligh has no ability to pay his legal advisers and in the absence of any agreement about payment Mr Ferguson sought leave to withdraw.
[4] In response to my concern and queries about Mr Bligh, Mr Ferguson confirmed he had advised Mr Bligh:
(a) that he, Mr Ferguson, would be making an application to the Court for leave to withdraw;
(b) that Mr Bligh should be in attendance;
(c) that Mr Bligh had been advised of the consequences of the withdrawal of funding; and
(d)in response to Mr Bligh saying he wished to arrange legal aid, that it was unlikely he could do that in the time available before the hearing was due to commence and that Mr Bligh should come and speak to the Court about it but it appeared he had chosen not to do so.
[5] My further exchanges with Mr Ferguson were to satisfy myself that the application to withdraw was not attributable to a breakdown in the relationship which might be reparable.
[6] I viewed as inevitable the grant of Mr Ferguson’s application for leave to withdraw there being no basis upon which Mr Ferguson could be required to commit to completion of a seven-day trial1 spread over a fortnight.2 Before formally granting the application I heard from Mr Wood and Mr Smith, counsel for the first and second defendants.
[7] Counsel had only become aware of the withdrawal of funding and of
Mr Ferguson’s intended application to withdraw at 11:00am. In circumstances
1 Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, r 4.2.1.
2 Scheduling arrangements resulted in three days…
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- Case
- [2016] NZHC 2619
- Decision Date
CaseChat Overview and Summary
The court examined the plaintiff’s failure to attend court despite being advised to do so by his counsel. The plaintiff claimed he was misled by his counsel to stay at the property to meet an engineer, but the court accepted the counsel’s account that the plaintiff was specifically advised to attend court. The plaintiff's serious illness and the potential vulnerability of litigation funders to third-party costs awards were also discussed. The court found no basis for an adjournment and dismissed the proceeding, reserving costs for future determination.
The court made several orders, including granting Mr. Ferguson leave to withdraw, dismissing the proceeding, and reserving costs for later determination. The plaintiff was advised that he could apply to set aside the judgment if he could demonstrate grounds for a miscarriage of justice. The case highlighted the importance of disclosing the existence of a litigation funder and the identity of the "real parties" to the litigation.
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