Body Corporate 073471 v Dynasty Hotel Investments Limited

Case [2013] NZHC 1127


IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2012-409-2724 [2013] NZHC 1127

UNDER  Unit Titles Act 2010

BETWEEN  BODY CORPORATE 073471

Applicant

ANDDYNASTY HOTEL INVESTMENTS LIMITED AND OTHERS Respondents

Hearing:         16 May 2013 (On papers) Counsel:      D Nicholson for Applicant Judgment:     17 May 2013

JUDGMENT OF MILLER J

[1]    This application to settle a scheme under s 74 of the Unit Titles Act 2010 concerns the Heritage Hotel tower and car park building at 24 Cathedral Square, Christchurch.

[2]    The scheme was unanimously approved at an extraordinary general meeting of the applicant body corporate, and the originating application has met with no opposition.  Accordingly, the application has been decided on the papers, as Fogarty J  suggested in Dominion Finance Group Ltd (in receivership and liquidation) and others v Body Corporate 382902 and others.[1]

[1] Dominion Finance Group Ltd (in receivership and liquidation) and others v Body Corporate

382902 and others [2012] NZHC 3325 at [141].

[3]    There are 80 respondents, whose names are listed on the notice of originating application.   They comprise owners of units in the tower and car park, and other

interested parties.

BODY CORPORATE 073471 v DYNASTY HOTEL INVESTMENTS LTD & OTHERS HC CHCH CIV-2012-

409-2724 [17 May 2013]

[4]    The tower and car park were damaged by earthquake.   Both were insured. They are separate buildings, and it is possible to deal with them separately.  The car park is to be repaired, so owners of units in it will be made whole, but the tower will be demolished and the land under it sold.  The body corporate will use the proceeds of insurance on the tower not for reinstatement but for other purposes set out in the scheme.

[5]    The scheme has been amended pursuant to provisions contained in it.  The amended scheme, for which approval is now sought, is marked B to a third affidavit of George Horsburgh.  To the extent that leave is necessary to amend the application accordingly, leave is granted.

[6]    Three unit owners have died since the application was filed.  The Court does not require that any further steps be taken as to service, and one deceased unit holder, Andrew Bruce Henderson, is now removed as a respondent.

[7]    With these amendments, there will be orders in terms of paragraph 1 of the notice of originating application dated 7 December 2012.

Miller J

Solicitors:

Duncan Cotterill, Auckland for Applicant


Details
AGLC
Body Corporate 073471 v Dynasty Hotel Investments Limited [2013] NZHC 1127
Case
[2013] NZHC 1127
Decision Date

CaseChat Overview and Summary

The High Court of New Zealand considered an application to settle a scheme under the Unit Titles Act 2010 concerning the Heritage Hotel tower and car park at 24 Cathedral Square, Christchurch. The applicant, Body Corporate 073471, sought approval for a scheme to manage the aftermath of the earthquake damage to the buildings, which were separately insured. The car park is to be repaired, while the tower will be demolished and the land sold. The proceeds from the insurance on the tower will be used for purposes other than reinstatement.

The legal issues involved the approval of the amended scheme, which had been unanimously supported by the body corporate, and the handling of the deaths of three unit owners since the initial application. The court needed to decide whether the amendments to the scheme were appropriate and whether any further steps were required for the deceased unit holders.

The court granted the necessary leave to amend the application, removed one deceased unit holder from the respondents, and approved the amended scheme. The court found that no further steps were necessary regarding the deceased unit holders, and the application was decided on the papers. The final orders will be made in accordance with the notice of originating application dated 7 December 2012.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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