Body Corporate 201181

[2025] NZHC 268

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2025-404-392

[2025] NZHC 268

IN THE MATTER

of an application for a vesting order in respect of land pursuant to s 119 of the Insolvency Act 2006

BETWEEN

BODY CORPORATE 201181

Plaintiff

Hearing:	On the papers
Counsel:	E Tobeck for the Plaintiff
Judgment:	24 February 2025

JUDGMENT OF GORDON J

This judgment was delivered by me on Monday, 24 February 2025 at 3.30 pm pursuant to r 11.5 of the High Court Rules 2016.

Registrar/Deputy Registrar

Solicitors:

Morgan Coakle, (E Tobeck), Auckland

RE BODY CORPORATE 201181 [2025] NZHC 268 [24 February 2025]

[1]    Body Corporate 201181 (Body Corporate) has made a without notice application dated 19 February 2025 for directions as to service seeking orders that documents need not be served on:

(a)Mark Thomas Curran and Kelsey Lee Sciascia; and

(b)The Crown.

[2]    The application is supported by an affidavit of Anthony Bahm, Chairman of the Body Corporate, sworn 18 February 2025, and a memorandum of counsel for the Body Corporate, Ms Tobeck, dated 19 February 2025.

[3]    Counsel also asks, if the Court is minded to dispense with service as sought, to grant an order vesting the property concerned in the Body Corporate pursuant to s 119 of the Insolvency Act 2006 (the Act).

[4]    I am satisfied both orders should be made for the following reasons, which are drawn from the affidavit of Mr Bahm.

[5]    Mr Curran and Ms Sciascia are the registered proprietors of Unit B2(14), 80– 84 The Strand, Parnell, Auckland and are liable to pay levies for the management of the unit title.

[6]    Mr Curran and Ms Sciascia were unable to pay the levies and the Body Corporate obtained judgment against them on 1 December 2022 in the amount of

$64,130.80.

[7]    Mr Curran and Ms Sciascia were unable to pay the judgment amount and they were adjudicated bankrupt on 21 June 2023 on the application of the Body Corporate.

[8]    Subsequently, the Official Assignee (OA) investigated the affairs of Mr Curran and Ms Sciascia and on 2 December 2024 disclaimed the property under s 117 of the Act. The effect of that disclaimer was to bring to an end the rights, interests and liabilities of Mr Curran and Ms Sciascia and the OA.

[9]The further effect of the disclaimer is that the unit has vested in the Crown.1

[10]   Mr Bahm says the levies raised by the Body Corporate have continued to accrue against Unit B2(14). As of 18 February 2025, the outstanding levies raised against that unit total $141,496.72. As Mr Bahm notes the levies raised under the Unit Titles Act 2010 are payable by the owners of the unit in proportion to each of owner’s utility interest.

[11]   Mr Curran and Ms Sciasica no longer have any interest in Unit B2(14) by virtue of the disclaimer by the Official Assignee. Mr Bahm says there is no prospect of clearing and keeping the levies up to date in respect of that unit unless the Body Corporate is able to sell the unit to a new owner in order to bring in funds to pay the levies.

[12]   Mr Bahm says a copy of the Body Corporate’s draft statement of claim seeking a vesting order as earlier referred to, has been sent to Treasury. Treasury has advised it has no objection to the vesting order that the Body Corporate seeks.

[13]   The Body Corporate’s lawyer has similarly contacted both Mr Curran and  Ms Sciasica by text and email respectively asking each of them to confirm they have no objection to the vesting order. Each of them replied saying they had no objection.

[14]   Mr Bahm, finally, notes that there is no mortgage registered over Unit B2(14). If it is vested in the Body Corporate, the Body Corporate will sell the unit to the highest bidder and apply any funds received against the levies owed. The new owner will then be liable to pay the levies going forward.

[15]I make the following orders:

(a)The documents in this proceeding need not be served on Mark Thomas Curran, Kelsey Lee Sciasica and the Crown; and

1      Re Body Corporate 201036 [2016] NZHC 2035, at [7] – [21].

(b)An order that Unit B2(14) comprised and described in NA129D/725 (North Auckland Registry) at 80–84, The Strand, Parnell, Auckland, is vested in Body Corporate 201181 pursuant to s 119 of the Insolvency Act 2006.

Gordon J