Body Corporate 63891 v Corsair Products Limited

[2018] NZHC 1844

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

I TE KŌTI MATUA O AOTEAROA TE WHANGANUI-A-TARA ROHE

CIV-2018-485-145

[2018] NZHC 1844

UNDER

the Companies Act 1993 (the Act)

IN THE MATTER OF

an application to liquidate Corsair Products Limited pursuant to s 241(4)(a) of the Act

BETWEEN

BODY CORPORATE 63891

Plaintiff

AND

CORSAIR PRODUCTS LIMITED

Defendant

Appearances:	M W G Riordan for plaintiff M W Anderson for defendant
Judgment:	24 July 2018

COSTS JUDGMENT OF ASSOCIATE JUDGE JOHNSTON

[On the papers]

[1]In my judgment dated 10 July 2018 I dismissed Body Corporate 63891’s proceeding for an order winding up Corsair Products Ltd. The essential basis for this was that Corsair had paid the core component of the debt and provided security for the costs component which was in issue between the parties. That is exactly what the statutory demand served by BC 63891 on Corsair on     13 December 2017 required of it.

[2]BC 63891’s statutory demand was ignored by Corsair. As a result, BC 63891 was obliged to issue this proceeding. When, after its commencement, Corsair engaged with BC 63891, it put forward a series of offers commencing on     9 March 2018 proposing terms for settlement which were less attractive than the ultimate outcome and unacceptable to BC 63891.

BODY CORPORATE 63891 v CORSAIR PRODUCTS LIMITED [2018] NZHC 1844 [24 July 2018]

[3]                 Accordingly, BC 63891 continued to prosecute its proceeding as it was entitled to do.

[4]                 The reality is that Corsair did not comply with the terms of BC 63891’s statutory demand until immediately prior to the hearing before me.

[5]                 At that point, BC 63891 could have accepted that it had achieved all that it reasonably expect to achieve in winding up proceedings. It did not. It proceeded. Ultimately, it achieved nothing more than it had been offered.

[6]                 Against that background, my view is that substantial justice will be done if I allow BC 63891 its costs up to the hearing, but not the costs of the hearing itself or anything after that.

[7]BC 63891 shall have costs totalling $7,805.00 together with disbursements of

$1,522.56, an all inclusive figure of $9,327.00.

Associate Judge Johnston

Solicitors:

Morrison Mallet, Auckland for the plaintiff

Thomas Dewar Sziranyi Letts, Lower Hutt for the defendant