Chesterfields Preschools Ltd (in liq) v Sisson

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2016-409-000040 [2017] NZHC 181

BETWEEN
CHESTERFIELDS PRESCHOOLS

LIMITED (IN LIQUIDATION) Plaintiff

AND

THERESE ANNE SISSON Defendant

THE COMMISSIONER OF INLAND REVENUE

Intervener

Hearing: 13-16 February 2017

Appearances:

B M Russell and K M Kendrick for Plaintiff
Defendant Appears In Person
S Kinsler, P J Shamy and L Russell for Intervener

Judgment:

16 February 2017

ORAL JUDGMENT OF GENDALL J

[1] Today, 16 February 2017, is the fourth day of the hearing of this and other proceedings between these parties. At approximately 10:45 a.m. this morning counsel for the plaintiff, Mr Russell counsel for the Intervener, Mr Shamy and the defendant Ms Sisson, completed and passed to the Court a consent memorandum which stated:

1.By consent the plaintiff, defendant and intervener in this proceeding, (CIV-2016-409-40) seek judgment in terms of the relief sought in the first cause of action in the plaintiff’s Second Amended Statement of Claim dated 8 August 2016.

2.The parties seek a timetable for the filing of submissions on the question of costs and allocation of a short fixture.

CHESTERFIELDS PRESCHOOLS LIMITED (IN LIQUIDATION) v SISSON [2017] NZHC 181 [16 February
2017]

[2] Having received this consent memorandum I then checked with counsel for the plaintiff, and counsel for the intervener, and Ms Sisson the defendant, that indeed a consent judgment in this proceeding in terms of the second amended statement of claim was sought by all parties. This was confirmed.

[3] By consent, therefore, I now enter judgment in favour of the plaintiff, Chesterfields Preschools Limited (In Liquidation) against the defendant, Therese Anne Sisson, in terms of the second amended statement of claim dated
8 August 2016 filed in this proceeding, and I make the following orders by consent:

(a) An order is made vesting the property at 854 Colombo Street, Christchurch in the plaintiff under s 52(1)(h) Trustee Act 1956.

(b)An order is made vesting the insurance proceeds described in the second amended statement of claim in the plaintiff and a direction is now made that the funds in ANZ Term Deposit Accounts:

(i) 088056229/1000; and

(ii) 088056229/1001

are to be transferred to an account to be stipulated by the liquidators of the plaintiff under s 59(1)(g) Trustee Act 1956.

(c) An order is now made vesting any and all residual entitlements under the insurance policies referred to in the second amended statement of claim into the plaintiff under s 59(1)(g) Trustee Act 1956.

(d)The freezing orders made by this Court on 16 March 2015 in Commissioner of Inland Revenue v Chesterfields Preschools Limited (HC) Christchurch CIV-2004-409-1043 are lifted to allow the vesting in orders [3](a), (b) and (c) noted above to occur, but otherwise are to remain in force at this point in respect of the proceeds of the sale of
67 Augusta Street, Christchurch, held by the Official Assignee.

(e) An order is made that caveat No. 10006337.1 placed on the title to the property at 854 Colombo Street, Christchurch, by the Registrar General of Land to enable the property to be transferred to the applicant is removed.

(f) Costs and disbursements are awarded with respect to this proceeding against the defendant Ms Sisson in favour of the plaintiff Chesterfields Preschools Limited (In Liquidation) and the Intervener the Commissioner of Inland Revenue. The amount of such costs and disbursements is to be determined by this Court subsequently as noted below.

[4] So far as costs on this proceeding are concerned, the parties have sought a timetable for the filing of submissions on the question of the quantum of these costs and the allocation of a short fixture to deal with this matter.

[5] That said, the following directions are now made concerning the costs question:

(a) By 24 February 2017 counsel for the plaintiff Chesterfields Preschools Limited (In Liquidation) and counsel for the Intervener the Commissioner of Inland Revenue are to file and serve submissions in support of their claim for costs here.

(b)By 10 March 2017 the defendant Therese Anne Sisson is to file and serve her submissions on this costs quantum question in reply.

(c) By 17 March 2017 the plaintiff Chesterfields Preschools Limited (In Liquidation) and the Intervener the Commissioner of Inland Revenue through counsel are to file and serve any brief reply submissions they may wish to put before the Court.

(d)The Registrar is then directed to liaise with all parties to set that quantum question down for hearing before me at the first available and suitable date, (one half day is allocated for this purpose).

(e) I also direct the Registrar to provide to counsel for all parties and

Ms Sisson a copy of the consent memorandum dated 16 February

2017 filed in this matter.

...................................................
Gendall J

Solicitors:
Lane Neave, Christchurch
Phillip Shamy, Christchurch
Meredith Connell, Christchurch

Copy to Ms Sisson

Chesterfields Preschools Limited (in liquidation) was the plaintiff in a legal dispute against Therese Anne Sisson, the defendant, with the Commissioner of Inland Revenue as an intervener. The case was heard in the High Court of New Zealand at Christchurch and was assigned the case number CIV-2016-409-000040. The primary dispute involved the vesting of certain assets, including property and insurance proceeds, into the plaintiff, as well as the removal of a caveat placed on a property title.

The legal issues that the court had to address included the validity of the consent judgment sought by all parties, the vesting of the specified assets into the plaintiff as per the second amended statement of claim, the lifting of certain freezing orders to facilitate these vesting orders, and the removal of a caveat from the property title. Additionally, the court had to determine the appropriate costs and disbursements to be awarded to the plaintiff and the intervener.

The court found that the consent judgment was valid as all parties had agreed to the terms of the second amended statement of claim. The court proceeded to vest the specified assets into the plaintiff, lifted the necessary freezing orders, and removed the caveat from the property title. The court also directed the parties to submit their claims for costs and disbursements within a specified timeframe, setting aside one half-day for a hearing on the quantum of these costs.

The final orders included vesting the property at 854 Colombo Street, Christchurch, the insurance proceeds, and residual entitlements under the insurance policies into the plaintiff. Freezing orders were lifted for these assets but remained in force for other assets. The caveat on the property title was removed, and costs and disbursements were to be determined in subsequent hearings.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

Hearing:	13-16 February 2017
Appearances:	B M Russell and K M Kendrick for Plaintiff Defendant Appears In Person S Kinsler, P J Shamy and L Russell for Intervener
Judgment:	16 February 2017