FAF Holdings Limited (in liquidation) v Madsen-Ries

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2015-412-080

[2018] NZHC 2067

UNDER the Companies Act 1993

IN THE MATTER

of the liquidation of FAF Holdings Limited (In Liquidation)

BETWEEN

FAF HOLDINGS LIMITED (IN LIQUIDATION)

First Plaintiff

VIVIEN JUDITH MADSEN-RIES and

HENRY DAVID LEVIN as liquidators of FAF HOLDINGS LIMITED (IN

LIQUIDATION)
Second Plaintiffs

AND

RICHARD JOHN BETHUNE

Defendant

Hearing: On the papers

Appearances:

K H Morrison and J O’Connell for the Plaintiffs P R Cogswell for the Defendant

Judgment:

14 August 2018

JUDGMENT OF WOODHOUSE J

(Costs)

This judgment was delivered by me on 14 August 2018 at 3:30 p.m. pursuant to r 11.5 of the High Court Rules 1985.

Registrar/Deputy Registrar

……………………………………

Solicitors:
Ms K H Morrison, Meredith Connell, Solicitors, Auckland Mr P R Cogswell, Cogswell Law, Auckland

FAF HOLDINGS LTD (IN LIQ) v BETHUNE [2018] NZHC 2067 [14 August 2018]

[1] This is a judgment for costs in favour of the plaintiffs following the substantive judgment.1

[2] The plaintiffs filed a memorandum in accordance with the directions in the substantive judgment seeking costs of $61,771 on a 2B basis together with disbursements of $1,007.83.

[3] There was no memorandum in response for the defendant. Following further enquiries by the case officer Mr Cogswell, for the defendant, advised that he had no instructions to respond to the plaintiffs’ costs memorandum.2

[4] I am satisfied that the quantum sought by the plaintiffs is in accordance with the relevant schedules to the rules and the disbursements sought are reasonable.

[5] Accordingly, there is an order that the defendant pay costs and disbursements to the plaintiffs in a total sum of $62,778.83.

Woodhouse J

1 FAF Holdings Ltd (in liq) v Bethune [2017] NZHC 2796 at [186].
2 Inadvertently, the plaintiffs’ memorandum and Mr Cogswell’s advice were not referred to me until 30 April 2018.

CaseChat Overview and Summary

In the High Court of New Zealand, the case of FAF Holdings Limited (in liquidation) v Madsen-Ries was decided. The plaintiffs, FAF Holdings Limited, were in liquidation and were represented by their liquidators. The defendant was Richard John Bethune. The primary dispute was regarding the costs associated with the litigation, which followed a substantive judgment in favour of the plaintiffs. The plaintiffs sought costs and disbursements totalling $62,778.83, which were approved by the court.

The legal issues that the court had to determine involved the appropriate quantum of costs and whether the disbursements claimed were reasonable. The plaintiffs submitted a memorandum detailing their costs, which included legal fees and disbursements, while the defendant did not respond to the plaintiffs’ memorandum. The court had to consider whether the costs claimed were in line with the relevant schedules and whether the disbursements were reasonable.

The court found that the quantum of costs sought by the plaintiffs was consistent with the relevant schedules and that the disbursements claimed were reasonable. The court noted that the defendant's solicitor had informed the court that there were no instructions to respond to the plaintiffs' costs memorandum. Therefore, the court approved the plaintiffs' claim for costs and disbursements, ordering the defendant to pay the total amount of $62,778.83 to the plaintiffs.

The court made an order that the defendant pay the plaintiffs' costs and disbursements, totalling $62,778.83, as sought in the plaintiffs' memorandum. The court did not find any issues with the reasonableness of the costs claimed, and the defendant did not contest the amount. This judgment finalised the financial aspects of the litigation, ensuring that the plaintiffs were compensated for the costs incurred in pursuing their claims.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

UNDER	the Companies Act 1993
IN THE MATTER	of the liquidation of FAF Holdings Limited (In Liquidation)
BETWEEN	FAF HOLDINGS LIMITED (IN LIQUIDATION) First Plaintiff VIVIEN JUDITH MADSEN-RIES and HENRY DAVID LEVIN as liquidators of FAF HOLDINGS LIMITED (IN LIQUIDATION) Second Plaintiffs
AND	RICHARD JOHN BETHUNE Defendant

Hearing:	On the papers
Appearances:	K H Morrison and J O’Connell for the Plaintiffs P R Cogswell for the Defendant
Judgment:	14 August 2018