| IN THE COURT OF APPEAL OF NEW ZEALAND I TE KŌTI PĪRA O AOTEAROA |
| CA443/2018 [2018] NZCA 605 |
| BETWEEN | FAIRWAY HOLDINGS LIMITED AND QUEST PROJECTS LIMITED |
| AND | CHRISTOPHER CAREY MCCULLAGH AND STEPHEN MARK LAWRENCE IN THEIR CAPACITIES AS LIQUIDATORS OF HAMILTON STREET INVESTMENTS LIMITED (IN LIQUIDATION) |
| Court: | Brown and Clifford JJ |
Counsel: | G Brittain QC for Applicants |
Judgment: | 18 December 2018 at 4.00 pm |
JUDGMENT OF THE COURT
AThe application for leave to appeal under s 56(5) of the Senior Courts Act 2016 is granted.
BThe respondents must pay the applicants costs for a standard application for leave to appeal on a band A basis together with usual disbursements.
____________________________________________________________________
REASONS OF THE COURT
(Given by Brown J)
Introduction
This application is for leave under s 56(5) of the Senior Courts Act 2016 (the Act) to appeal from a judgment of the High Court made on an interlocutory application.
The following three proceedings in the Tauranga Registry of the High Court are relevant to the present matter:
(a)An application by the liquidators of Hamilton Street Investments Ltd (Hamilton) against Fairway Holdings Ltd (Fairway) and Quest Projects Ltd (Quest) who were shareholders of Hamilton to set aside insolvent transactions (the voidable proceeding).[1]
(b)A proceeding by Hamilton and its liquidators against Fairway, Quest and Hamilton’s directors (Mr Peter Cooney and Mr Robert Turner) seeking to recover distributions under s 56 of the Companies Act 1993 (the dividend proceeding).[2]
(c)A proceeding by the body corporate and unit owners of the Cayman Apartments in Mount Maunganui, a building developed by Hamilton, against 21 entities alleging negligence and estoppel in relation to 50 pleaded defects in construction and design (the defective building proceeding).[3]
[1]CIV 2018-470-26.
[2]CIV 2018-470-33. This proceeding and CIV-2018-470-26 are together referred to as the Companies Act proceedings.
[3]CIV 2016-470-138.
Fairway and Quest made an application under r 10.12 of the High Court Rules 2016 for an order for consolidation of the three proceedings. That application was declined in a judgment of Associate Judge Andrew dated 17 May 2018 (Consolidation decision).[4]
[4]McCullagh v Fairway Holdings Ltd [2018] NZHC 1084 [Consolidation decision].
Fairway and Quest applied under s 56(3) of the Act for leave to appeal against that judgment. Their application was dismissed by Associate Judge Andrew in a judgment dated 27 July 2018 (Leave decision).[5] Fairway and Quest now seek the leave of this Court to appeal under s 56(5) of the Act.
Material facts
[5]McCullagh v Fairway Holdings Ltd [2018] NZHC 1883 [Leave decision].
The background to the application for consolidation is succinctly explained in the Consolidation decision as follows:
[10] Defects in the Cayman Apartments became apparent in 2008, shortly after the building was completed. Ongoing issues were then raised at Body Corporate meetings and with Hamilton and CBC.
[11] CBC, the builder, ceased to trade in 2010, changed its name to XMP & D Ltd in 2012 and was put into liquidation in 2014.…
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- Case
- [2018] NZCA 605
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