Farmers' Mutual Finance Limited v Harris HC Palmerston North CIV 2010-454-519

[2010] NZHC 1660

IN THE HIGH COURT OF NEW ZEALAND PALMERSTON NORTH REGISTRY

CIV 2010-454-519

BETWEEN  FARMERS' MUTUAL FINANCE LIMITED

Plaintiff

ANDKEVIN JOHN HARRIS First Defendant

ANDMARGARET LINDA HARRIS Second Defendant

ANDWOODEND BEACH INVESTMENTS LIMITED

Third Defendant

ANDNORTHERN BLACKCURRANTS LIMITED

Fourth Defendant

Hearing:         13 September 2010

Counsel:         D Bleier for Plaintiff

No Appearance for Defendants

Judgment:      13 September 2010

JUDGMENT OF RONALD YOUNG J

[1]      This  is  an  application  for  summary  judgment  against  each  of  the  four defendants arising from a series of loans and guarantees.  All defendants have been served with the proceedings.

[2]      The first loan made to the third defendant is currently outstanding as to principal   and   interest   including   default   interest   to   13 September 2010   of

$555,942.75.

FARMERS' MUTUAL FINANCE LIMITED V KEVIN JOHN HARRIS AND ORS HC PMN CIV 2010-454-

519  13 September 2010

[3]      The second loan to the fourth defendant currently has outstanding capital and interest including default interest as at 13 September 2010 of $360,357.04.

[4]      The first and second defendants have guaranteed the liability of the Woodend loan up to $1,500,000 and the liability with respect to the Northern loan up to

$1,000,000.    Northern  has  guaranteed  the  Woodend  loan  up  to  $1,500,000  and

Woodend has guaranteed the Northern loan up to $1,000,000.

[5]      As can be seen the amount outstanding is less than any of the guarantees. Both loans are in default.   Demand has been made for the principal sum together with interest without payment by any of the defendants.  Further demands have been made under the guarantees also without payment.

[6]      I am satisfied, therefore, that there should be joint and several judgment against all four defendants in the sum of $916,299.79.

[7]      As to costs and disbursements.   In terms of the guarantees the plaintiff is entitled to actual costs against the defendant on a solicitor/client basis.  I am satisfied that the total costs and disbursements sought of $17,952.02 are reasonable in the circumstances.

[8]      Accordingly there should be judgment jointly and severally with respect to each  of  the  four  defendants  in  the  sum  of  $934,251.81  including  costs  and

disbursements.

Solicitors:

Ronald Young J

D Bleier, DLA Phillips Fox, PO Box 2791, Wellington 6011, email:  davi[email protected]