IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE
CIV-2018-404-2733
[2023] NZHC 3825
BETWEEN YANLANG FENG AND CHENGPIN CAI
Plaintiffs
AND
SEA.TX PROPERTY LIMITED
First Defendant
LING NING
Second DefendantBARFOOT & THOMPSON
Third Defendant
Hearing: On the papers Counsel:
D Delic, S Lu and Z Evita for Plaintiffs R M Dillon for First Defendant
E R Harrison and S J MacIntosh for Second and Third Defendants
Judgment:
20 December 2023
JUDGMENT OF RADICH J
(Recalling substantive judgment in order to add interest to judgment sums)
[1]In my decision of 4 August 2023, I made orders:
(a)Rectifying an agreement for sale and purchase between the plaintiffs, as purchasers, and the first defendant, as vendor, to give effect to the parties’ common intention that the purchase price for a property was to be $1.58 million including GST, rather than $1.58 million plus GST.
(b)Requiring the sum of $237,000 (reflecting the value of the GST on the
$1.58 million price that had been held in trust pending the outcome of the case) to be repaid to the plaintiffs as damages.
FENG AND CAI v SEA.TX PROPERTY LIMITED [2023] NZHC 3825 [20 December 2023]
(c)Requiring the first defendant to pay to the plaintiffs the sum of $66,447 (being interest paid by the plaintiffs on the loan that was required to fund the payment of $237,000, as damages).
[2] In an application of 27 September 2023, the plaintiffs seek recall of the judgment for the purpose of including in the Court’s orders interest under s 10 of the Interest on Money Claims Act 2016 on the sum of $237,000 and on the sum of
$66,447.
[3] The first defendant does not oppose the recall request as such but asks that any interest awarded not involve double counting of interest in ways I come on to describe. The second and third defendants do not oppose the application.
[4] I am satisfied that the judgment should be recalled under r 11.9 of the High Court Rules 2016 to make provision for the interest claimed. I apply the time- honoured tests established by Wild CJ in Horowhenua County v Nash in which it was found that a judgment may be recalled where there has been a relevant statute or authority since the hearing, where counsel failed to direct the Court’s attention to a statute or authority or where for some other reason justice requires the judgment to be recalled.1 The position here is on all fours with the decision of Holland J in Brake v Boote in which it was said:2
It is quite apparent from my reasons for judgment that I failed to apply my mind to the relief sought under para (b) of the second cause of action in the amended statement of claim seeking interest from the date of settlement to the date of judgment in accordance with the provisions of the Judicature Act.
[5] The same is so here. The prayer for relief in…
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- Case
- [2023] NZHC 3825
- Decision Date
CaseChat Overview and Summary
The legal issues that the court had to decide included the proper interpretation of the purchase price in the context of GST, the calculation of damages for the GST amount held in trust, and the appropriate application of interest on the damages awarded. The court had to determine whether the interest claimed by the plaintiffs should be compounded and whether double counting of interest was permissible.
In its judgment, the court recalled the previous decision to include interest under the Interest on Money Claims Act 2016. The court acknowledged that while interest was due on the sum of $237,000 from 2 December 2019 to the date of judgment, interest on the bridging finance of $66,447 should not be compounded. The court emphasised the importance of avoiding double counting of interest and ensuring that justice is served. The court exercised its discretion to recall the previous decision, and made an order for interest on the sum of $237,000 from 2 December 2019 to the date of judgment.
This decision clarifies the proper calculation of interest in cases involving damages for GST and bridging finance, ensuring that the plaintiffs receive the interest they are owed without compounding or double counting.
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Decision
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