FFNZ Limited (in liq) v Flatfee NZ Limited Partnership HC Hamilton Civ-2011-419-000520

[2011] NZHC 809

IN THE HIGH COURT OF NEW ZEALAND HAMILTON REGISTRY

CIV-2011-419-000520

BETWEEN  FFNZ LIMITED (IN LIQUDATION) Plaintiff

ANDFLATFEE NZ LIMITED PARTNERSHIP Defendant

CIV-2011-419-000521

AND BETWEEN            FFNZ LIMITED (IN LIQUIDATION) Plaintiff

ANDFLATFEE NZ LIMITED PARTNERSHIP Defendant

Hearing:         11 July 2011

Appearances: C W Grenfell for Plaintiffs

K McLuskie for Defendants

Judgment:      11 July 2011

ORAL JUDGMENT OF CHISHOLM J

[1]      In each of these proceedings the plaintiffs seek to have the defendants placed in liquidation.   The plaintiffs are the general partner and the defendants the limited partner under the Limited Partnerships Act 2008.  The limited partnerships involved in each proceeding are related.   There is no challenge to an order placing the defendants into liquidation.   However, there is a dispute about who should be appointed as liquidators.

[2]      I understand that John Kenel has filed a notice of appearance in relation to each  defendant,  but  that  the  notices  were  not  filed  within  the  required  time.

FFNZ LIMITED (IN LIQUDATION) V FLATFEE NZ LIMITED PARTNERSHIP HC HAM CIV-2011-419-

000520 11 July 2011

Nevertheless, I allowed Ms McLuskie to appear on behalf of the defendants and make submissions.

[3]      The plaintiffs propose that  Boris Van  Delden  and  Gary Whimp,  both  of Auckland,  be  appointed  as  liquidators.    They  are  already  liquidators  of  both plaintiffs.  Their appointment is opposed, first, on the basis that Hamilton liquidators would be cheaper and, secondly, because there might be a conflict of interest. Alternative liquidators were proposed by Ms McLuskie.

[4]      Mr Grenfell indicated that Messrs Van Delden and Whimp are partners in McDonald  Vague,  insolvency specialists,  who  also  have  an  office  in  Hamilton. Consequently, any perceived cost differential should not arise.   He also submitted that logically the existing involvement of the proposed liquidators will be beneficial. And as far as the potential conflict of interest is concerned, Mr Grenfell submitted that the proposed liquidators are both professionals who would recognise any potential conflict and take appropriate steps.

[5]      Given their  existing involvement  I am satisfied  that it is appropriate for Mr Van Delden and Mr Whimp to be appointed as liquidators.   There is no solid evidence of any potential conflict.  As far as possible they should ensure that their Hamilton office is used.

[6]      In each case there will be the following orders:

(a)       Boris Van Delden and Gary Whimp are appointed as liquidators of each special partnership.

(b)      The appointment is timed at 12.12 p.m.

(c)       On each application there will be 2B costs plus disbursements as fixed by the registrar.

Solicitors:

Edmonds Judd, PO Box 35, Te Awamutu 3840

Tompkins Wake, P O Box 258 Waikato Mail Centre , Hamilton 3240