IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE
CIV-2023-404-2953
[2023] NZHC 3663
UNDER Section 142 of the Land Transfer Act 2017 IN THE MATTER OF
an application for an order removing caveat no. 12780903.1 (North Auckland Registry)
BETWEEN
HND HOLDING LIMITED
Applicant
AND
EE KUOH LAU
Respondent
Hearing: 12 December 2023 Counsel:
R O Parmenter for the Applicant Respondent in person
Judgment:
14 December 2023
JUDGMENT OF ASSOCIATE JUDGE BRITTAIN
This judgment was delivered by me on 14 December 2023 at 4 pm.
Pursuant to Rule 11.5 of the High Court Rules.
…………………..
Registrar/Deputy Registrar
Solicitors/Counsel:
R Parmenter, Auckland
Ganda & Associates, Auckland
HND HOLDING LTD v LAU [2023] NZHC 3663 [14 December 2023]
Introduction
[1] This is an application by HND Holding Limited, as mortgagee, for an order removing a caveat from a title to a property at 111 Waitakere Road, Waitakere. HND has sold the property exercising its power of sale. HND is prevented from completing settlement of the sale by a caveat lodged against the title by Mr Lau.
[2] HND applied without notice for an order removing the caveat. I directed HND to proceed on a Pickwick basis. Mr Lau was served, and he appeared by VMR when this proceeding was called in the Caveats List on 12 December 2023. Mr Lau has since filed a notice of opposition, supporting affidavit from Daniel Kwok, and written submissions.
[3] When the matter was called on 12 December 2023, the parties agreed that I should determine the matter on the papers, which I now do.
Discussion
[4] The caveat in question, 12780903.1, was lodged by Mr Lau against two Records of Title:
(a)Record of Title Identifier NA 87D/983, which is the subject of this proceeding;
(b)Record of Title Identifier NA 82B/163. I gave judgment in CIV-2023- 404-2783 on 1 December 2023, ordering that the caveat be removed from that Record of Title.
[5] The background to this application is largely identical to the background set out in paras [3] to [13] of my judgment dated 1 December 2023 in CIV-2023-404- 2783. The registered proprietor of the property in question in this proceeding is DASP Properties Limited, a company controlled by Daniel Kwok. The property has also been sold by HND to Joe Holdings Ltd.
[6] The interests claimed by Mr Lau in this case are identical to those claimed in CIV-2023-404-2783. As in that case, Mr Lau’s caveat was registered after HND’s mortgage, and is subordinate to it.
[7] For the same reasons that prevailed in CIV-2023-404-2783, Mr Lau’s caveat must be removed from the title to 111 Waitakere Road, Waitakere. In short, HND has an indefeasible title as registered mortgagee.
Orders
[8] I order that the caveat number 12780903.1 be removed from Record of Title Identifier NA 87D/983.
[9] Mr Lau shall pay costs to HND on a 2B basis, limited to the filing of the originating application and affidavit in support and .5 of a list appearance on 12 December 2023, plus disbursements as fixed by the registrar.
Associate Judge Brittain
- AGLC
- HND HOLDING LIMITED vs EE KUOH LAU [2023] NZHC 3663
- Case
- [2023] NZHC 3663
- Decision Date
CaseChat Overview and Summary
The legal issues before the court were whether the caveat should be removed from the title to the property and whether Mr Lau had a valid claim that would justify the continuation of the caveat. The court examined the background of the case, including the relationship between the parties and the history of the caveat. The court noted that the caveat had been lodged after HND's mortgage and was subordinate to it. The court also referred to a previous judgment in CIV-2023-404-2783, which had ordered the removal of the same caveat from another property.
The Associate Judge found that the caveat must be removed from the title to the property for the same reasons that prevailed in the previous judgment. The court held that HND had an indefeasible title as the registered mortgagee, and Mr Lau's caveat did not have any valid basis. The court ordered that the caveat number 12780903.1 be removed from the Record of Title Identifier NA 87D/983. The court also ordered that Mr Lau pay costs to HND on a 2B basis, limited to the filing of the originating application and affidavit in support and 0.5 of a list appearance on 12 December 2023, plus disbursements as fixed by the registrar.
This case highlights the importance of the indefeasibility of title in New Zealand property law. The court found that HND's interest as a registered mortgagee took precedence over Mr Lau's caveat, which was subordinate to it. The court also noted that Mr Lau's claims were identical to those made in a previous proceeding, and the same reasons applied. The case serves as a reminder that caveats are not a substitute for legal proceedings and should only be used in appropriate circumstances. The court's decision to remove the caveat and order costs against Mr Lau sends a strong message that frivolous or unfounded caveats will not be tolerated.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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