Jacquet v Yarrow

Case [2015] NZHC 2873


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2015-404-665 [2015] NZHC 2873

BETWEEN  JEAN PHILLIPPE THADDEE JACQUET AND ESTHER TCHOUA JACQUET AS TRUSTEES OF THE ESTHER

JACQUET FAMILY TRUST AND JEAN PHILLIPPE THADDEE JACQUET AND TREVOR KEITH BOSS AS TRUSTEES OF THE JEAN PHILLIPPE THADDEE JACQUET FAMILY TRUST AND JEAN PHILLIPPE THADDEE JACQUET AND ESTHER TCHOUA JACQUET PERSONALLY

First Plaintiffs

TREVOR KEITH BOSS AND BRIAN ERSKINE-SHAW AS TRUSTEES OF THE TREVOR BOSS FAMILY TRUST Second Plaintiffs

Continued over

Hearing: 30 September 2015

Appearances:

G J Judd QC for Plaintiffs
B J Mills for Defendants

Judgment:

18 November 2015

JUDGMENT OF M PETERS J

This judgment was delivered by Justice M Peters on 18 November 2015 at 4 pm pursuant to r 11.5 of the High Court Rules

Registrar/Deputy Registrar

Date: ...................................

JACQUET v YARROW [2015] NZHC 2873 [18 November 2015]

ANDPAUL STEVEN YARROW First Defendant

PAUL STEVEN YARROW, MICHAEL CHANEL FINNIGAN AND SALVATORE RUSSO AS TRUSTEES OF THE PS YARROW FAMILY TRUST (NO 2)

Second Defendants

The application

[1]      The Plaintiffs seek summary judgment in respect of sums said to be due from the Defendants pursuant to a Deed of Guarantee and Indemnity dated 25 August

2006 (“guarantee”).1

[2]      Only Mr Yarrow, the First Defendant and the first named of the Second Defendants (sued as trustees of the PS Yarrow Family Trust (No 2) – “trust”), has opposed the substance of the Plaintiffs’ application.

[3]      The  Plaintiffs  have  discontinued  against  Mr  Russo,  one  of  the  Second

Defendants.

[4]      Mr Finnigan, another of the Second Defendants, has applied to have the proceeding against him struck out on the ground that any liability he might have is limited to the net assets of the trust in his hands and that he no longer holds any such assets.2     Mr Yarrow has not disputed Mr Finnigan’s evidence on this issue. Accordingly,  and  subject  to  matters  referred  to  in  counsel’s  submissions  dated

7 September 2015, I grant Mr Finnigan’s application but reserve the matter of costs.3

[5]      High Court Rules, r 12.2(1) provides:

12.2Judgment when there is no defence or when no cause of action can succeed

(1)       The court may give judgment against a defendant if the plaintiff satisfies the court that the defendant has no defence to a cause of action in the statement of claim or to a particular part of any such cause of action.

[6]      In Krukziener v Hanover Finance Ltd guidance was given as to how the

Court is to determine an application for summary judgment by a plaintiff:4

The question on a summary judgment application is whether the defendant has no defence to the claim; that is, that there is no real question to be tried:

1      Notice  of  Interlocutory Application  by  Plaintiffs  for  Order  for  Summary  Judgment  dated

12 March 2015, and Affidavit of T K Boss sworn 12 March 2015 at Exhibit “E”.

2      Notice of Interlocutory Application on Notice by the Second-Named Second Defendant dated

31 July 2015.

3      Submissions in support of Summary…

Details
AGLC
Jacquet v Yarrow [2015] NZHC 2873
Case
[2015] NZHC 2873
Decision Date

CaseChat Overview and Summary

The case of Jacquet v Yarrow involves a dispute between the Plaintiffs, who are associated with Jean Phillippe Thaddee Jacquet and Trevor Keith Boss, and the Defendants, including Paul Steven Yarrow and the trustees of the PS Yarrow Family Trust. The Plaintiffs seek summary judgment for sums due from the Defendants under a Deed of Guarantee and Indemnity dated 25 August 2006. The central issue is whether Mr Yarrow, both personally and as trustee, is liable to the Plaintiffs under the guarantee for the sum due from Gilles Bakery Limited (GBL) for the redemption of redeemable preference shares (RPS). The Plaintiffs hold RPS in GBL and had given notice to redeem them in August 2012, which GBL failed to do. The guarantee obligates the guarantors to pay the Plaintiffs if GBL fails to redeem the RPS.

Mr Yarrow opposes the application, asserting several defences, including claims of fraud by Mr Finnigan, who executed documents on Mr Yarrow's behalf, the voiding of the RPS transaction by a subsequent deed, issues with the execution of the deed, improper exercise of a power allowing Mr Finnigan to sign on behalf of Mr Yarrow, and the lack of proper authorization for the RPS transaction. The court considers these arguments, noting that any dispute between Mr Yarrow and Mr Finnigan does not affect Mr Yarrow's liability to the Plaintiffs. The court finds that the Plaintiffs' claim is made out and that Mr Yarrow's defences do not prevent the entry of judgment.

The court grants judgment to the Plaintiffs as to liability only, ordering the parties to determine the quantum of damages and file submissions by 2 December 2015. The Plaintiffs are awarded costs from Mr Yarrow on a 2B basis, with further details to be fixed by the Registrar if necessary. The court reserves the matter of costs between the Plaintiffs and Mr Finnigan, allowing them to agree or file submissions if unable to do so.

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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