Mao v Industrial and Commercial Bank of China (New Zealand) Limited

Case [2021] NZCA 36


IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA

 CA643/2020
 [2021] NZCA 36

BETWEEN

LIANSEN MAO
Applicant

AND

INDUSTRIAL AND COMMERCIAL BANK OF CHINA (NEW ZEALAND) LIMITED
First Respondent

AND

QIAN HOU
Second Respondent

Counsel:

Applicant in person
D T Broadmore and L M Edginton for Respondents

Judgment:
(On the papers)

2 March 2021 at 11.30 am

JUDGMENT OF MILLER J
(Review of Registrar’s Decision)

AThe application for review of the Registrar’s decision not to dispense with security for costs is declined.

BPayment of security of $7,060 must be made on or before Tuesday 16 March 2021.

____________________________________________________________________

REASONS

  1. This judgment responds to an application to review the Registrar’s refusal to waive security for costs.  The Registrar was correct.  My reasons will be brief.

  2. The decision under appeal was given by Whata J in the form of a minute issued on 28 October 2020.  The Judge struck out a proceeding in which Mr Mao challenged a settlement with the respondent Bank.  It was a fourth proceeding in litigation challenging the Bank’s decision to recover a shortfall on a mortgagee’s sale in New Zealand by obtaining a judgment and freezing orders in China.  The proceedings have been struck out as untenable or abusive, and Whata J considered this proceeding was either a rerun of those proceedings or the claims ought to have been brought earlier.

  3. Mr Mao says that his appeal is a matter of public interest and further that the bank abused court powers by obtaining freezing orders in China.  He also says that the bank has adequate security under the freezing orders.

  4. I agree with the Registrar that it has not been shown that the respondent should have to defend this appeal without security.  Mr Mao does not claim to be impecunious, and it is not apparent to me that his appeal raises any question of public interest.  Nor do I accept that the bank already has security; it maintains that assets affected by the freezing order are of insufficient value to recover amounts owed to the bank and the frozen assets may not necessarily be available for a costs order made in New Zealand.  There is force in the bank’s submission that it needs the protection afforded by security because Mr Mao’s conduct is vexatious.

  5. The application is dismissed.  The Registrar extended time for payment of $7,060 until 5 February.  I will extend time for payment of that sum until 16 March 2021.

Solicitors:
Buddle Findlay, Auckland for Respondents

Details
AGLC
Mao v Industrial and Commercial Bank of China (New Zealand) Limited [2021] NZCA 36
Case
[2021] NZCA 36
Decision Date

CaseChat Overview and Summary

In the Court of Appeal of New Zealand, the matter of Liansen Mao, the applicant, versus Industrial and Commercial Bank of China (New Zealand) Limited, the first respondent, and Qian Hou, the second respondent, was heard on an application to review a decision of the Registrar not to dispense with security for costs. The applicant, Mr Mao, was seeking to challenge a settlement with the bank and had previously engaged in multiple legal proceedings against the bank regarding a shortfall on a mortgagee’s sale in New Zealand and subsequent actions taken by the bank in China to recover the debt. The proceedings were struck out by Whata J as being untenable or abusive, with the current proceeding considered either a rerun of earlier cases or claims that should have been brought sooner.

The legal issues before the court centred on whether the applicant should be required to provide security for costs in order to proceed with the appeal. Mr Mao argued that the appeal was of public interest and that the bank had adequate security under the freezing orders obtained in China. The bank, on the other hand, maintained that the assets affected by the freezing orders were of insufficient value to recover the amounts owed, and thus, were not suitable security for costs in New Zealand. Additionally, the bank asserted that the applicant's conduct had been vexatious, necessitating the protection afforded by security.

The court found in favour of the Registrar’s decision not to waive the requirement for security. It was determined that Mr Mao had not demonstrated that the respondent should be required to defend the appeal without security. The court did not accept that the appeal raised questions of public interest or that the assets under the freezing orders in China could be considered adequate security. The court also noted that the bank's need for protection from vexatious conduct supported the requirement for security. Consequently, the application to review the Registrar's decision was dismissed. The time for payment of the required security of $7,060 was extended to 16 March 2021.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.