IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE
CIV-2009-404-7379
[2018] NZHC 2337
IN THE MATTER of an interlocutory application for orders pursuant to a scheme settled under s 48 of the Unit Titles Act 1972 BETWEEN
JENNIFER ANN MAY AND ANDREW JOHN MAY
Applicants
AND
BODY CORPORATE 329331
First Respondent
REX BADDELEY
Second RespondentContinued …
Hearing: 5 September 2018 Appearances:
T Rainey for the First Respondent
A Lloyd and I Stephenson for the Applicants
Judgment:
6 September 2018
JUDGMENT OF CLARK J
(Results)
This judgment was delivered by me on 6 September 2018 at 9:30 a.m. pursuant to r 11.5 of the High Court Rules 1985.
Registrar/Deputy Registrar
……………………………………
Solicitors / Counsel:
Mr T Rainey, Barrister, Auckland
Mr A Lloyd and Mr I Stephenson, MinterEllisonRuddWatts, Solicitors, Auckland
MAY v BODY CORPORATE 329331 [2018] NZHC 2337 [6 September 2018]
PATRICIA ELIZABETH HALLT
Third Respondent
RICHARD GRAHAM MOGRIDGE
Fourth Respondent
CAROL ANNE MOGRIDGE
Fifth Respondent
JACQUELINE MCDERMOTT
Sixth Respondent
ROSS WILLIAM SHENNAN
Seventh Respondent
STEPHANIE MARGARET SHENNAN
Eighth Respondent
MPH08 LIMITED
Ninth Respondent
JAMES RONALD ASHTON
Tenth Respondent
ANNETTE JEAN ASHTON
Eleventh Respondent
JUST LAW NO.65 LIMITED
Twelfth Respondent
RODNEY CHARLES SWIFT
Thirteenth Respondent
FRANCES SWIFT
Fourteenth Respondent
MEAKINS TRUSTEE CO LIMITED
Fifteenth Respondent
207 LIMITED
Sixteenth Respondent
206 LIMITED
Seventeenth Respondent
JOHN CHARLES DEACON
Eighteenth Respondent
MARGARET MARY DEACON
Nineteenth Respondent
RAM TRUSTEE COMPANY LIMITED
Twentieth Respondent
203 LIMITED
Twenty First Respondent
202 LIMITED
Twenty Second Respondent
201 LIMITED
Twenty Third Respondent
GEORGE CHARLES HALLIDAY
Twenty Fourth Respondent
BRENDA MARY HALLIDAY
Twenty Fifth Respondent
307 LIMITED
Twenty Sixth Respondent
306 LIMITED
Twenty Seventh Respondent
JCBEEZ LIMITED
Twenty Eighth Respondent
H&P PROPERTIES LIMITED
Twenty Ninth Respondent
302 LIMITED
Thirtieth Respondent
OLEG ALEXANDROVICH ZAITSEV
Thirty First Respondent
OLGA NIKOLAYEVNA ZAITCEVA
Thirty Second Respondent
DENIS OLEGOVICH ZAITSEV
Thirty Third Respondent
PETER FRANCIS ANDREWS
Thirty Fourth Respondent
LINDA ANNE ANDREWS
Thirty Fifth Respondent
ANGUS STUART OGILVIE
Thirty Sixth Respondent
FIONA JANE MATHIESON
Thirty Seventh Respondent
BIG PICTURE INVESTMENTS LIMITED
Thirty Eighth Respondent
405 LIMITED
Thirty Ninth Respondent
404 LIMITED
Fortieth Respondent
403 LIMITED
Forty First Respondent
NOMACK GROUP LIMITED
Forty Second Respondent
WESTPAC NEW ZEALAND LIMITED
Forty Third Respondent
ASB BANK LIMITED
Forty Fourth Respondent
BANK OF NEW ZEALAND LIMITED
Forty Fifth Respondent
GEOFFREY PETER ROBERTON DE LATOUR
Forty Sixth Respondent
JUDITH MARGARET DE LATOUR
Forty Seventh Respondent
TIMOTHY JOHN BURCHER
Forty Eighth Respondent
ANZ BANK NEW ZEALAND LIMITED
Forty Ninth Respondent
DAVID JOHN MCFARLANE
Fiftieth Respondent
STEPHANIE ELIZABETH DOUGLAS BANKS
Fifty First Respondent
[1] The applicants’ application for the appointment of an administrator pursuant to s 141 of the Unit Titles Act 2010 (the Act), is granted.
[2] Although my reasons are to follow, having considered the extensive affidavit evidence filed in support of the application, and having heard from counsel on a Pickwick basis, I am satisfied it is necessary that an administrator of Body Corporate 329331 be appointed on an interim basis. Accordingly, I make the following orders:
(a)I appoint Anthony McCullagh, consultant, PKR Corporate Recovery and Insolvency, Auckland, as the administrator of Body Corporate 329331 for 30 working days from the date of this order.
(b)The administrator is to have and may exercise the powers of the Body Corporate and Body Corporate Committee pursuant to the Scheme1 (as varied or modified from time to time by order of the Court), to the exclusion of the Body Corporate and Body Corporate Committee.
(c)Without limiting the ambit of his powers and duties under (1)(b), the administrator will take all reasonable steps necessary to meet the obligations of the Body Corporate under the contract between the Body Corporate and Brosnan Construction Limited (Contractor) dated 29 June 2018 (Contract), which for the avoidance of doubt includes the following steps:
(i)procuring the principal’s bond and providing the principal’s bond to the contractor, pursuant to the special conditions and clause 3 of the general conditions of the Contract; and
(ii)raising levies necessary to meet Payment obligations under clause 12 of the Contract;
(iii)providing vacant possession pursuant to clause 5.4 of the Contract; and
1 That is, the Scheme governing repairs to the buildings comprised in Body Corporate 329331, sanctioned by order of the High Court on 11 February 2010.
(iv)consulting with the engineer for the appointment of an engineer to the Contract, pursuant to clause 6.1.3 of the Contract.
(d)Within five working days of the date of this order, and at intervals of 10 working days thereafter, the administrator will report to the Court, addressing:
(i)steps taken pursuant to these orders; and
(ii)charges rendered pursuant to these orders.
(e)A copy of the report shall be served on all members of the Body Corporate by sending the report to an address for service in the register of owners.
(f)The administrator’s remuneration by the Body Corporate is fixed in terms of the consent which Mr McCullagh filed in this Court.
(g)A copy of these orders is to be served on all those having a registered interest in any unit in Deposited Plan 329331.
(h)A copy of these orders is to be lodged with the Registrar General of Land.
[3] Leave is reserved for the administrator, and/or any person having a registered interest in a unit in Deposited Plan 329331, to apply to the Court to vary these orders.
Karen Clark J
- AGLC
- May v Body Corporate 329331 [2018] NZHC 2337
- Case
- [2018] NZHC 2337
- Decision Date
CaseChat Overview and Summary
Clark J granted the application for the appointment of an administrator, finding that it was necessary for the interim administration of the body corporate. The court was satisfied with the evidence presented, including affidavits and counsel's arguments, that the body corporate was unable to manage its financial obligations and ensure the proper functioning of the unit titles. The court considered the urgency and necessity of the situation, as well as the potential benefits of appointing an administrator to address the immediate issues and prevent further deterioration of the body corporate's financial and operational state. The court appointed Anthony McCullagh as the administrator for a period of 30 working days, with specific powers and duties outlined in the order.
Clark J made several orders in relation to the appointment of the administrator, including the exclusion of the body corporate and its committee from exercising their powers, the administrator's responsibility to meet the body corporate's obligations under a contract with Brosnan Construction Limited, and the requirement for the administrator to report to the court and serve copies of the report on all members of the body corporate. The court also fixed the administrator's remuneration and ordered that copies of the orders be served on all persons with a registered interest in any unit in Deposited Plan 329331 and lodged with the Registrar General of Land. The court reserved leave for the administrator or any person with a registered interest in a unit in Deposited Plan 329331 to apply to the court to vary these orders.
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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