Owens v Coleman

Case [2016] NZHC 3080


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2016-404-138 [2016] NZHC 3080

UNDER the Companies Act 1993

IN THE MATTER

of the liquidation of Hagfish NZ Ltd (In
Liquidation)

BETWEEN

COLIN DAVID OWENS AND DAVID STUART VANCE AS LIQUIDATORS OF HAGFISH NZ LTD (IN LIQUIDATION) Plaintiffs

AND

PETER COLEMAN First Defendant

PETER COLEMAN and TRUST MANAGEMENT SERVICES LTD as trustees of The Hunua Holdings Trust Second Defendants

Hearing: (On the papers)

Counsel:

J Sumner for Plaintiffs

Judgment:

15 December 2016

JUDGMENT (NO.2) OF BREWER J

Solicitors:           Ford Sumner (Wellington) for Plaintiffs

OWENS AND VANCE v COLEMAN [2016] NZHC 3080 [15 December 2016]

Introduction

[1]      The plaintiffs, as liquidators of Hagfish NZ Ltd, seek judgment by default on the claim set out in their amended statement of claim dated 12 July 2016.

[2]      A formal proof hearing was convened on 8 September 2016.  I adjourned it part-heard for the reasons set out in my Judgment delivered on 4 November 2016.1

[3]      In my Judgment, I determined a number of the causes of action and gave directions as to the determination of the remaining causes of action.

[4]      I  have  now  received  a  memorandum  of  counsel  for  the  plaintiffs  dated

11 November 2016.  In it, counsel advises that the plaintiffs will take no further steps and request me to deliver a final Judgment in accordance with the findings made in my earlier Judgment.

[5]      I do not need to repeat orders made in my Judgment of 4 November 2016. However, it will be convenient to have all of the orders recorded in one place.

[6]      The following are my findings as made in my Judgment of 4 November

2016:

(a)       On the first cause of action, a finding for the plaintiffs in the sum of

$51,886.59.

(b)On the second and third causes of action, a finding for the plaintiffs in the sum of $86,575.

(c)       On the sixth cause of action, a finding for the plaintiffs in the sum of

$243,555.75

[7]      I make the following additional orders:

1      Owens & Vance v Coleman [2016] NZHC 2644.

(a)      I award interest to the plaintiffs of $14,443.08 being interest at the Judicature Act 1908 rate of 5 per cent per annum from the date of filing the statement of claim to the date of judgment (2 February 2016

– 4 November 2016) being $52.33 per day for 276 days.

(b)I award the plaintiffs solicitors costs on a 2B basis of $28,432.50 (in accordance with Schedule A to the memorandum of counsel dated

11 November 2016).

(c)      I award disbursements to the plaintiffs of $607 (in accordance with the said Schedule A and the receipts provided).

[8]      The plaintiffs may seal the certificate of judgment in the form filed with the memorandum of counsel.

[9]      The  remaining  causes  of  action  in  the  amended  statement  of  claim  are deemed abandoned and are dismissed accordingly.   This proceeding is now at an

end.

Brewer J

Details
AGLC
Owens v Coleman [2016] NZHC 3080
Case
[2016] NZHC 3080
Decision Date

CaseChat Overview and Summary

The High Court of New Zealand, Auckland Registry, heard a case concerning the liquidation of Hagfish NZ Ltd. The plaintiffs, Colin David Owens and David Stuart Vance, as liquidators of the company, sought judgment by default against Peter Coleman, the first defendant, and Trust Management Services Ltd, as trustees of The Hunua Holdings Trust, the second defendant. The plaintiffs sought damages for breaches of fiduciary duties, unjust enrichment, and other claims arising from the company's liquidation. The case proceeded on the papers, with the plaintiffs' counsel submitting a memorandum of counsel on 11 November 2016, requesting the court to deliver a final judgment based on the findings made in an earlier judgment dated 4 November 2016.

The court had to decide several legal issues, including whether the defendants breached their fiduciary duties, whether the plaintiffs were entitled to recover damages for unjust enrichment, and the quantum of damages, if any, owed by the defendants to the plaintiffs. The court also needed to determine whether the remaining causes of action in the amended statement of claim should be abandoned or proceeded with.

The court found in favour of the plaintiffs on several counts, awarding them damages for breaches of fiduciary duties, unjust enrichment, and other claims. The court ordered Peter Coleman to pay the plaintiffs $51,886.59 for the first cause of action, $86,575 for the second and third causes of action, and $243,555.75 for the sixth cause of action. The court also awarded interest, costs, and disbursements to the plaintiffs. The remaining causes of action were deemed abandoned and dismissed.

The court ordered that the plaintiffs could seal the certificate of judgment in the form filed with the memorandum of counsel. The case was now at an end. The final orders of the court were that the plaintiffs were awarded damages and costs as specified in the judgment, and the remaining causes of action were dismissed.

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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