| IN THE COURT OF APPEAL OF NEW ZEALAND |
| CA855/2012 [2014] NZCA 158 |
| BETWEEN | MALCOLM EDWARD RABSON |
| AND | WAYNE SEYMOUR CHAPMAN |
| Hearing: | 7 April 2014 |
Court: | O’Regan P, White and Miller JJ |
Counsel: | No appearance for Appellant |
Judgment: | 29 April 2014 at 10.30 am |
JUDGMENT OF THE COURT
AThe appeal is struck out.
BThe appellant is to pay the respondent’s costs for a standard application on a band A basis and usual disbursements.
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REASONS OF THE COURT
(Given by White J)
The respondent, Mr Chapman, applies for an order striking out an appeal by the appellant, Mr Rabson, under r 37 of the Court of Appeal (Civil) Rules 2005 because security for costs has not been paid. Mr Rabson’s appeal is against the decision of Kós J granting Mr Chapman vacant possession of a property.[1]
Mr Rabson has not filed any opposition to the strike‑out application and did not appear at the hearing of the application. Instead he filed a document suggesting that he had not been served with the application.
We are satisfied for the following reasons that the appeal should be struck out:
(a)Mr Rabson has not paid the security for costs of $5,880 as set by the Registrar of this Court on 11 January 2013. Attempts by Mr Rabson to have security dispensed with or reduced have all been unsuccessful.[2]
(b)It is an inevitable consequence of a failure to pay security for costs that the appeal will be struck out.[3]
(c)Notwithstanding Mr Rabson’s suggestion to the contrary, there is now affidavit evidence before the Court (the affidavit of N H Whalley dated 10 April 2014) that Mr Rabson was served with the strike‑out application and was, in any event, aware of the hearing date.
(d)The Official Assignee has now filed a memorandum dated 14 April 2014 confirming that Mr Rabson was adjudicated bankrupt on 18 March 2013 and that, in accordance with ss 117 and 118 of the Insolvency Act 2006 and decisions of this Court and the Supreme Court,[4] the Official Assignee has formally abandoned this appeal. As a consequence of Mr Rabson’s adjudication in bankruptcy, he has no standing to pursue the appeal which vested in the Official Assignee.[5]
Result
[4]Hart v ANZ Bank New Zealand Ltd [2013] NZCA 94 at [33] and Hart v ANZ Bank New Zealand Ltd [2013] NZSC 44 at [11].
[5]Insolvency Act 2006, s 101.
The appeal is therefore struck out.
Mr Rabson is to pay Mr Chapman’s costs for a standard application on a band A basis and usual disbursements. We do not certify for two counsel.
Solicitors:
Buddle Findlay, Wellington for Respondent
- AGLC
- Rabson v Chapman [2014] NZCA 158
- Case
- [2014] NZCA 158
- Decision Date
CaseChat Overview and Summary
The court was required to determine whether the appeal should be struck out due to Rabson's failure to pay the security for costs. The court also had to decide if Rabson had been properly served with the strike-out application and if his adjudication in bankruptcy impacted his ability to pursue the appeal. The court found that Rabson had not paid the required security for costs, despite multiple unsuccessful attempts to have it dispensed with or reduced. Furthermore, affidavit evidence confirmed that Rabson had been served with the application and was aware of the hearing date. The Official Assignee also filed a memorandum confirming that Rabson was adjudicated bankrupt on 18 March 2013, and as a result, he had no standing to pursue the appeal, as it vested in the Official Assignee.
The Court of Appeal struck out the appeal and ordered Rabson to pay Chapman's costs for a standard application on a band A basis and usual disbursements. The court did not certify for two counsel. The parties were represented by Buddle Findlay, Wellington for the respondent.
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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