IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY
I TE KŌTI MATUA O AOTEAROA ŌTAUTAHI ROHE
CIV-2024-409-000163
[2024] NZHC 2774
BETWEEN RANGLY DEVELOPMENTS LTD
Appellant
AND
JCL EQUITIES LTD
Respondent
Hearing: On the papers Appearances:
B G Walker for Appellant
H C Matthews for Respondent
Judgment:
25 September 2024
JUDGMENT OF EATON J
(extending time to pay security for costs)
This judgment was delivered by me on …….. at ……… pursuant to Rule 11.5 of the High Court Rules
Registrar/Deputy Registrar Date:
RANGLY DEVELOPMENTS LTD v JCL EQUITIES LTD [2024] NZHC 2774 [25 September 2024]
[1] The respondent brought proceedings against the appellant in the District Court seeking a refund of a deposit on the purchase of a residential property. The appellant sought summary judgment on the grounds that none of the pleaded causes of action could succeed. In a reserve judgment dated 15 March 2024, Judge Kelly dismissed the application for security of costs. The appellant has since filed an appeal against that decision.
[2] An issue has arisen as regards payment of security for costs and the consequential status of this appeal.
Procedural history and submissions
[3] By consent memorandum that gave rise to judicial directions, security for costs in the sum of $1,195 was due for payment within 10 working days of 9 May 2024. The appellant failed to pay the security within that timeframe. This failure was through no fault of the appellant. Mr Walker, counsel for the appellant, had agreed to make the payment for the appellant, but due to oversight omitted to do so. Security for costs was ultimately paid on 13 June 2024.
[4] On 25 June, Mr Matthews for the respondent wrote to Mr Walker recording that security for costs had not been paid by the due date, with reference to rule 20.13(3) of the High Court Rules 2016 (the Rules) and s 126(3) of the District Court Act 2016 and that the appeal was deemed to have been abandoned. Mr Walker responded confirming that the omission was counsel’s oversight. He referred to SNB Holdings Ltd v Slabbert as authority for the Court to retrospectively extend the time to pay security under r 1.19 of the High Court Rules 2016.1
[5] Unfortunately, Mr Walker’s email did not resolve the impasse. Mr Walker then filed a memorandum dated 19 August 2024 informing the Court of the issue and confirming that the appellant wished to continue with the appeal rather than abandon it and file a fresh appeal. Mr Walker submitted that the Court has, and should exercise, its jurisdiction to extend time in relation to the requirement to pay security as it did in Slabbert, because the respondent has not suffered any prejudice.
[6] In a reply memorandum dated 21 August 2024, Mr Matthews submitted that the appeal must be deemed abandoned by operation of s 126(3) of the District Court Act. In any event, acknowledging Mr Walker’s reliance on Slabbert
Continue reading Rangly Developments Limited v JCL Equities Limited
Sign in free to access the full text
- AGLC
- Rangly Developments Limited v JCL Equities Limited [2024] NZHC 2774
- Case
- [2024] NZHC 2774
- Decision Date
CaseChat Overview and Summary
The court had to determine whether it had the jurisdiction to extend the time for the payment of security for costs under rule 1.19 of the High Court Rules 2016 and whether such an extension should be granted in the circumstances. The court referenced previous cases, including SNB Holdings Ltd v Slabbert, to find that the court indeed had the jurisdiction to extend the time for payment of security for costs. The court also found that the appellant's failure to pay the security was due to an oversight by counsel and not the appellant. The court noted that the appellant was not at fault and had paid the security immediately upon discovering the oversight. There was no prejudice to the respondent. The security amount was relatively small compared to the likely costs of appeal, and there was no suggestion that the appeal was not bona fide.
The court decided to grant the extension of time for payment of security for costs, finding that the appellant's failure to pay was inadvertent, and the appellant was not at fault. The court also found that there was no prejudice to the respondent and that the appeal was genuine. The court extended the time for payment of security for costs and allowed the appeal to proceed as scheduled. The court also decided that there was no need to impose additional security.
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.