Rudyard Holdings Limited v Kiwibank Limited

Case

[2014] NZHC 129

12 February 2014

No judgment structure available for this case.

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2012-404-003684 [2014] NZHC 129

BETWEEN  RUDYARD HOLDINGS LIMITED Plaintiff

ANDKIWIBANK LIMITED Defendant

Hearing:                   12 February 2014 (by telephone) Counsel:        P J Dale for Plaintiff

S A Barker, P Niven and M J Bell for Defendant

Judgment:                12 February 2014

JUDGMENT OF VENNING J On application for adjournment

This judgment was delivered by me on 12 February 2014 at 2.15 pm, pursuant to Rule 11.5 of the

High Court Rules.

Registrar/Deputy Registrar

Date……………

Solicitors:           Neilsons Lawyers Limited, Auckland

Buddle Findlay, Auckland

Copy to:            P J Dale, Auckland

RUDYARD HOLDINGS LTD v KIWIBANK LTD [2014] NZHC 129 [12 February 2014]

[1]      The Registrar has referred this file to me as Executive Judge. The proceeding has a fixture scheduled to commence on 17 March 2014 (eight days allocated).  The plaintiff seeks to adjourn the fixture.  The application for adjournment is opposed by the defendant.  The application for adjournment is pursued on the basis that on 31

January 2014 the defendant filed a counterclaim.  The plaintiff considers it will not be able  to  respond  to  the counterclaim  in  the  time available before trial.   The application for adjournment is supported by an affidavit of Mr Halse, a director of the plaintiff and Ms Gardien, a legal trust accountant.

[2]      In the proceeding the plaintiff sues the Bank for damages arising out of the Bank’s refusal to continue to fund a property development contrary, it is said, to an agreement  reached  by  the  parties  and  representations  made  by  the  Bank.    The plaintiff also seeks to recover losses arising out of mortgagee sale conducted by the Bank.   The Bank’s counterclaim is for the balance of moneys it says is due and owing pursuant to the facilities advanced by it and guaranteed by the plaintiff.

[3]      In  support  of  the  application  for  adjournment  Mr  Dale  referred  to  the affidavits of Mr Halse and Ms Gardien noting that Mr Barker had initially indicated he would recommend his client agree to an adjournment.1    Mr Dale submitted that although the plaintiff could have its witness statements ready within time he was of the view, based on his current instructions, the plaintiff would not be able to respond to the counterclaim in time for the fixture on 17 March 2014.

[4]      As noted, the defendant Bank opposes any adjournment.   It considers the plaintiff’s claim is unmeritorious and makes the point  that the counterclaim for moneys owing by the Bank is of the nature of a counterclaim regularly raised in summary judgment proceedings.

[5]      In preparation for the hearing which was conducted by telephone conference I reviewed the file.   I have also considered the affidavits of Mr Halse and Ms Gardien.   I am satisfied that there is time for the plaintiff to respond to the counterclaim raised by the Bank.  While the counterclaim may have only been filed

on 31 January 2014, in a claim against a Bank arising out of a banker/customer

1      That was on 3 February, but on 4 February Mr Barker confirmed the Bank wished to proceed.

relationship it can hardly be surprising that the Bank would seek to recover by way of counterclaim moneys which it says are due and owing as a consequence of that relationship.  The underlying loan documents are readily identifiable and available. The difficulty that arises in the present case is as a consequence of the number of entities with cross-guarantees and the transactions involving those cross-entities and credits arising from repayments.   However, that is a matter of reconciliation of accounts – largely an accounting exercise.   Ms Gardien says she will need five working days to address the issues at least.  That can be provided on the timetable I propose to fix so that time will be available to her.

[6]      Mr Dale also raised the issue of documents relating to the counterclaim not being available to the plaintiff.  Mr Barker countered by noting that Bank statements have  been  sent  to  Mr  Halse’s  firm’s  PO  box.    Further  documents  have  been discovered and sent to Mr Dale.  He considers that the Bank has made full discovery.

[7]      Despite the matters raised by Mr Dale  (including the background to  the proceeding) I am satisfied that it is in the interests of justice that the trial date be maintained.   The case has been before the Court since 2012.   As noted the counterclaim can hardly have been entirely unexpected.   The plaintiff was due to exchange its witness statements by 31 January 2014.  Time can be provided for the plaintiff to respond to the defendant’s counterclaim.

[8]      The application for adjournment is declined.

Directions

[9]      The plaintiff is to file and serve an amended statement of claim and a defence

to the defendant’s counterclaim by 19 February 2014.

[10]     The date for the plaintiff to exchange its witness statements in support of its claim against the defendant is extended to 19 February 2014.

[11]     The   defendant   is   to   exchange   witness   statements   in   support   of   its counterclaim by 19 February 2014.

[12]     Defendant to file and serve a statement of defence to the amended claim by

28 February 2014.

[13]     Witness statements in reply by the plaintiff to the defendant’s counterclaim

by 10 March 2014.

[14]     Witness statements in reply by the defendant to the plaintiff’s claim by 10

March 2014.

[15]     Plaintiff to file and serve common bundle by 13 March 2014. [16]     Plaintiff to file and serve opening by 13 March 2014.

[17]    I note that during the course of the conference Mr Barker indicated an application would be made for the evidence of one of the Bank’s witnesses to be taken by video link.  Mr Dale indicated that would be opposed.  The Registrar is to note the application will have to be dealt with in advance of trial.

[18]     Leave reserved to either party to apply further.

Costs

[19]     The defendant  has  successfully opposed  the  application  for adjournment. Costs  to  the  defendant  on  a  2B  basis  on  the  application  for  adjournment  and

conference call.

Venning J

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