Signum Holdings Limited v Okuora Holdings Limited

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTAUTAHI ROHE

CIV-2023-409-152

[2023] NZHC 3534

BETWEEN
SIGNUM HOLDINGS LIMITED

Applicant

AND

OKUORA HOLDINGS LIMITED

Respondent

Hearing: On the papers

Counsel:

D K Kalderimis and T J Powell for Respondent

Judgment:

5 December 2023

JUDGMENT OF ASSOCIATE JUDGE PAULSEN

(Costs)

This judgment was delivered by me on 5 December 2023 at 4.30 pm pursuant to Rule 11.5 of the High Court Rules.

Registrar/Deputy Registrar Date:

SIGNUM HOLDINGS LIMITED v OKUORA HOLDINGS LIMITED [2023] NZHC 3534 [5 December 2023]

[1] In a judgment of 1 November 2023, I dismissed the application by Signum Holdings Ltd (Signum), to set aside a statutory demand issued to it by Okuora Holdings Ltd (Okuora).1 I held Okuora was entitled to costs and directed counsel to confer and file memoranda if they could not agree on costs.

[2] Agreement was not reached on costs. On 8 November 2023, Signum was put into liquidation by special resolution of its shareholders. On 17 November 2023, Signum’s liquidators advised they were not privy to the background of the proceeding and would abide the Court’s decision on costs.

[3] Okuora submits that whilst this was an application to set aside a statutory demand it was also a complex matter because of the detailed factual background, the volume of documentation submitted to the Court, and the legal issues arising from a novel undue influence argument relied upon by Signum.

[4] Okuora has submitted a calculation of the costs claimed. In respect to it, I accept this is a category 2 proceeding for costs purposes. While I also accept some time allocations for steps in the proceeding should be assessed as band C, I consider others should not. I also do not consider step 32 applies to originating applications.

[5] I consider the disbursements claimed were all necessarily and reasonably incurred.

[6]I award costs in accordance with the table below:

1 Signum Holdings Ltd v Okuora Holdings Ltd [2023] NZHC 3041.

Step

Description

Allocation

Amount

48

Issuing statutory demand

0.2

$478

38

Filing opposition to originating application and supporting affidavits

6.0

$14,340

40

Preparation of written submissions

1.5

$3,585

42

Appearance at hearing of defended application for sole or principal counsel

1.0

$2,390

43

Second counsel

0.5

$1,195

29

Sealing judgment

0.2

$478

Total

9.4

$22,466

Counsel disbursements

Cost

Flights

$856.90

Accommodation

$492.00

Transport

$265.88

Filing fee

$110.00

Total

$1,724.78

Result

[7] Okuora is awarded costs against Signum in the sum of $22,466 together with disbursements of $1,724.78.

O G Paulsen Associate Judge

Solicitors:
Meredith Connell, Auckland
Harmos Horton Lusk Limited, Auckland

CaseChat Overview and Summary

In the High Court of New Zealand, Christchurch Registry, Signum Holdings Limited (Signum) sought to set aside a statutory demand issued by Okuora Holdings Limited (Okuora). The dispute centred on the validity of the statutory demand and the procedural fairness of the application. Associate Judge Paulsen was tasked with deciding whether the statutory demand was valid and, if not, whether it should be set aside. Additionally, the court had to determine the appropriate costs and disbursements to be awarded to Okuora.

The primary legal issues before the court were whether the statutory demand was valid and, if it was not, whether it should be set aside. Signum argued that the statutory demand was issued under undue influence and was therefore invalid. Okuora contended that the demand was valid and properly issued. The court had to examine the evidence and arguments presented by both parties to determine the validity of the statutory demand and the appropriate costs to be awarded.

Associate Judge Paulsen found that Okuora was entitled to costs and that the statutory demand was valid. The court held that the application was complex due to the detailed factual background and the volume of documentation submitted. Signum's argument of undue influence was deemed novel and legally complex, requiring extensive examination. The court awarded costs to Okuora, calculating the costs based on the time allocation and disbursements incurred. The court accepted Okuora's submission that the disbursements were reasonably and necessarily incurred.

The court awarded Okuora costs totaling $22,466, along with disbursements of $1,724.78. The detailed breakdown of costs included the issuing of the statutory demand, filing of the opposition, preparation of written submissions, and appearance at the hearing. The court's judgment concluded that Okuora was entitled to these costs as the application was complex and required significant legal work.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

Hearing:	On the papers
Counsel:	D K Kalderimis and T J Powell for Respondent
Judgment:	5 December 2023

Step	Description	Allocation	Amount
48	Issuing statutory demand	0.2	$478
38	Filing opposition to originating application and supporting affidavits	6.0	$14,340
40	Preparation of written submissions	1.5	$3,585
42	Appearance at hearing of defended application for sole or principal counsel	1.0	$2,390
43	Second counsel	0.5	$1,195
29	Sealing judgment	0.2	$478
Total	9.4	$22,466
Counsel disbursements		Cost
Flights		$856.90
Accommodation		$492.00
Transport		$265.88
Filing fee		$110.00
Total		$1,724.78