Sisson v Chesterfields Preschools Limited (in liquidation)

Therese Anne Sisson has appealed several decisions relating to her bankruptcy and the liquidation of Chesterfields Preschools Limited (CPL), a company in which she was a significant shareholder. The appeals, CA310/2017 (refusal to halt adjudication in bankruptcy), CA404/2017 (adjudication in bankruptcy), and CA682/2017 (costs order), were heard by the Court of Appeal of New Zealand and were dismissed. The appeals were opposed by the Official Assignee and CPL, represented by its liquidators. Sisson's primary argument was that the liquidation of CPL was improper, and she should not have been declared bankrupt until a misfeasance claim against officers of the Inland Revenue was resolved. The Court found that the liquidation of CPL was justified and that the costs award leading to Sisson's bankruptcy was valid. The Court also rejected Sisson's argument that she could set off damages claimed in the misfeasance proceeding against the costs award. As a result, Sisson's appeals were dismissed, and she was ordered to pay costs to the respondents in each appeal.

The Court of Appeal dismissed the appeals and ordered Sisson to pay costs to the respondents. The dismissal of the appeals means that the adjudication of Sisson as bankrupt stands, and she has no standing to pursue any further appeals relating to judgments that concern debts provable in her bankruptcy. The costs ordered are for a standard appeal on a band A basis, with certification for second counsel, plus usual disbursements. This judgment is the third in a series disposing of 11 appeals relating to the affairs of CPL, and the other judgments should be read together for a comprehensive understanding of the case.