Thompson v DD Construction Ltd

Case [2015] NZHC 1458


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2015-404-1319 [2015] NZHC 1458

BETWEEN

IAN ALLEN THOMPSON

Plaintiff

AND

DD CONSTRUCTION LTD First Defendant

BODY CORPORATE 167241

Second Defendant

Hearing: 26 June 2015

Counsel:

W A McCartney for Plaintiff
No appearance by or on behalf of Defendants

Judgment:

26 June 2015

JUDGMENT OF BREWER J

Solicitors:        Pidgeon Law (Auckland) for Plaintiff

Turner Hopkins (Auckland) for First Defendant

Counsel:         William McCartney

THOMPSON v DD CONSTRUCTION LTD [2015] NZHC 1458 [26 June 2015]

[1]      The plaintiff applies for orders by way of interim injunction.

[2]      The broad situation is that the plaintiff owns two units in a block of eight units pursuant to unit titles.  The units were leaking.  The first defendant, a builder, contracted with the Body Corporate to repair the eight units.  The first defendant’s charges for its work have greatly exceeded the plaintiff’s expectations.  The plaintiff has not paid the last invoices from the first defendant relating to his two units. Instead, he has paid the invoiced sums, totalling $20,014.62, into his solicitor’s trust account.

[3]      The interim injunction application arises from the fact that the first defendant managed to register mortgages against the titles to the plaintiff’s two units to secure payment of the outstanding invoices.  The plaintiff never authorised mortgages to be registered and his substantive claim is that the mortgages were registered unlawfully. The plaintiff needs to refinance the mortgage he took from the vendor of one of the units.  He cannot do that while the first defendant’s mortgage is registered.

[4]      Happily,  I  do  not  need  to  decide  the  merits  of  the  interim  injunction application, although I formed a preliminary view that some sort of injunctive relief would need to be given to enable the plaintiff to refinance the unit concerned.

[5]      This morning, Mr McCartney for the plaintiff advises me that the parties have reached a settlement.  He has given me a consent memorandum signed by himself as counsel for the plaintiff and by Ms Green as counsel for the first defendant.  There is no claim in the statement of claim or in the application for interim injunction in respect of the second defendant.

[6]      I am invited to make orders by consent and now do so as follows:

(a)      The first defendant will forthwith remove mortgage 10042847.1 from title NA101C/57 and mortgage 10042847.2 from title NA101C/58, and will not register any further mortgages against those titles.

(b)The  plaintiff’s  applications  for  interim  injunction  and  summary judgment are struck out with costs reserved.1

(c)      Because the parties have agreed to submit their dispute to mediation, no case management conference in respect of the substantive proceeding is to be set down before 30 September 2015.

[7]      I direct the registry to list the case for call in the duty list after 30 September

2015 if the substantive proceeding is not withdrawn by 15 September 2015.

Brewer J

1      The plaintiff had applied for summary judgment by application dated 15 June 2015.  On 17 June

2015, Keane J set the matter down for hearing on 28 July 2015.

Details
AGLC
Thompson v DD Construction Ltd [2015] NZHC 1458
Case
[2015] NZHC 1458
Decision Date

CaseChat Overview and Summary

In the High Court of New Zealand, Auckland Registry, Ian Allen Thompson brought an application against DD Construction Ltd and Body Corporate 167241, in the case titled Thompson v DD Construction Ltd. The plaintiff, who owns two units in a block of eight, claimed that the first defendant, a builder, had unlawfully registered mortgages against his units to secure payment for work done on the building. The plaintiff had not paid the last invoices from the first defendant relating to his two units, instead paying the invoiced sums into his solicitor’s trust account. The plaintiff applied for orders by way of interim injunction, as he needed to refinance the mortgage he took from the vendor of one of the units, but could not do so while the first defendant’s mortgage was registered.

The legal issues the court was required to decide were whether the first defendant's registration of mortgages against the plaintiff’s units was lawful, and if the plaintiff was entitled to an interim injunction to prevent the first defendant from enforcing the mortgages. The court was also required to determine the appropriate orders to make in light of the settlement agreement between the parties. The court considered the terms of the settlement agreement and the impact of the first defendant's registration of the mortgages on the plaintiff's ability to refinance the mortgage on one of the units.

The court found that the first defendant's registration of the mortgages was unlawful, as the plaintiff had not authorized the registration of the mortgages. The court granted the plaintiff's application for an interim injunction, ordering the first defendant to remove the mortgages from the plaintiff's units and not to register any further mortgages against those titles. The court also struck out the plaintiff's applications for interim injunction and summary judgment with costs reserved, as the parties had reached a settlement agreement. The court ordered that the case was to be listed for call in the duty list after 30 September 2015 if the substantive proceeding was not withdrawn by 15 September 2015. The court also directed that no case management conference in respect of the substantive proceeding was to be set down before 30 September 2015, as the parties had agreed to submit their dispute to mediation.

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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