IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE
CIV-2015-404-2384
[2020] NZHC 921
BETWEEN JIANGANG XU
First Plaintiff
YOUZHI ZHU
Second PlaintiffAND
JIN LIU
First Defendant
PING WANG
Second Defendant
Hearing (via AVL): 4 May 2020 Appearances:
C Huang for the Plaintiffs
G P Blanchard QC for the Defendants
Judgment:
6 May 2020
JUDGMENT OF GAULT J
This judgment was delivered by me on 6 May 2020 at 2:00 pm pursuant to r 11.5 of the High Court Rules 2016.
Registrar/Deputy Registrar
……………………………………
Solicitors / Counsel:
Mr C Huang, Queen City Law, Auckland Mr G P Blanchard QC, Barrister, Auckland Mr C Jiang, Glaister Ennor, Auckland
XU v LIU [2020] NZHC 921 [6 May 2020]
[1] Following the plaintiffs’ failure to pay security for costs of $60,000 by 24 December 2019, as required by a consent order dated 10 September 2019, the defendants filed an application dated 12 February 2020 to dismiss the proceeding and discharge a freezing order in place.
[2] On 17 February 2020 Downs J made a (varied) unless order that the plaintiffs must pay security for costs in full by 5.00 pm 27 February 2020. It provided that if they did not, the claim would be stayed. The freezing order would also be discharged.
[3] The plaintiffs did not pay the security, but their solicitor filed a memorandum on 27 February 2020 indicating that after some difficulty the plaintiffs had transferred the money from China and expected it to clear within a week. On 28 February 2020 van Bohemen J recalled the 17 February order insofar as it related to the discharge of the freezing order and substituted it with an order that unless the plaintiffs paid security for costs in full by 5.00 pm 5 March 2020, the freezing order would be discharged. The plaintiffs did not pay by that date, and the freezing order was therefore discharged.
[4] On 28 April 2020 Lang J issued a minute recording that security for costs had not yet been paid and the proceeding remains stayed. He listed the defendants’ application to dismiss the proceeding for mention in the Duty Judge list on Monday 4 May 2020, warning that if the security remains unpaid, he anticipated the presiding judge would grant the application and dismiss the proceeding.
[5] At the mention on Monday, Mr Blanchard QC, for the defendants, sought an order dismissing the proceeding. Security for costs remained unpaid.
[6] Mr Huang, for the plaintiffs, requested that the Court allow the proceeding to continue to be stayed for six months to allow time for the plaintiffs to source funds to comply with the security for costs order. He referred to his memorandum of 9 April 2020 to similar effect, which I had not seen. I observed that requesting a further extension in this way appeared not to appreciate that the proceeding is already stayed as a result of the breach of an unless order, and in those…
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- AGLC
- Xu v Liu [2020] NZHC 921
- Case
- [2020] NZHC 921
- Decision Date
CaseChat Overview and Summary
The Court considered whether the interests of justice required dismissal, taking into account the duration and impact of the default, the absence of an adequate explanation or excuse, and the substantial prejudice to the defendants. The plaintiffs had been in default since December 2019, and the proceeding had been stayed since February 2020. The defendants argued that they were unable to defend the case due to the plaintiffs' non-compliance, resulting in significant uncertainty, financial pressures, and stress. The Court noted that the plaintiffs' financial difficulties might have been exacerbated by the COVID-19 situation, but this did not justify their continued non-compliance.
The Court concluded that there was little point in issuing another unless order before dismissal. However, considering the plaintiffs' potential lack of understanding of the seriousness of the situation and the possibility of their difficulties being exacerbated by the COVID-19 situation, the Court decided to give the plaintiffs one final opportunity to pay the security and seek to lift the stay before the proceeding was dismissed. The Court ordered that unless the plaintiffs paid the security for costs and applied to discharge the stay by 5:00 pm on Friday, 29 May 2020, the proceeding would be dismissed.
The Court also ordered that the defendants were entitled to costs. If the parties could not agree on the costs, the defendants had to file and serve a memorandum within 15 working days, and the plaintiffs had to file and serve a memorandum within 10 working days thereafter. The Court would then determine the costs on the papers.
Orders
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Background
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Decision
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