ASB Bank Limited v Commissioner of Inland Revenue

Case [2015] NZHC 2177


IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2013-404-004038 [2015] NZHC 2177

BETWEEN

ASB BANK LIMITED

Plaintiff

AND

COMMISSIONER OF INLAND REVENUE

Defendant

Hearing: On the papers

Judgment:

10 September 2015

JUDGMENT OF COURTNEY J

This judgment was delivered by Justice Courtney on 10 September 2015 at 11.30 am

pursuant to R 11.5 of the High Court Rules

Registrar / Deputy Registrar

Date………………………...

ASB BANK LTD v COMMISSIONER OF INLAND REVENUE [2015] NZHC 2177 [10 September 2015]

[1]      Gareth  Vaughn  has  sought  permission  to  search  the  Court  file  of  this proceeding. The parties abide the decision of the Court.

[2]      Mr Vaughn  was  granted  permission  to  search  the  Court  file  (with  some limitations) on two previous occasions.   His present application (like the previous applications) falls to be determined under r 3.13 of the High Court Rules.   Under

3.16 there are a number of factors that need to be taken into account in determining such a request.  These were referred to in Winkelmann J’s previous decision granting Mr Vaughn permission to search the Court file and it is unnecessary to do so again here.1

[3]      When Mr Vaughn was last granted access in October 2014 the proceedings were still at an interlocutory stage.  They were discontinued before trial.  The Court file only contains three further documents filed by the parties, two joint memoranda of counsel and a notice of discontinuance.2

[4]      Whilst abiding the decision of the Court the ASB has raised for consideration the distinction drawn in past cases between access to pleadings and access to other material, with the principle of open justice having less force at the interlocutory stage than at the substantive hearing stage.   In Hawkes Bay Regional Council v Herbert Construction Co Limited Simon France J refused an application where the proceedings  had  been  discontinued  at  a  relatively  early  stage,  emphasising  the orderly administration of justice, which is one of the factors for consideration under

r 3.16. 3     He considered that early resolution of claims are to be encouraged and

when that occurs weight should be given to protecting defendants from harm that could ensue from the disclosure of untested allegations.

[5]      Simon France J’s approach was undoubtedly right.   However,   that   case   is distinguishable from the present case in it was “rather a routine commercial dispute” about building construction.  I accept that the present case carries a greater level of

public interest.  I consider that there is sufficient public interest to justify Mr Vaughn

1 ASB Bank Ltd v Commissioner of Inland Revenue [2014] NZHC 2391.

2      The ASB also filed opening submissions in anticipation of the hearing but these were returned to counsel upon the discontinuance of the proceedings.   The Commissioner was not required to respond to the submissions.

3      Hawkes Bay Regional Council v Herbert Construction Co Limited [2015] NZHC 1060.

being entitled to search the file in relation to the memoranda of counsel and the notice of discontinuance and direct that he be granted access to the file in relation to material filed after 1 October 2014; the existing limitations imposed in previous

orders remain in place.

P Courtney J

Details
AGLC
ASB Bank Limited v Commissioner of Inland Revenue [2015] NZHC 2177
Case
[2015] NZHC 2177
Decision Date

CaseChat Overview and Summary

In the High Court of New Zealand, Auckland Registry, ASB Bank Limited initiated proceedings against the Commissioner of Inland Revenue. The case involved a dispute concerning the interpretation and application of certain tax laws. The matter was ultimately discontinued before a substantive hearing could take place. Despite the discontinuance, ASB Bank Limited sought permission for Gareth Vaughn to search the Court file to access documents filed post the interlocutory stage.

The central legal issues before the court were whether the principle of open justice should outweigh the considerations of the orderly administration of justice and the protection of defendants from harm. The court had to determine whether the discontinuance of the proceedings at an early stage justified limiting access to the Court file, particularly in light of the greater public interest in the case compared to routine commercial disputes.

The court held that while the principle of open justice is crucial, it does not override other important factors such as the protection of defendants from harm and the encouragement of early resolution of claims. The court found that the discontinuance of the case before the substantive hearing stage warranted a cautious approach. However, the court also recognised the heightened public interest in the case, which justified granting limited access to the Court file for material filed after 1 October 2014. The existing limitations on access imposed in previous orders remained in effect.

The final orders of the court granted Gareth Vaughn permission to search the Court file in relation to material filed after 1 October 2014, while maintaining the existing limitations on access to other documents.

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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