Bennett v Ebert Construction Limited (in receivership and liquidation)

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

I TE KŌTI MATUA O AOTEAROA TE WHANGANUI-A-TARA ROHE

CIV-2018-485-792

[2020] NZHC 1003

UNDER the Receiverships Act 1993 and Part 19 of the High Court Rules 2016

BETWEEN

LARA MAREE BENNETT, JOHN HOWARD RISK and MICHAEL LONGMAN

Applicants

AND

EBERT CONSTRUCTION LIMITED

(in receivership and liquidation) Respondent

AUCKLAND VENTILATION SERVICES LIMITED

First Interested Party

TASLO STEEL SECURITY LIMITED

Second Interested Party

On the papers

Counsel:

R L Pinny for Applicants

Judgment:

15 May 2020

JUDGMENT (NO. 3) OF CHURCHMAN J

[1] In November 2018, the applicants were appointed receivers of a fund comprising of retentions held on trust for the subcontractors of the respondent (Ebert Construction Limited) (in receivership and liquidation).

[2] The applicants have now completed the receivership and have filed a final report dated 9 April 2020.

BENNETT & ORS v EBERT CONSTRUCTION LIMITED (IN RECEIVERSHIP AND LIQUIDATION) (NO. 3) [2020] NZHC 1003 [15 May 2020]

[3] By application dated 20 April 2020, the applicants seek an order formally bringing the receivership of the retentions fund to an end.

[4] Having reviewed the receivers’ report, I am satisfied that the receivership should be concluded. The receivership has resulted in a payment of approximately 96 cents in the dollar which, in the circumstances, represents a favourable outcome.

[5] Accordingly, I formally order that the receivership of the retentions fund is now at an end. I note that the receivers continue to act as receivers of Ebert Construction Limited (in receivership and liquidation) and nothing in this order relates to that receivership.

Churchman J

Solicitors:
Simpson Grierson, Wellington for Applicants

CaseChat Overview and Summary

The case before the High Court of New Zealand, Wellington Registry, involves Lara Maree Bennett, John Howard Risk, and Michael Longman as applicants, who were appointed receivers of a fund comprising retentions held on trust for the subcontractors of Ebert Construction Limited, which is in receivership and liquidation. Auckland Ventilation Services Limited and Taslo Steel Security Limited are first and second interested parties, respectively. The applicants seek to formally bring the receivership of the retentions fund to an end. The court was required to determine whether the receivership had been effectively managed and if concluding the receivership was in the best interest of the parties involved.

The court considered the receivers' final report and concluded that the receivership had resulted in a payment of approximately 96 cents in the dollar, which was deemed a favourable outcome given the circumstances. The judge found that the applicants had satisfactorily discharged their duties and that concluding the receivership was appropriate. The court took into account the efforts of the receivers in achieving a near-full recovery for the subcontractors and the overall management of the fund.

In light of the favourable outcome and the satisfactory discharge of duties by the receivers, the court formally ordered the end of the receivership of the retentions fund. It was noted that the receivers would continue to act as receivers of Ebert Construction Limited (in receivership and liquidation) and that the order did not affect that ongoing receivership. This decision recognises the effective management of the retentions fund by the receivers and allows for the formal conclusion of their role in that specific aspect of the liquidation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

On the papers
Counsel:	R L Pinny for Applicants
Judgment:	15 May 2020