Exterior Building Care Goleman Limited v AFO Industrial Limited (in liquidation) (Formerly called Air Fluid Otago Limited)

Case [2014] NZHC 1129


IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2013-409-000046 [2014] NZHC 1129

BETWEEN

EXTERIOR BUILDING CARE

GOLEMAN LIMITED Plaintiff

AND

AFO INDUSTRIAL LIMITED (IN LIQUIDATION) (FORMERLY CALLED AIR FLUID OTAGO LIMITED) Defendant

AND

LIQUIDATOR ONLY Associated Respondent

AND

TREVOR EDWIN LAING Associated Respondent

Hearing: 26 May 2014

Appearances:

D A Webb and R G McCrae for Plaintiff
D W Sim for Defendant

Judgment:

26 May 2014

ORAL JUDGMENT OF GENDALL J

[1]      This is a decision with respect to an interlocutory application for a stay of an earlier  judgment  and  adjournment  of  this  fixture  filed  by  the  company  AFO Industrial Limited (In Liquidation) dated 19 May 2014.   That application was supported by an affidavit of Mr Trevor Edwin Laing the liquidator, dated 29 April

2014, and an affidavit of Mr Allan Thomas Andrews dated 16 May 2014.

[2]      The  application  was  opposed  by  the  plaintiff,  Exterior  Building  Care

Goleman Limited.

EXTERIOR BUILDING CARE GOLEMAN LIMITED v AFO INDUSTRIAL LIMITED (IN LIQUIDATION) (FORMERLY CALLED AIR FLUID OTAGO LIMITED) [2014] NZHC 1129 [26 May 2014]

[3]      The application itself is made in reliance on r 12(3) Court of Appeal (Civil) Rules 2005.

[4]      Today I have heard submissions with respect to the application from Mr Sim as counsel for the defendant company AFO Industrial Limited (In Liquidation) and from Mr Webb as counsel for the plaintiff Exterior Building Care Goleman Limited.

[5]      Having heard those submissions, and considered the material which is before the Court with respect to this application, I find that the application fails.   The application for a stay pending appeal is dismissed.   My detailed reasons for this decision will follow:

[6]      Given that decision and in light of the directions that I made in a minute I issued  in  this  proceeding  dated  20  May  2014,  the  substantive  hearing  of  the plaintiff’s claim against the defendant company in liquidation in this proceeding CIV-2013-409-000046 will now proceed.  I am going to take a short adjournment in this matter for five minutes and then we will proceed with the substantive hearing.

Costs

[7]      With respect to the stay application, before me Mr Webb for the plaintiff sought costs in this matter against the liquidator and indeed an award of indemnity costs.

[8]      Costs are reserved however.

[9]      And, given the seriousness of the application for costs which is before me, I

now make the following directions:

(a)      The plaintiff is to file and serve any detailed submissions on the costs question it may wish to make within 10 working days of today.

(b)The defendant and the liquidator Mr Laing are to have the opportunity to file and serve any detailed memoranda on costs in response within a further 10 working days of that date.

(c)      The plaintiff is then to have an opportunity to file and serve any reply memoranda on costs, within a further five working days of that date.

(d)Those memoranda are to be referred to me, and in the absence of any party indicating they wish to be heard on the question of costs, I will decide that question based upon the material then before the Court.

...................................................

Gendall J

Solicitors:

Lane Neave, Christchurch

Rodgers Law, Dunedin

Donnie Stewart, Dunedin

Details
AGLC
Exterior Building Care Goleman Limited v AFO Industrial Limited (in liquidation) (Formerly called Air Fluid Otago Limited) [2014] NZHC 1129
Case
[2014] NZHC 1129
Decision Date

CaseChat Overview and Summary

The case of Exterior Building Care Goleman Limited v AFO Industrial Limited (in liquidation) (formerly called Air Fluid Otago Limited) was heard in the High Court of New Zealand at Christchurch. The plaintiff, Exterior Building Care Goleman Limited, brought a claim against the defendant, AFO Industrial Limited, a company in liquidation, over a matter that was not explicitly stated in the judgment. The liquidator of AFO Industrial Limited filed an interlocutory application for a stay of an earlier judgment and an adjournment of the fixture, which was opposed by the plaintiff. The application was made under rule 12(3) of the Court of Appeal (Civil) Rules 2005.

The court was required to decide whether the application for a stay pending appeal should be granted. The legal issue before the court was whether the application for a stay was justified and whether the stay should be granted to allow the defendant to appeal the earlier judgment. The court also needed to consider whether the application was made in a timely manner and whether there were any compelling reasons to grant the stay.

In its judgment, the court found that the application for a stay pending appeal failed and dismissed the application. The court considered the submissions made by the parties and the material before it. The court found that the application was not justified and that there were no compelling reasons to grant the stay. The court also noted that the directions made in a minute issued on 20 May 2014 would be followed, and the substantive hearing of the plaintiff’s claim against the defendant company in liquidation would proceed. The court took a short adjournment before proceeding with the substantive hearing.

The court reserved the question of costs and directed that the plaintiff file and serve any detailed submissions on the costs question within 10 working days. The defendant and the liquidator were given the opportunity to file and serve any detailed memoranda on costs in response within a further 10 working days. The plaintiff was then given the opportunity to file and serve any reply memoranda on costs within a further five working days. The court would decide the question of costs based on the material before it, unless any party indicated a wish to be heard on the question of costs.

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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