Munford v Mr & Le Munford Limited

IN THE HIGH COURT OF NEW ZEALAND PALMERSTON NORTH REGISTRY

I TE KŌTI MATUA O AOTEAROA TE PAPAIOEA ROHE

CIV-2018-454-000092

[2018] NZHC 2473

UNDER The Companies Act and Part 18 of the High Court Rules 2016

IN THE MATTER OF

application for rectification of a Share

Register under section 91 and an application for relief under section 174, and of claims in equity

BETWEEN

MICHAEL RICHARD MUNFORD

Plaintiff

AND

MR & LE MUNFORD LIMITED

First Defendant

HAYDEN TRAVIS RANKIN
Second Defendant

JANARA NZ LIMITED and JANARA ENTERPRISES LIMITED

Third Defendants

Hearing: (On the papers)

Judgment:

20 September 2018

JUDGMENT OF COLLINS J

[1] A without notice application for an interim injunction has been referred to me as Duty Judge.

[2] The application has been made without notice because the plaintiff is concerned that the second defendant could attempt to pass a special resolution placing the first defendant into liquidation, “at a moment’s notice”.

MUNFORD v MR & LE MUNFORD LTD [2018] NZHC 2473 [20 September 2018]

[3] It is, however, essential that the first and second defendants be given a reasonable opportunity to respond to the application.

[4] To achieve this, I will issue the interim injunction sought by the plaintiff but, for a strictly limited period of time.

[5] The application and supporting affidavits are to be served on the first and second defendants. The Court will make time available to hear the application for an injunction on Tuesday 2 October 2018. Two hours have been allocated.

[6] If Mr Mahuta-Coyle is unable to appear that day, alternative counsel will need to be instructed.

[7] In the meantime, I grant the interim application sought until further order of the Court. I do so because, I am satisfied there is a reasonably arguably claim and the balance of convenience justifies the granting of the interim injunction for the limited period that I have indicated.

D B Collins J

Solicitors:
Integra Law Limited, Paraparaumu for Plaintiff

CaseChat Overview and Summary

The High Court of New Zealand, Palmerston North Registry, was presented with an application for an interim injunction made by Michael Richard Munford against Mr & Le Munford Limited and others. Munford sought the injunction without notice, expressing concern that the second defendant might pass a special resolution to liquidate the first defendant at short notice. The application was referred to Collins J, Duty Judge, who acknowledged the need for the defendants to respond appropriately to the application.

The legal issues before the court included whether there was a reasonably arguable claim warranting an interim injunction and whether the balance of convenience favoured granting such an injunction. The court had to balance Munford's concern about potential immediate harm against the defendants' right to be heard. Collins J determined that while the application should proceed without notice initially, the defendants must still be given a reasonable opportunity to respond. The court decided to issue the injunction but for a limited period to allow the defendants to respond, ensuring their right to be heard was protected.

Collins J granted the interim injunction sought by Munford, but only for a strictly limited time to allow the defendants to respond to the application. The injunction was set to expire until further order of the court. The application and supporting affidavits were to be served on the defendants, and a hearing was scheduled for 2 October 2018. The court ensured that if the assigned counsel could not appear, alternative arrangements would be made. Collins J concluded that the interim injunction was justified based on the reasonably arguable claim and the balance of convenience.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

UNDER	The Companies Act and Part 18 of the High Court Rules 2016
IN THE MATTER OF	application for rectification of a Share Register under section 91 and an application for relief under section 174, and of claims in equity
BETWEEN	MICHAEL RICHARD MUNFORD Plaintiff
AND	MR & LE MUNFORD LIMITED First Defendant HAYDEN TRAVIS RANKIN Second Defendant JANARA NZ LIMITED and JANARA ENTERPRISES LIMITED Third Defendants