Vietnew Corporation Limited v Shand

Case [2023] NZHC 1630


IN THE HIGH COURT OF NEW ZEALAND PALMERSTON NORTH REGISTRY

I TE KŌTI MATUA O AOTEAROA TE PAPAIOEA ROHE

CIV-2022-454-102

[2023] NZHC 1630

UNDER the Companies Act 1993

IN THE MATTER

of an application to set aside a statutory demand issued under

s 290 of the Companies Act 1993

BETWEEN

VIETNEW CORPORATION LIMITED

Applicant

AND

JASON SHAND

Respondent

Hearing: 28 June 2023

Appearances:

J J McGuire for Applicant

P J Drummond for Respondent

Judgment:

28 June 2023


JUDGMENT OF ASSOCIATE JUDGE SKELTON


[1]                 In this proceeding, the applicant seeks an order setting aside the statutory demand issued by the respondent against the applicant dated 6 December 2022.

[2]                 The circumstances are that the respondent had determinations made in his favour by the Employment Relations Authority which required the applicant to pay the respondent the total sum of $26,396.53. On 12 August 2022, the applicant filed a challenge (appeal) in the Employment Court seeking a de novo hearing. The respondent issued a statutory demand in respect of the $26,396.53 dated 6 December 2022 and served on 7 December 2022. The applicant applied to set aside the statutory demand on 16 December 2022. The respondent filed a notice of opposition dated

VIETNEW CORPORATION LIMITED v SHAND [2023] NZHC 1630 [28 June 2023]

21 December 2022. On 10 February 2013, the applicant filed an application seeking an order that the Authority’s determinations be stayed. On 28 April 2023, the application for stay was granted by the Employment Court on the condition that the sum of $26,396.53 was paid into Court within 14 days. This amount was paid into Court by the respondent within the required period. The challenge (appeal) in the Employment Court is yet to be heard.

[3]                 Following an adjournment, the application to set aside the statutory demand came on for hearing today. I indicated some preliminary views to counsel. A discussion ensued, and the parties reached an agreed position.

[4]By consent, I enter judgment in the following terms:

(a)the statutory demand issued by the respondent against the applicant dated 6 December 2022 is set aside;

(b)costs on the application to set aside the statutory demand are reserved;

(c)if the parties are unable to agree on costs, then they may file memoranda as follows:

(i)applicant to file and serve its memorandum on costs (no more than five pages);

(ii)respondent to file and serve its memorandum on costs within five working days (no more than five pages);

(iii)applicant to file and serve any memorandum in reply within two working days (no more than three pages).

(d)costs will then be dealt with on the papers.

Associate Judge Skelton

Solicitors:

Jeremy McGuire, Palmerston North for applicant Flint Law Ltd, Wellington for respondent

Details
AGLC
Vietnew Corporation Limited v Shand [2023] NZHC 1630
Case
[2023] NZHC 1630
Decision Date

CaseChat Overview and Summary

In the High Court of New Zealand, Vietnew Corporation Limited, an applicant, sought to set aside a statutory demand issued by Jason Shand, the respondent, dated 6 December 2022. The dispute originated from determinations made in favour of Shand by the Employment Relations Authority, which mandated that Vietnew Corporation Limited pay Shand a total sum of $26,396.53. Following this, Shand issued a statutory demand, which Vietnew Corporation Limited contested, leading to an application to set it aside on 16 December 2022. Shand opposed the application, and the matter was heard on 28 June 2023.

The central legal issue before the court was whether the statutory demand should be set aside, considering that the applicant had filed an appeal in the Employment Court against the authority’s determinations and subsequently secured a stay of those determinations, with the condition that the disputed amount be paid into court. The court needed to weigh the procedural aspects of the statutory demand against the ongoing employment dispute and the appeal process.

Associate Judge Skelton considered the arguments from both parties and noted that an agreed position had been reached. The court set aside the statutory demand issued by Shand against Vietnew Corporation Limited, with costs on the application to set aside the demand reserved. The parties were instructed to file and serve memoranda on costs if they could not agree, with strict page limits and deadlines. Ultimately, costs would be dealt with on the papers. This judgment reflects the court's decision to balance the procedural fairness and the ongoing employment dispute resolution process.

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

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Ratio Decidendi

Legal Principle Established

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