A
Whangarei businessman was ordered to pay $10,000 damages for unlawful arrest
after having his business partner arrested at Auckland Airport prior to
departure for Vanuatu.
The High Court was told Mr Robinson and Mr
Freakley had run Whangarei Heads Enterprises Ltd as a joint venture company
selling roading metal, hiring out equipment and undertaking landscaping. Difficulties arose when Mr Robinson’s other
business interests got into financial difficulty through 2011. These problems spilled over into Whangarei
Heads. It culminated with Mr Robinson
issuing a trespass notice against Mr Freakley and Mr Robinson hiding four items
of company machinery: a tractor, a front-end loader, a digger and a logsplitter. He claimed to be holding this equipment as
security for money allegedly owed him by Mr Freakley.
Evidence was given that Mr Freakley had a writ
of arrest issued by the High Court when he heard Mr Robinson was booked to fly to
Vanuatu. Arrests may be ordered under
the Judicature Act where a person is about to leave New Zealand and this
absence will materially prejudice the success of a civil court action. The High Court later ruled this arrest was
unlawful. There were no proper grounds
for the arrest. Mr Robinson’s departure
did not prejudice any legal claim Mr Freakley might have. Mr Freakley already had a signed letter from
Mr Robinson stating that he had seized the four items of company
equipment. This was sufficient evidence
to sue. Justice Gilbert indicated the
arrest was used for a collateral purpose: to force Mr Robinson to disclose
where the equipment was hidden. The
arrest warrant would not have been issued if the full circumstances of the
dispute between the two had been properly disclosed, he said.
Mr Robinson was held in prison for 20
hours. Justice Gilbert awarded him
$10,000 damages as compensation for his unlawful arrest and detention. His Honour said Mr Freakley had not acted
with malice. He had acted on legal
advice in what he thought was the best interests of Whangarei Heads.
Robinson
v. Whangarei Heads Enterprises – High Court (27.05.15)
15.057