While
pleading poverty in the face of a court order for payment of $4.1 million to
Waikato inventors of an asparagus grading machine, Napier Tool and Die Ltd
restructured its balance sheet saving Australian-controlled parent Tru-Test
Corporation $4.11 million in advance of what proved to be an adverse court
ruling.
Last June, the High Court awarded
Tirau-based Schwarz family $4.1 million damages for breach of copyright after
eleven years litigation. Held liable,
Napier Tool & Die is appealing. It
asked the High Court to put enforcement on hold pending an appeal, saying it
had a net worth of only $327,000.
Enforcing judgment would lead to liquidation and any appeal would
collapse, it said.
Justice Hinton said a stay of enforcement
would have been refused but for the fact a priority Court of Appeal hearing
date has been set.
The court was told Napier Tool &
Die’s balance sheet was restructured immediately after the Supreme Court
refused leave to appeal on preliminary issues raised during the protracted High
Court litigation. Napier Tool & Die
declared a $2.25 million dividend in favour of Tru-Test. There was no evidence of dividends being paid
previously. A loan of $1.86 million from
Tru-Test was repaid by way of book entry, written off against money Napier Tool
& Die was owed by another Tru-Test company. Tru-Test specializes in
agri-technology. The share register is
dominated by Australian interests with Sydney venture capitalists holding a controlling
33 per cent stake through KTT Partnership Ltd.
Asked by Justice Hinton if Tru-Test might
provide a guarantee for all or part of the $4.1 million judgment debt as a
condition of granting a stay, lawyers for Tru-Test said the company would not
and further it could not be forced to.
Oraka
Technologies v. Geostel – High Court (26.08.16)
16.133
Post Judgment Note: Following subsequent appeals, Court of Appeal ruled in June 2020 damages payable to Schwarz family and Oraka Technologies should be calculated as a notional licence fee: $47,000 only. A low licence fee arose because a notional fee would assume a non-exclusive licence covering a limited territorial area.
Post Judgment Note: Following subsequent appeals, Court of Appeal ruled in June 2020 damages payable to Schwarz family and Oraka Technologies should be calculated as a notional licence fee: $47,000 only. A low licence fee arose because a notional fee would assume a non-exclusive licence covering a limited territorial area.