Robert
Jones Holdings is to repay as a voidable transaction rents totalling $751,940
received at a time when tenant Northern Crest was insolvent, plus interest at
five per cent running from June 2011, the High Court ordered.
Liquidators of Northern
Crest Investments Ltd, Anthony McCullagh and Steve Lawrence, also tried, but without
success, to block RJH from taking any further legal action in the Northern
Crest liquidation and to pay extra as a penalty after it questioned their
motives in suing to recover rents received.
RJH alleged the liquidators were not doing their job properly and were
driven primarily by the desire to get cash in the door to pay their fees.
Northern Crest was
reincarnated as a property developer under the guidance of Mr Mark Bryers,
notorious following collapse of his Blue Chip projects.
The High Court was told
of the chaos Northern Crest liquidators faced when the company was put into
liquidation by court order in June 2011.
Most of its business records were in Australia. These records were in complete disarray,
disordered and with sections missing.
Piles of shredded material suggested attempts to destroy critical
documents. Analysis of company
transactions was hampered by the fact that dollar amounts often did not
distinguish whether the amount recorded was in New Zealand dollars or
Australian.
RJH resisted demands it
repay rental arrears received between January-November 2010 for a Northern
Crest Auckland tenancy. It said Northern
Crest did not make the payments; they were made by other companies related to
Northern Crest and did not have to be repaid to Northern Crest liquidators.
Justice Gordon ruled the
$751,940 rentals were paid out of moneys these other companies owed Northern
Crest and were paid across at the direction of Northern Crest. At law, this amounted to payment by Northern
Crest.
McCullagh
v. Robert Jones Holdings Ltd – High Court (8.09.17)
17.113